Naira loses, trades at N211 to $1 at  parallel market

“It is just a matter of time; I don’t think this is sustainable, except the proper thing is done.

“The CBN needs to free the currency by allowing market forces to determine its actual value.

When it continues to restrict the demand side, it becomes an imperfect market.

The actual value of the naira is not the CBN value,” he asserted.

The MAN chief economist added that the country’s export that was supposed to take care of the supply of forex is still very volatile.

Another analyst who does not want his name mention on print, told Hallmark that the apex bank is only addressing the demand for forex, but doing very little about its supply.

He noted no currency is sustained through the regulation of its demand, adding this measure may promote unemployment.

The nation’s currency has been relatively stable since the Central Bank of Nigeria (CBN) banned Deposit Money Banks (DMBs) from accepting dollar deposits.

However, Alhaji Aminu Gwadabe, President, Association of Bureau de Change Operators of Nigeria (ABCON) attributed this recent appreciation of the naira to the ability of the apex bank to checkmate

Nigerians travelling with large sum of dollars, which he said helped in cutting down forex demand.

According to him, the efforts of the CBN are being to pay off as the volatility of naira has been put under check for almost a month.

The country’s currency last month crashed to record low of N245 against the dollar, following the apex bank’s decision to bar importers of 41 items from accessing forex from the interbank market.

The CBN, thereafter, instructed banks to stop collecting dollar deposits, but allowed customers to transfer forex into their domiciliary accounts as well as carry out cash withdrawal from them.

These two policies seemed to have eased dollar demands, thereby reducing the pressure on the naira.

The CBN also limited the use naira denominated debit and credit cards at POS machines in any part of the world to $50,000 annually.

“ATM withdrawals (cash) shall continue to be a maximum of $300 per day. The general public is hereby advised to channel any complaints arising from any authorized dealer’s refusal to process such legitimate demand to the Director, Consumer Protection Department,

Central Bank of Nigeria, for necessary action,” the apex bank stated recently.

The apex bank has been reeling out different directives, all in the bid to stabilize the naira, which has been very volatile since the prices of crude oil began to fall last year.

Meanwhile, the apex bank assured that it will continue to meet the forex needs for remittances for school fees, student maintenance allowances, (PTA), medical and other eligible transactions.