NAIRA TO RISE FURTHER AS BANK REJECTS CASH DEPOSITS OF DOLLAR INTO DOMICILIARY ACCOUNT

The naira had appreciated against the dollar from 245 to 220 at the parallel market last week after banks started denying their customers opportunity to make cash deposits of dollar, pound and euro into their domiciliary accounts.



Foreign exchange dealers say that the naira would likely appreciate further against the dollar at the black market this week.

A forex trader, who chose to speak under the condition of anonymity said, “We expect the naira to appreciate further this week at the parallel market.

“Banks have flooded the market with dollars and other foreign currencies. This is making the naira to appreciate. There is still a huge stock of dollars out there that the banks will be pushing into the parallel market this week.”

The Acting President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, also noted that large amount of dollars in the market would make the naira to appreciate further at the parallel market this week.

Banks had last week told customers that they would no longer collect cash deposits into domiciliary accounts.

Bankers also noted that the parallel market was beginning to see a reversal in the naira’s weakness as banks stopped taking dollar deposits.

The local currency has lost around 15 per cent against the dollar over the past year, with an official devaluation in November and a de facto one in February.


-Punch extract