Naira Remains Stable at Parallel Market

Naira on Wednesday remained stable at the parallel market, exchanging at N450 to a dollar, the News Agency of Nigeria reports.

The Pound Sterling and the Euro crashed further at the parallel market, exchanging at N535 and N460 respectively.

At the Bureau De Change window, the Naira was sold at N399 to a dollar, the Central Bank of Nigeria-controlled rate, while the Pound Sterling and the Euro closed at N610 and N500 respectively.

At the interbank window, the Naira closed at N305.25 to a dollar.

Traders at the market urged the CBN to sustain the gains of the new policy by boosting liquidity at the market.

Meanwhile, Prof. Sheriffdeen Tella, a Senior Economist at the Olabisi Onabanjo University, Ago-Iwoye, Ogun State, told NAN that the new FOREX policy could be sustained to the extent that external reserves could sustain it.

Tella frowned at the lifespan of the policy, adding that every good policy was characterised by its ability to be sustained for a longer period.

He urged the Federal Government to dialogue with the monetary policy formulators to ensure a reduction in the nation’s benchmark interest rate.

The financial expert argued that lowering the lending rate would encourage small businesses in need of expansion to borrow money at a low cost, thereby increasing the capacity of the nation to earn foreign exchange.

NAN reports that since the CBN rolled out the new FOREX policy, the Naira had continued to strengthen dramatically against the greenback and other major currencies.

Sustaining the gains of the policy became a subject of debate among scholars and stakeholders in the foreign exchange industry.

NAN.