Foreign exchange traders in Nigeria’s currency black market, who have engaged in aggressive ‘stocking’ of dollars at a premium in expectation of a rise in the exchange rate in the near future, are presently posting heavy losses.
According to AbokiFX.com, which tracks black market rates, the Naira gained against the U.S. dollar on Monday.
At the market segment, the local unit closed at N512.00 per $1 on Monday, according to data published at the black-market window.
It implies an appreciation of N13.00, or 248 basis points, from the N525.00 rate it traded on the 28th of July.
READ: Exchange rate: Is Nigeria better with a weak naira?
Banks in Nigeria have launched a promotional campaign to help consumers understand where they can obtain dollars and how to do so.
Throughout the country, commercial banks have assured individuals via emails that you can walk into any branch to buy dollars for school fees, medical bills in foreign countries, and other foreign exchange transactions.
A number of currency analysts predicted the spike in the parallel market exchange rate last week will be temporary, noting, banks will be rethinking customer experiences and tweaking services so that retail customers can more easily access foreign exchange.
READ: We have dollars – Nigerian banks tell customers
Consequently, the Central Bank of Nigeria (CBN) has rejected speculations that it is contemplating converting foreign currency (FX) in naira-denominated customers’ domestic accounts.
Acting director-in-charge of corporate communications at the apex bank, Osita Nwanisobi, told reporters in Abuja on Monday that those making such accusations were criminal speculators.
According to Nwanisobi, the CBN does not plan to tamper with the foreign exchange deposits in the accounts of its customers, contrary to the reports about its plans to check what is purportedly the unavailability of foreign exchange.
He urged operators of domiciliary accounts and others in the financial community to go about their legitimate foreign exchange transactions without heeding fictitious stories intended to pit them against the apex bank, triggering chaos in the system.
With this looming threat by the CBN to forcefully convert dollar to naira for local bank customers with dollar domiciliary account, would you advise me to quickly move my dollars to international banks like Standard Chartered Bank?
CBN regulations cover all banks operating in Nigeria (even the foreign owned ones like Citi, Stanbic, Stanchart etc).
Muhmmed
No need for panicking. CBN has no intention for converting dollar in Nigerians domiciliary account into Naira. From what I have read and listened to from foreign exchange experts, no where it’s said in the Constitution of CBN to do it.
Shun wrong speculation by black market
Let CBN do more,so that things can go back to normal in Nigeria.
CBN had waste effort in supplying dollars to BDC it couldn’t properly track or regulate for years instead of focusing on conventional banks.
Earnings everyday, every minute and seconds
We will soon be back to the ‘ARRANGEE’ of years again where some bank staff and their agents outside were the only beneficiaries of this
type of the new CBN trials with banks.
If you walk into any bank and they tell you they font have dollars, call CBN toll free line or send an email to report such bank branch.
Please kindly explain to us when a bank uses one’s Dollar in his account without his consent for visa settlement. Cos I didn’t apply for any visa yet they confiscate my money from account.