Naira stable at 378/$1 ahead of CBN monetary policy decision

The naira remained stable on Monday at the parallel market, ahead of the Central Bank of Nigeria (CBN) monetary policy committee (MPC) decisions on the economy.

The Nigerian currency, according to NAN, maintained N378 to the dollar at the close of trading on Monday afternoon, keeping same value as at Friday.

Also, the naira traded at N495 to the pound sterling, but weakened further against the euro, exchanging for N415, from N407 posted on Friday at the bureau de change (BDC) Segment of the market.

The naira continued a downward slope at the interbank segment of the market, hitting a spot rate of N309.84 to the dollar from about N300 posted on Friday.

Currency traders continued to rain counter accusations against dollar scarcity as explanation for the week performance of the Nigerian currency.

They said that activities at the market was slow, as industry players watched keenly in anticipation of the outcome of the monetary policy committee (MPC) meeting of the CBN that was underway in Abuja.

Harrison Owoh, an accountant and a BDC operator, said the naira might continue its back crawl until the CBN injected foreign exchange into the interbank market.

According to him, the interbank market has not accumulated enough foreign exchange to meet the huge demands on the dollar and other foreign currencies.

The accountant, however, expressed optimism that as soon as Deposit Money Banks (DMBs) began the sale of foreign currencies to BDCs, the naira would begin its journey towards appreciation.

Only on July 22, CBN issued circular mandating DMBs to sell foreign currency proceeds from international money transfers to BDCs.

It noted that compliance would lead to greater stability in the foreign exchange market; and it would also encourage critical stakeholders in the market to participate fully.