The naira has fallen to 418 against the dollar at the
parallel market on Tuesday as scarcity of foreign exchange continued to weigh
on the official interbank and black market.
The naira traded at a fresh record low of 418 to the dollar on the black
market, against 414 a dollar on Monday, traders said.
The local currency, which closed at 414 against the
greenback on Monday, traded at 415 in Lagos, 417 in Abuja and 418 in Kano,
foreign exchange dealers said.
Foreign exchange analysts believe the lingering scarcity of
forex has been worsened by the banning of eight commercial banks from the forex
market by the Central Bank of Nigeria.
The CBN last week Tuesday banned nine lenders from forex
transactions for failing to remit the Nigerian National Petroleum Corporation’s
$2.334bn into the Treasury Single Account.
The United Bank for Africa Plc, one of the nine lenders, was
later re-admitted after it remitted its share of the funds to the TSA.
A day after the CBN banned the nine banks from the forex
market, the local currency depreciated to 402/dollar, down from 397 it closed
against the greenback on Tuesday.
The local currency has continued to depreciate gradually.
Forex dealers maintained that the demand pressure on the dollar, mounted by
summer travellers and parents paying schools fees of their children studying
overseas ahead of resumption in September, was exacerbated by the CBN’s forex
ban on the nine lenders.
The naira, which hit a fresh record low since the CBN
floated the currency on the official interbank market in June, first touched
400/dollar at the black market this month.
Meanwhile, the CBN sold around $1.5m at the interbank forex
market on Tuesday to support the local currency and ensure the closing rate
stabilised, Reuters reported, quoting currency traders.
2 Comments
The Forex Megadroid maybe new of the market, but it is by far the best one I have reviewed so far. The Megadroid as typically a 97% successful trade rate, and even the 3% it loses are small losses. forex mt4 indicators
ReplyDeleteLearn important forex trading tips from the wisdom of an experienced forex trader. Study these forex trading principles and ideas, because one day it may save your financial bank account from any major forex trading loss. This article is part 1 of 4. free forex strategies
ReplyDelete