Naira stabilizes at N497/$ at parallel market
The Naira yesterday stabilized at N497 to the dollar at the parallel market, maintaining rate from Monday.
The Naira, however, depreciated slightly against the Pounds Sterling and weakened against the Euro at the unofficial market as it closed at 597 and 521 respectively, from N595 and N517 traded on Monday.
At the Bureau De Change (BDC) window, the Naira traded at N399 to a dollar, the rate it would maintain for the rest of the week, while the Pound Sterling and the Euro traded at N604 and N522 respectively.
Trading at the interbank market saw the Naira also maintaining N305.25 to a dollar, the same price it was sold on Monday.
Traders at the market said that while the scarcity of the greenback remained, there were strong indications that the Naira was on its way to recovery.
Worried by the development, the Association of Bureau De Change Operators of Nigeria (ABCON) last week pushed for the adoption of a single rate at the market.
Alhaji Aminu Gwadabe, the President of ABCON, argued that multiple rates were frustrating efforts at stabilizing the Naira.
Gwadabe expressed optimism that the resumption in the sale of about N250 million dollars to members of the association this week would help in addressing liquidity challenges in the market.
In a similar vein, Minister of Finance, Mrs. Kemi Adeosun, informed lawmakers recently that “the black market would soon collapse because it is not driven by any fundamentals and is a very misleading market. The craze for dollars is not driven by any rational consideration and it will soon collapse.”
According to her, the nation’s currency is valued at between N305 and N315 but the unnecessary demand for dollar was pushing people to buy it at higher rates.
She said: “We are dealing with a shortage of dollars but the Central Bank of Nigeria (CBN) has put in place measures to stimulate more supply of dollars.”
Also speaking on the efforts being made to address dollar shortage, a CBN official, Mr. Moses Tule, said the apex bank was increasing exports to earn more dollars, adding that they are equally trying to reduce demand for foreign exchange.
