Naira To Rise As Banks Reject US Dollars

Deposit Money Banks in Nigeria have continued to reject cash deposit of foreign currencies into customers’ domiciliary accounts.

 

The Naira notes

Commercial banks started denying their customers the opportunity to make cash deposits of dollar, pound and euro into their domiciliary accounts from last week following the appreciation of the naira against the dollar from 245 to 220.

A foreign exchange source told The Punch correspondent on Sunday that the naira would most likely appreciate further against the dollar at the black market this week. In his words he said: “We expect the naira to appreciate further this week at the parallel market. Banks have flooded the market with dollars and other foreign currencies. This is making the naira to appreciate. There is still a huge stock of dollars out there that the banks will be pushing into the parallel market this week.”

While talking to The Punch correspondent last week, Ladi Balogun, CEO First City Monument Bank (FCMB) said “Banks no longer accept dollar cash due to large speculation on the currency.” While stressing that lenders would continue to receive dollar transfers from other banks.

Godwin Emefiele, Governor of Central Bank of Nigeria (CBN) had said two weeks ago said the naira was “appropriately priced” at its current level of 197 to the dollar on the interbank market.

Emefiele has refused to relent while saying that the central bank could not adopt an “indeterminate policy” of currency depreciation. This restrictions have frustrated investors and companies that need dollars for importation.

Source: The Punch