Naira stable at N450/$1 — first time in eight days

For the first time since eight days ago when the Central Bank of Nigeria (CBN) adjusted the foreign exchange policy, the naira maintained its rate of N450 to a dollar at the parallel market.

According to NAN, the pound sterling and euro crashed further at the parallel market, exchanging at N535 and N460 respectively, while the naira closed at N305.25 at the interbank window.

At the Bureau De Change (BDC) window, the naira was sold at N399 to a dollar, CBN controlled rate, while the pound sterling and the euro closed at N610 and N500, respectively.

Sheriffdeen Tella, a professor and senior economist at the Olabisi Onabanjo University, Ago-Iwoye, Ogun, told NAN that the new forex policy would last as long as the external reserves could sustain it.

Tella frowned at the lifespan of the policy, adding that every good policy was characterised by its ability to be sustained for a longer period.

He also urged federal government to dialogue with the monetary policy formulators to ensure a reduction in the nation’s benchmark interest rate.

The financial expert argued that lowering the lending rate would encourage small businesses in need of expansion to borrow money at a low cost, thereby increasing the capacity of the nation to earn foreign exchange.

The naira, which traded for as high as 520 before the announcement, has been gaining strength since CBN adjusted its forex policy.