Mary Onyia
The Naira has once again on Thursday shot up to N530 to a dollar, after closing Wednesday, at N528 to a dollar at the parallel market.
This slide in the naira has been attributed to the mounting pressure on the national currency occasioned by the suspension of foreign exchange transactions with bureau de change operators in Nigeria.
It will be recalled that the CBN Governor Godwin Emefiele had on July 21 discontinued the sales of foreign exchange to all BDCs across the country, accusing them of engaging in illicit forex dealings and other forms of sharp practices in the financial sector, an allegation which the BDC’s have since denied.
This action by the CBN governor is not without its fallout as most businesses are now required to seek their foreign currencies through the banks.
While many have applauded this move by the apex bank, describing it as a bold step taking to salvage the national currency and sanitize the market; others have criticized the governor for being too high handed over the matter, adding that the policy will create a lot of bottle necks in the financial system
The government has continued to peg the official rate at $412, raising concerns that bank officials are hoarding dollar allocations for onward sale at the black market at a more lucrative exchange rate.
The CBN has acknowledged complaints from Nigerians over bankers’ underhand dealings but has yet to fully address the challenge.