ABUJA (Sundiata Post) – Naira on Wednesday maintained its stability, closing N315 against the US dollar at the autonomous market, the same since Monday this week, Sundiata Post findings show. It was also stable at the parallel market closing at N320/$.
The local currency appreciated in value against the dollar, gaining N0.82k or 0.41 percent at the inter-bank foreign exchange market. It closed at N198.51/$ compared to N199.33/$ the previous day at the same market, according to data from FMDQ.
However at the CBN’s clearing rate on the inter-bank market on Wednesday, naira remained unchanged at N197/$, data from FMDQ indicated.
Meanwhile, Nigeria plans to raise N100 billion ($503.02 million) in local currency denominated bonds with maturities ranging between 5 and 20 years on March 16, the Debt Management Office (DMO) has said. The debt office said it would raise N40 billion at par in the local bond maturing in 2036, N40 billion of the paper maturing in 2026 and N20 billion of the debt maturing in 2020 on Wednesday, according to Reuters.
The 2026 and 2020 maturing notes are reopenings of previously issued paper, while the 2036 maturing note is a fresh issue.
President Muhammadu Buhari has rejected calls by the International Monetary Fund to lift foreign exchange curbs and allow a more flexible rate for the naira currency, backing the central bank’s actions.
The tight dollar restrictions have forced domestic lenders to delay hard currency loan and trade repayments to foreign banks and increased the risk of default, bankers say.
Foreign funds fled Nigerian assets as the oil price decline worsened, further weakening the naira and helping fuel inflation which is currently outside the central bank’s target range at 9.6 percent.
Nasir el-Rufai, governor of Kaduna State, Ibikunle Amosun, governor of Ogun State, and Umaru Tanko Al-Makura, governor of Nasarawa state, who spoke at The Economist of London Nigeria Summit on Tuesday in Lagos disagree on the call for naira devaluation.
“I am against devaluation now. I have not seen the benefit to the economy. We export nothing and import all. We have FX scarcity but devaluation is not the only solution. It has not worked. I have seen inflation imported but no benefit of devaluation to Nigeria. The only benefit is the removal of corruption in the system”, el-Rufai said.
banker of the day - FREE banker tips from experts