Nigerians perplexed at the endless slide of the naira — Rewane

By ODUNEWU SEGUN

THE Managing Director of Financial Derivatives Company Limited, Bismarck Rewane has expressed dissatisfaction with the falling value of the naira against the United States dollar which now stands at N330/$1.

He said it was high time the CBN came up with a forex policy that would address the forex crisis confronting the nation. “Nigerians are perplexed at the endless slide of their currency, which is now trading at N325/$, the lowest point ever. “This is happening even when the oil price is up at $31pb. The debate as on whether to devalue the naira is not the real issue. The discourse should be whether we need an exchange rate policy or not.

The absence of a policy is a recipe for economic anarchy and a race to the bottom.”
This latest drop in the value of the naira might not be unconnected with the decision of the Bankers Committee last week to stop providing foreign for Nigerians studying abroad and also for those seeking medical attention abroad.

ALSO SEE: NIgerian naira hits record low of 345 per dollar

According to forex dealers, the continued shortage of forex in the economy and the Bankers Committee’s sudden decision had combined to increase demand for the United States currency. “The negative perceptions about the naira and the demand for forex by importers who have overseas obligations have caused the demand pressure.

It would be recalled that at the last Monetary Policy Committee meeting in last month, the CBN left the official exchange rate unchanged at N197 to the dollar on its official interbank window. “We see the naira falling further in coming days if the central bank fails to lift the dollar restriction,” the Acting President, Association of Bureau De Change Operators, Aminu Gwadabe, had said.

Tumbling global oil prices have battered Nigeria’s oil-dependent economy, with external reserves down to an 11-year low at $27.89bn on February 9, Reuters reported. President Muhammadu Buhari is concerned that further depreciation will hurt poor Nigerians, but the CBN’s refusal to revise the pegged exchange rate has widened a chasm between official rate and the parallel market. Last month, the central bank halted dollar sales to the BDC operators and allowed commercial banks to accept dollar deposits, in a failed effort to shore up dwindling foreign reserves.