Naira ‘stuck’ at 320/$1 despite permutations

The Nigerian currency, naira, has remain uninspiring at 320 to the dollar, neither rising nor falling significantly, through the week.

The naira, which was trading between 301 and 310 at about the same time last week, depreciated at the open of business on Monday to trade at 318 to 320.

Over the past month, the naira had numerous dramatic turns, falling to 390 against the dollar, with Capital Oil chairman, Ifeanyi Ubah, saying he could recover the naira to 200 against the greenback.

The naira inspiringly rose from 390 to 310, with some trading erratically at 280 against the dollar at the parallel market.

The interbank rate however stood close to its interbank peg, trading at 197.5 to the international dollar standard.

The Central Bank of Nigeria (CBN) has said that the naira would recover as soon as the 2016 budget is passed and implementation begins.

Joseph Nnana, the deputy governor, financial system surveillance of the CBN, at a meeting of the joint appropriation committees of the national assembly, assured Nigerians that speculators would get their hands burnt.

“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.”