The Central Bank of Nigeria (CBN) is targeting a N200 to dollar exchange
rate in the parallel market, The Nation learnt on Friday.
The
naira which on Friday traded at N330 to a dollar in the parallel market
is expected to appreciate speedily, as impact of the CBN’s measures to
stabilize the currency volatility in the parallel market begin to
materialize.
President, Association of Bureau De Change Operators
of Nigeria (ABCON), said the N330 rate in the parallel market is an
improvement from last week’s rate when the naira exchanged for N391 to
dollar.
The strident calls by the International Monetary Fund
(IMF) and some foreign interest for Nigeria to devalue its currency and
the artificial spike in forex rate created by Bureau De Change operators
appears to have tanked. This has been linked to a complex and
integrated currency management approaches deployed by the CBN.
According
to a top source in the apex Bank, “The aim of CBN is to ensure that the
divergence between the official and parallel rate does not exceed N3,
so we are looking at a parallel market rate of N200/$ because the
downward trend in the pressure on the naira will be sustained.”
“The
CBN has the capacity to sustain the downward pressure and will deploy
further currency management initiatives, while capitalising on fiscal
policies of the federal government to remain in support of
non-devaluation of the Naira. The current stand of the federal
government on Nigeria’s legal tender is Non-Devaluation. It will be
unwise for anybody to be hoarding dollars because we can assure you that
Naira appreciation is going to trend upwards going forward.”
So
far, the CBN in a bid to manage the pressure on supply has deployed over
$11.7billion to support Agricultural Sector, SMEs, manufacturers and
others. This has reduced patronage of black market by end-users and has
forced rent seekers to dump the greenback thereby creating a dollar-glut
in the black-market.
The source noted that it has been observed
that most of the imports that were draining forex resources have since
found local substitutes with attendant savings in forex and shortage of
demand for the greenback, which was fuelling the pressure, this is also
coming on the heels of the CBN instruction to commercial banks to
publish allocation of forex to end-users, this has in recent times
ensure that real sector of the economy and genuine users for education
and medicals have been able to access forex at official rate.
Saturday, 27 February 2016
15:02:00
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