Thursday, 25 August 2016

Naira now exchanges for 402/dollar, as the federal government fails to put realistic measures to strengthen the economy

Naira drops further

The naira dropped to 402 at the market on Wednesday, a day after the Central Bank of Nigeria (CBN) placed ban on 9 banks from the forex market over their inability to transmit $2.334bn to the Federal Government's Treasury Single Account domiciled with the Central Bank of Nigeria.

The national currency closed at 397 to 1 dollar on Tuesday.

At the interbank market, the naira shut down at 315.93/dollar, which is lower than 305.5 that was recorded on Tuesday.

The naira, which depreciated at a new record low following the CBN decision to float the money on the official interbank market in June, initially moved 400 to 1 dollar at the black market this month.

Meanwhile, brokers said that the CBN sold dollars on Thursday and Friday. It additionally sold about N236bn ($776m) of open business sector operations treasury bills on Thursday, which sent the banking system into a shortfall of around N39bn on Friday.

Merchants said interbank rates ought to expedite this week when a portion of July's spending allotment ought to enter the banking system.


The Federal Government appropriates income from unrefined crude each month among its 36 states, local and federal administrations.

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