Naira appreciates against dollar at interbank market
The Naira on Monday appreciated against the dollar at the interbank market, the News Agency of Nigeria (NAN) reports.
The currency gained 1.4 points to exchange at N307.25 to the dollar, from N308.69 it exchanged on Friday, representing an appreciation of 0.5 per cent.
It, however, stabilized at the parallel market, exchanging at N425 to the dollar, a figure it had maintained for three days, while it traded against the Pound Sterling and Euro at N550 and N470, respectively.
Trading at the Bureau De Change (BDC) segment of the market also showed the naira stabilising against the dollar, closing at N422 while it settled at N549 and N470 against Pound Sterling and Euro, respectively.
Currency traders attributed the relative stability of the naira to the anticipation of a likely policy change by the MPC meeting that is underway at the CBN.
They expressed the hope that the apex bank would reconsider its foreign exchange policy with a view to coming up with the best option that would rescue the nation’s currency.
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2 Comments
Hardly anything anybody can do except increase the supply of the dollar or make government more efficient by not
printing more naira that wind up chasing the dollar and increasing the price. If the Fed. govt. wants to stop the dollar chase then they should stop advancing more money to the states. The Fed. govt. borrows money at up to 22% part of which is advanced to states to pay salaries but the salaries are not paid or little is paid and rest is embezzled and used to purchase dollar.
States may not embezzle in that brazen manner as they did during Jonathan days but they can claim economic summit which costs 500million to 1 billion naira. Actual cost may be 40milliion and the rest goes to different pockets. The cash siphoned off is too unwieldy to carry around so they purchase dollar from BDCs.
Whenever you see billboards by state governments ask yourself will you spend N100million on billboard to send Christmas messages when you are cash-strapped? Chances are you will say no but why are governments doing….. because of Chop! Chop!
It’s either the Fed Govt. is naive or they are stealing money to pay off campaign debt. Otherwise why would they continue to engage in this kind of reckless spending.
Thank
WELL stated true-state of the situation by you..
We will review and take appropriate action.