Naira Continues To Rise As Banks Snub Dollars

The Nigeria currency (Naira) has continued to thrive against the US dollar this week as Deposit Money Banks reject cash deposit of foreign currencies.

According to a source, the Nigeria’s currency had appreciated against the dollar from 245 to 220 at the parallel market last week after banks started denying their customers opportunity to make cash deposits of dollar, pound and euro into their domiciliary accounts.

A nameless forex trader on Sunday 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.”

The president of Bureau De Change Operators, Alhaji Aminu Gwadabe further revealed that the large amount of dollars in the market would make the naira to appreciate further at the parallel market this week.

Over the past year the naira lost about 15 % against the dollar with an official devaluation in November.

If we recall, last week, Nigerian banks announced that they would no longer collect cash deposits into domiciliary accounts.