Naira strengthens against dollar at interbank market
September 23
19:56
2016
The naira on Friday appreciated against the dollar at the interbank market, after sustaining losses for two days.
The Nigerian currency gained N5.28 to close at N307.79 from N313.07 posted on Thursday.
Trading at the bureau de change (BDC) segment of the market showed that the naira exchanged at N433, N550 and N472 against the dollar, pound sterling and the euro respectively.
At the parallel market, the Nigerian currency gained one point to exchange at N435, while it closed at N560 and N475 against the pound sterling and the euro respectively.
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However, traders at the market are optimistic that the naira will sustain gains at the market by next week as Travelex commences the sale of forex to BDCs.
It is the same subsidy scheme (and many will say scam), an economic calamity that is neither sustainable nor reasonable. Every banker, and perhaps every informed person, knows that with a gap of N120.00 between the interbank rate and the parallel markets, the funds obtained from the interbank market will mostly end up in the parallel market; people will sell them for huge profits.
We have removed fuel subsidy, yet we tell marketers the price or a range of prices that they must sell. On the back of that, we source FOREX for some ‘marketers’ by asking oil companies to directly sell FOREX to marketers nominated by NNPC, in a process that is neither competitive nor transparent, two essential variables for minimizing, even eliminating, corruption. We give all sorts of undeserved subsidies and tax holidays, significantly reducing our revenue, and at the same time we cry that our revenue has been reduced!