Financial Experts Reveal Why CBN Interventions To Save Naira Failed

at 07:40 PM, 23/08/2017 (1 year ago)
(18815 | Hero) Online (f)

Financial experts have diagnosed plausible reasons for the steady depreciation of the nation’s currency in spite of series of interventions by the Central Bank of Nigeria (CBN) in the foreign exchange market.

The experts on Wednesday in Lagos said that a single market rate, among others, was required to reverse the depreciating trend of the naira.

Alhaji Aminu Gwadabe, President, Association of Bureaux de Change Operators of Nigeria (ABCON), said an apparent devaluation of the interbank market rate was having a negative impact on the Naira.

Gwadabe noted that investors were uncomfortable with the prevailing multiple rates in the market, adding that multiplicity of rates could engender currency speculation and round tripping.

The expert also said that the demand for foreign exchange by pilgrims was putting the naira in difficulty.

The ABCON chief urged the regulatory authorities to work towards achieving a single market rate.

Mr. Harrison Owoh, a financial expert and a BDC operator, said the demands for foreign exchange by pilgrims were far outstripping the supply.

Owoh said that 2000 dollars auctioned to pilgrims on subsidized rate appeared not to meet their needs; hence they had to put pressures on the parallel market for more.

The naira relapsed into depreciation after several weeks of appreciation fueled by the aggressive interventions of the CBN at the foreign exchange market.

The naira had exchanged between N360 and N365 to the dollar for about four months before it started depreciating, exchanging between N367 and N370 to a dollar at the parallel market.

pricklong at 08:23 PM, 23/08/2017 (1 year ago)
(4175 | Gistmaniac) (m)
compare to when it was 560
Reply
Sniper101 at 09:47 PM, 23/08/2017 (1 year ago)
(2099 | Gistmaniac) (m)
the CBN needs to do something better, really quick, about the fast decline of the  Nigerian currency
Reply
Sniper101 at 10:03 PM, 23/08/2017 (1 year ago)
(2099 | Gistmaniac) (m)
when GEJ was not fighting #corruption the dollar was just about 125naira as at then

now that PMB is strongly fighting the said #corruption the dollar have drastically risen to 370naira per dollar

...if ya ask me, I would say Nigerians are better off with the #Corruption as it were as at a few years back
Reply
nametalkam at 10:19 PM, 23/08/2017 (1 year ago)
(14804 | Hero) (m)
Quote from: Sniper101 on 10:03 PM, 23/08/2017
when GEJ was not fighting #corruption the dollar was just about 125naira as at then

now that PMB is strongly fighting the said #corruption the dollar have drastically risen to 370naira per dollar

...if ya ask me, I would say Nigerians are better off with the #Corruption as it were as at a few years back

You need to go back 2001 to find the last time dollar was N125
Reply
Zaki68 at 10:37 PM, 23/08/2017 (1 year ago)
(995 | Upcoming) (m)
Quote from: nametalkam on 10:19 PM, 23/08/2017
You need to go back 2001 to find the last time dollar was N125
MAYBE IN 2001 HE WAS JUST 12 YEARS OLD
Reply
ruthie at 09:22 AM, 24/08/2017 (1 year ago)
(17279 | Hero) (f)
more things need to be done to stabilize the currency again..we cant let it get out of hand again
Reply
tegonwa at 09:35 AM, 24/08/2017 (1 year ago)
(6437 | Gistmaniac) (m)
With Kemi Adeosun?I Do Not Have Much Trust In Nigerian Economy.Nawaa O!
Reply
tegonwa at 09:36 AM, 24/08/2017 (1 year ago)
(6437 | Gistmaniac) (m)
With Kemi Adeosun?I Do Not Have Much Trust In Nigeria's Economy.Nawaa O!
Reply

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