Is the naira now a mere paper under this current Buhari led APC government?

With the continuous depreciation of the naira, Nigerians from all segments of the economy and regions are now wondering why the much publicised 'yaun/naira' deal has not made any significant impact?

 As Naira went under new weights in the black market Wednesday, the Central Bank of Nigeria, CBN, issued more mandates limiting utilization of domiciliary bank accounts by bank clients, evidently to stem the weights and enhance official supply of outside trade to the interbank market.

 As an aftereffect of the weight, Naira collided to around N460 and N465/USD1, against the opening rate of N445/USD1 in the black market, however the interbank rate devalued only imperceptibly to N312.9/USD1, against N310 prior in the week.

Cash merchants from the official and black market segment of the business sector credited the repeated weight on rates to a declining supply hole at all the fragments, even as CBN's mediation, as indicated by them, has turned out to be too thin to mollify the immense demand.

According to one of the merchants in a commercial bank: “CBN may have started finding it difficult to intervene with significant supply of foreign currency to the interbank market.

“On the other hand we have been having increased demand from our customers but we are unable to source their requirements for some weeks now.”

Against the setting of the gigantic free market activity hole, CBN seemed to have rejuvenated its limitation measures on access and utilization of autonomous foreign exchange assets.

Recently, some bank clients said they had gotten messages from their banks cautioning them to stop from utilizing foreign exchange inflows as a part of their domiciliary bank accounts purpose of trading.

The orders, as indicated by a source in a bank, came against the rise of a flourishing cash exchange by a few people with their domiciliary bank accounts.

 According to the e-mail, the guidelines stated: “All customers of financial institutions are expected to only use their accounts for their direct personal/company related transactions.

“No customer of any financial institution is permitted to engage in any activity that could be perceived as international money remittance service (IMTO) or bureau de change (BDC) activities without the express approval of the CBN.

“Any customer who fails to adhere to these guidelines runs the risk of being reported not only to the CBN but subsequently to the security agencies.’’

A portion of the banks' record officers who addressed Vanguard trusted the CBN bank would catch up this order with more stringent control of access and utilization of domiciliary records.

Also a financial expert at CardinalStone Partners Limited said: “There is no liquidity yet in the foreign exchange market and the situation is worsening. We need emergency borrowings, foreign exchange inflows as soon as yesterday.

“The forex is not available at the interbank market and that is why the demands are going into the parallel market and hence the rate there is shooting up.”