Stakeholders express concern over naira’s slump

“Those banned from participating in the official market would need to find a way of meeting their forex needs. This is what is pushing  rates up,” he opined.
The Lagos Chamber of Commerce and Industry (LCCI) urged the CBN to rescind the restriction on importers of some items from participating in the interbank forex market, saying it is having an adverse effect on the economy.
But the Central Bank of Nigeria (CBN) has refuted the claim that the present slide of the naira was caused by the restriction of importers of 38 items from participating in the country’s interbank foreign exchange market.

The naira yesterday continued to exchange for N230/$1 at the parallel market, maintaining the rate it traded the previous day.
The apex bank’s Director, Corporate Communications, Mr. Ibrahim Mu’azu told Hallmark that it was too early to attribute the latest struggling of the nation’s currency to the new forex directive which the CBN issued last week.

“You need to give it some time before you make any assessment of the new forex policy,” he said.

He argued that those linking the present slide of the naira to the restriction of importers of certain products from accessing forex from the official market were only trying to influence the market.
“They cannot be saying the truth. They were only reacting to what happened in a day. They have to watch it and see if this trend would continue,” he noted.
The dollar was yesterday sold for N196.95/$1 at the interbank, appreciating from the N199.40/$1 it traded a week ago.
The apex bank on Tuesday threatened to sanction any authorized dealer who funds those items that were restricted from accessing forex from the official market.

“The Central Bank of Nigeria wishes to reiterate that those items which have already been classified as “Not valid for forex” cannot be funded at the interbank, from the proceeds from exports and Bureau de Change sources.
“Consequently, authorized dealers are enjoined that these funded from sources outsides all the segments of the Nigerian foreign exchange markets,” the CBN stated in a circular signed by its director for Trade and Exchange Department, Mr. Olakanmi Gbadamosi.

Hallmark recalls that the CBN last Wednesday released a list of 41 imported items that cannot access forex at the official forex market.
Meanwhile, the Federal Government has concluded plans to raise N50.4 billion worth of Treasury bills of 3-month and 6-month maturities at an auction next week.
According to the apex bank, N 25.40 billion worth of the 91-day paper and 25 billion naira of the 182-day debt will be sold onJuly 8, 2015, through the Dutch Auction System (DAS).