TheCable

The Nigerian naira failed to respond to the euphoria that came with the signing of the 2016 budget by President Muhammadu Buhari.

The budget, which was signed four months and two weeks after presentation, inspired hope in the Nigerian people, but the naira will have none of that, at least for now.

The naira traded at 321 in Kano on Friday, and sellers are trading at relatively the same price on Saturday.

In Abuja however, the naira traded between 321 and 322 from Thursday till Saturday.

Pounds was also trading between 464 and 467 in Nigeria’s commercial cities – Lagos, Kano, Abuja and Port Harcourt.

Speaking at the budget signing on Friday, Buhari said his government, “like no other”, would change the Nigerian economy.

“This government is like no other. We are absolutely committed to changing the structure of the Nigerian economy once and for all,” he said.

Joseph Nnana, deputy governor, financial system surveillance of the CBN, had earlier said that the naira will rise once the budget is passed.

“Distinguished chairman sir, we have $20bn lying idle in various domiciliary accounts of many customers at the various banks across the country,” he had said.

“This is part of the reasons why the naira has continued to slide against the US dollar. The CBN will embark on aggressive liquidity mop-up to enable the naira regain confidence.

“The CBN will not sit down and watch the consistent fall of the naira. After the passage of the 2016 budget, the naira will begin to bounce back. Those who speculate on dollars will have their fingers burnt.”

The naira has shown no reaction to the signing of the 2016 budget, however, analysts believe that the naira will “marginally recover” against other foreign currencies through the implementation process.