The Naira depreciated by 98 kobo at the interbank foreign exchange market and by one kobo at the official market in spite of $500 million sale by Central Bank of Nigeria.
From N160.8125 per dollar, the exchange rate of the naira rose to N161.8 per dollar in the interbank market, while the official exchange rate closed at N155.76 per dollar from N155.75 last week.
In a bid to save the naira, CBN, at the bi-weekly foreign exchange auction conducted yesterday, increased foreign exchange sale to $500 million from $300 million. This represents 40 percent increase.
A senior foreign exchange dealer, who spoke on condition of anonymity, attributed the depreciation of the naira to huge foreign exchange demand in the system.
This, he said, was due to exit of foreign investors from the nation's bond market, which led to increased demand for foreign exchange as the foreign investors seek to repatriate their money.
Managing Director/Chief Executive, Financial Derivatives Company Limited, Mr. Bismarck Rewane, said: "There are three pressures here.
There are those who have transactions to settle, there are those who are afraid that the dollar would not be available when they need it in the future, and there are the speculators."
Click to signup for FREE news updates, latest information and hottest gists everyday
Advertise on NigerianEye.com to reach thousands of our daily users
Home
Unlabelled
Naira falls by 98k despite CBN’s $500m
Naira falls by 98k despite CBN’s $500m
NigerianEye
-
Wednesday, July 10, 2013
Subscribe to:
Post Comments
(
Atom
)
Something drastic must be done by the CBN to immediately rescue the national currency from these so called foreign investors. I ask, why must Bonds be openly displayed to the foreign investors control to the extent that they are capable of manipulating naira to the detriment of the economy. No viable nation would allow foreign control of its Bonds to the detriment of its economy. Central Bank should take immediate step to regularize the influence of these investors for it is obvious there investments are not genuine but a calculated effort to dislodge the naira! The N160 exchange rate to one US dollar is obviously ridiculous and unexplainable to the ordinary Nigerians. Something is wrong somewhere with our financial system. The CBN should come out boldly with a workable exchange rate as done by Ghana and other developing nations. I ask again, what role is the million barrels a day crude oil production doing in our economy? A strong revaluation of our urgent domestic needs must be revisited. Expenses that require foreign exchange must be of great importance to the economy. Un necessary oversea trips must be reduced or eradicated. Nigerians must lean to discipline themselves and learn to adjust to progressive attributes. Overseas trips for medical treatments must stop except for conditions that are life threatening. Alhaji Sanusi, you need to gear up your efforts by coming out boldly to defend the naira. Before you know it, a USD may exchange for N200 before the year is over! It is possible except something is done to avert the calamity.
ReplyDelete