The Central Bank of Nigeria (CBN) on Friday offered fresh 100 million dollars at the interbank market to meet customers’ demands.
However, the News Agency of Nigeria reports that the dealers were only able to pick about 81.35 million dollars.
The Acting Director, Corporate Communications, CBN, Mr Isaac Okorafor, in a statement, attributed the inability of authorised dealers to pick up the entire offer of the CBN to increasing dollar supply.
He said another reason was the current sense of apprehension among dealers who anticipate a further crash in the rate of the dollar.
He reiterated the determination of the Bank to sustain its current interventions in the market.
“Those who doubt the capacity of the Bank to sustain the intervention in the FOREX market are beginning to have a change of mind,” he said.
Meanwhile, the Naira has sustained its optimistic ride against major currencies, especially the United States dollar, which exchanged at about N380 in Abuja, and N385 to N390 in Lagos market.
At the Bureau De Change (BDC) window, the Naira was sold at N399 to the dollar, while the pound sterling and the Euro were sold at N500 and N400.
The Nigerian currency appreciated at the interbank market, closing at N307 to the dollar.
Traders believe that the continued intervention by the CBN have triggered further apprehension among speculators, who anticipate further losses given the continued crash of the dollar.
Some BDCs in Abuja stopped selling dollar due to the current price in order to curtail further losses, but they were opened to customers willing to sell at N370 to a dollar.
An Abuja-based BDC operator, said besides the dollar sales by the CBN, steady supply have been coming in from individuals who had once hoarded the currency for whatever purpose.
The President of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, said that appreciation of the Naira, especially in Abuja though good, was causing panic among BDCs.




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Is time for CBN to converge all rates in same place an equilibrium price should determined this is because the parallel market rate of 380 is almost the rate at which bank sell PTA which 375 and the CBN should reduce the spread between interbank and selling rate by banks the present 20% is very high infact the highest in the world at best it should be 5% just imagine the CBN give them dollars at 315 and they sell at 375, now if parallel market will sell at 375 too no one will go to bank bank buy because there is limit, trail or much documentation unless the banks drop their rate too thereby competing with the BDC for customers which will lead to drop in price, during the soludo and even sanusi era spread by BDC are hardly 5% sometimes just 2%.


Those saying we should float the naira should have a rethink, most nations defend their currency, floating your currency is like opening up the borders of your country no customs, no immigration, no visa, no duty everyone and everything enters at will. Assuming Nigeria is a major multi product exporting country floating may be ok, but as it is our major export is oil which is very volatile, believe me if we float speculators will run this country down dollar will be N1000 in no time.

@$50 per barrel Nigeria earn about $110M daily let's say 40% goes to the JV that means we will be left with $66m daily, I recommend a 50-50 approach between reserve and injection into the economy that means every week about $220M will be injected and $220M will be saved in the reserves. I believe the present intervention by CBN is necessary and very sustainable if there is the political will.

nemesis and karma are dealing with these dealers.they made alot at d xpense of nigerians and now the are losing more than ever.

The dealers bought dollars at higher price,only for dollars to fall below xpectation.hoarder are releasing theirs,but dealers dont want to buy from dem,except at a very low price.while buyers are now the kings with different choices

OK!

I don't posses much knowledge on how this forex stuff works wanted allowing the girl above me explain But her case is worst even the guy below me makes it even harder.

Let me go watch tom and Jerry cos this entirely won't plunge the dollar story.

Taaaaaa!

Slow and steady wins d race. Surely we will get dia.

OK. maybe they need this 3MYVFDS

Naira has sustained its optimistic ride against major currencies, especially the United States dollar, which exchanged at about N380 in Abuja, and N385 to N390 in Lagos market. So what do we do now.. Fry beans?

Yoruba: Shout on phone
Hausa: Dial wrong number with the phone
Igbo: Lie on phone
Calabar: Steal the phone

It is a shame that with all the brains we have in this country this is where we found our selves today.

In my opinion, CBN pumping dollars in the economy is a rubbish idea, voodoo economics.. Whose idea was it anyways It is a shame.

Before you start quoting me, let's reason this,

1. People talk about Forex this and that, Is Nigeria the only country that its citizens operate FOREX?

Why aren't all other countries currency down the toilet as well?

2. People say because we import more and export less. Yes that might be one of the reasons but let me tell you sth. Do you know almost everything sold in the U.S is imported? Yes I kid you not, Iphone is designed in California but produced in China.

The U.S import Bananas, Plantains, Pineapple, coconut Yes.. People living in the U.S, check the label on the bananas at Walmart, Kroeger or which ever grocery store you go.. The label would read most times, From Honduras, Guatemala, Costa Rica or some other south American country.

Also, the U.S import tooth picks, I kid you not, I was surprised when i purchased one and the label reads made in China.

You could disagree with me if you like but the main issue we have is over dependency on foreign currency.

There are some law offices that charge their clients in dollars, some government officials/ contractors are paid in USD.

Even some business, schools etc. Accept only USD as a form of payment.

Why would USD be accepted as a legal tender in Nigeria You couldn't use GBP in the U.S.

Likewise, you can't use USD in GB.

The implication of some business using USD as a legal tender is that, those businesses that accept Dollars from their clients, they pay their employees in Naira and make their office purchases in Naira.

They are indirectly running a BDC. Recall, when clients and the government go and source dollars from banks to pay those busineses , contractors and personnels. Then those business pay their employees in Naira and make their purchase in Naira. At a point banks will run out of dollars and what happens?

Economics 101, scarcity of dollars.. Then those dollar businesses will start selling their stash at a higher rate.

Does anyone recall the NNPC guy that they found $10m cash in his house? How much was recovered from those judges Diezani Plus lots of others we don't know about.

Have we ever asked ourselves, CBN have pumped almost $1bn into the market since this year and still pumping where is the money going

HAH:
Is time for CBN to converge all rates in same place an equilibrium price should determined this is because the parallel market rate of 380 is almost the rate at which bank sell PTA which 375 and the CBN should reduce the spread between interbank and selling rate by banks the present 20% is very high infact the highest in the world at best it should be 5% just imagine the CBN give them dollars at 315 and they sell at 375, now if parallel market will sell at 375 too no one will go to bank bank buy because there is limit, trail or much documentation unless the ban drop their rate

Well said

Dollar sales that has so many conditions attached, is that one dollar sales

scam

All of una wey go bury dollar inside soakaway, I hope una still leave am dere cos e go rotten inside dere begin smell.

Enemies of state and their beer parlour analyses.

no wayo

All i can say as a forex trader is that when this government gets tired of using the money gained from making nigerians suffer, then the dollar will still overrun the naira. Liquidity is unchanged , still at 85%.

Great news.

These abokis are the major reason dollar is over priced in nigeria,because we are not the only import base economy in d world

Bank rate for PTA should drop as well

I'm loving this present trend of dollars crash. I pray for a further crash, we can't afford to continue with how the BDC has held us hostage for this long. God bless Nigeria.

Eiyah! Abeg when wil d price of comodities come down?

Going by what this government met on ground, they have done absolutely nothing..

This was a good measure done a little too late, the prices might eventually rest between 350-360. Just imagining how good we would have had it if this CBN intervention had come in earlier (around 400) ,not when it got to 520.

Nusaf:
Enemies of state and their beer parlour analyses.

Don't be daft man..
Was is enemy of the state that made policies that increased the price of dollar and other commodities in the 1st place.
The state "government" is its own very enemy..

HAH:
Is time for CBN to converge all rates in same place an equilibrium price should determined this is because the parallel market rate of 380 is almost the rate at which bank sell PTA which 375 and the CBN should reduce the spread between interbank and selling rate by banks the present 20% is very high infact the highest in the world at best it should be 5% just imagine the CBN give them dollars at 315 and they sell at 375, now if parallel market will sell at 375 too no one will go to bank bank buy because there is limit, trail or much documentation unless the ban drop their rate

Am telling you. Why not reduce the rate to 10 percent since the parallel market is catching up already with bank selling price. Even the article said BDC are willing to buy @ N370 from speculators which is N5 below the approved N375 selling price @ banks.

Another thing that drew my attention on the article is BDC are willing to buy but don't want to sell in order not to incur further loss. The question is where do they get the liquid to purchase these dollars except if they are into big business sha probably through commodity trading.

To be honest, if these dollars used in defending naira are used for infrastructural development such as power, road, housing and water projects, the country will attain it's projection in a short run but with this current CBN intervention, it's going to take a very long time as development will be slowed down.

When the BDC have been making gain nearly hour by hour whom do they tell,.they should they were making mockery of the PMB government then.They should shut their mouth .God will help Nigeria out of exchange rate palaver

When the BDC have been making gain nearly hour by hour whom do they tell,.they were making mockery of the PMB government then.They should shut their mouth .God will help Nigeria out of exchange rate palaver