Foreign exchange dealers on Sunday, August 2, 2015 revealed that Nigeria’s currency is set to rise further against the United States dollar at the parallel market this week following the continued refusal of cash deposit of foreign currencies into customers’ domiciliary accounts by Deposit Money Banks.
The naira had weakened on the parallel market, falling as low as 245, on persistent dollar shortages after the central bank last month limited importers’ access to dollars in order to save the external reserves.
In the course of last week, the naira appreciated from 245 to 220 against the dollar at the parallel market after banks refused to accept cash deposits in dollars, pounds and euros from customers.
Speaking on the condition of anonymity, a forex trader 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.”
Furthermore, the Acting President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, expressed hope of the naira appreciating further this week as a result of the large amount of dollars in the market.
