Business Naira: How New Interbank Market Influenced Parallel Market Rate - BDC President

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LequteMan

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The Naira on Monday depreciated marginally against the dollar, exchanging at N346/$, the President of the Association of Bureau De Change Operators of Nigeria, Alhaji Aminu Gwadabe, has stated.

This follows the launch of the interbank market by the Central Bank of Nigeria, CBN on Monday.

According to Gwadabe, the naira fell to 346 against the dollar at the parallel market, because “the interbank market has not effectively taken off.”

“There is no way demand can reduce at the parallel market now because the 41 imported items are still banned from accessing official forex market,” he said, adding that the backlog of dollar demand was far higher than $4bn.

“Up untill now, many correspondent banks have yet to send their unmet obligations to the Central Bank of Nigeria. And for the foreign inflow that we are expecting, there is still lack of confidence by the investors as to how liquidity is going to be sustainable so that when they want to move out, they won’t have the problem of dollar scarcity. So, they are watching to see how liquid the market will be, and that will take a couple of weeks before this can be unravelled,” Gwadabe explained.


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