Naira falls to 390, foreign reserves on a downward streak
The naira has continued its downward trend, falling further to 390 to a dollar as against its 385 stand at the close of business on Thursday.
Also, the nation’s foreign reserves took a break from its upward journey, losing about $52 million to stand $30.296 billion from $30.348 billion.
The liquid amount in the reserves is about $29.6 billion and about $674 million being blocked.
The foreign reserves hit $30 billion weeks back – for the second time since President Muhammadu Buhari assumed power in May 2015, and reached its highest point since October 2015.
The naira, which closed at 410 to the euro on Thursday, now trades at 415 to the same currency and at 485 to the British pound as against its last closing price of 470.
The Central Bank of Nigeria (CBN) has made efforts to salvage the situation of the naira by easing foreign exchange policies thus providing forex to cater for tuition, travel and medical expenses.
Since the announcement, the CBN has pumped more than $2 billion into the market to ensure convergence of all segments of the market.
On Thursday, the apex bank announced that it had increased the foreign exchange amount to be sold to bureau de change operators to $10,000 per week from the initial $8,000.
It also said that it would announce new rate for BDCs.
CBN should not sell Foex to BDCs, the BDCs have not been acting in the Nigerians best interest.
The BDCs are part of the problem..i called several of them in March and only one responded well though he didn’t have. The others refused to pick calls or sell when you let them know you wanted to buy. I believe they are part of the round trippers. CBN should focus and monitor the banks as sellers.