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Monday, 29 February 2016

Naira Gains Value Against Dollar


There are strong indications that the efforts of the Central Bank of Nigeria (CBN) to stabilise the naira may have started yielding the expected results.

The CBN governor, Godwin Emefiele, last week accused speculators who connived with bureau de change operators to undermine the efforts of the bank of propping up the naira and warned that such speculators would eventually be punished by the market.

The value of the naira which started the week at N367 rose to N350 by Tuesday and N305 by Wednesday. There had been a wide gap between the selling price and the buying price on Wednesday. Money changers bought from customers at N270 per dollar but sold at average of N305 per dollar.

A bureau de change operator explained that the wide gap between the buying rate and selling rate was due to the attempt by operators to minimise their loss.

He said, “People had bought when the rate was N370, and they are already making losses. But by combining dollars bought at N270, the average buying rate becomes N320. So at N305, they are still losing about N15 per dollar.”

The Nigerian Naira on Friday depreciated against the dollar at the parallel market, losing N10 from Thursday to close at N320 to the green back.

Currently, the naira as gained value against the dollar which sells at N305.

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