The naira on Wednes- day lost N1.26k or 0.64 percent against the US dollar at the inter-bank market following the Cen- tral Bank of Nigeria’s (CBN) policy restricting access to foreign exchange by import- ers of certain items.
Consequently, after trading on Wednesday, the local currency closed at N198.58k/$ compared with N197.32k/$ the previous day, according to data from Financial Markets Dealers Quotations (FMDQ).
On Tuesday, naira gained N1.34k or 0.67 percent over the US dollar at the inter-bank market after it weakened against the US dollar by N1.24k or 0.63 percent on Monday.
The naira has come un- der pressure since the price of oil, Nigeria’s main export, plunged.
The central bank has spent $3.4 billion to prop up the naira since it fixed the exchange rate in February, and tightened trading rules to curb speculation.
Bismarck Rewane, man- aging director/CEO, Finan- cial Derivatives Company Limited, said the new FX policy by the CBN will reduce disposable income, increase pressure on parallel markets as demand for FX by im- porter would be channelled toward the parallel market.
Furthermore, he said the spread between the inter- bank and parallel market will increase, as “adminis- trative management of the currency is not efficient. They should allow FX to find its true value.”
HOPE MOSES-ASHIKE
