Investing.com - Financial Markets Worldwide
Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Nigerian currency dealers refuse to show naira quotes after vow to crack down on speculators

Published 19/03/2020, 13:31

By Chijioke Ohuocha
ABUJA, March 19 (Reuters) - Nigerian currency dealers are
refusing to show quotes to sell the U.S. dollar after the
central bank last week vowed to crack down on speculators in a
bid to stop the naira from depreciating, traders said on
Thursday.
The central bank last Thursday said it was collaborating
with the Nigerian Financial Intelligence Unit (NFIU) to uncover
speculation and would charge such dealers for economic sabotage.
The bank added that market fundamentals did not support a
devaluation. The naira has been easing on the over-the-counter market on
fears of a possible devaluation in the wake of an oil price
collapse that has worsened dollar shortages in Africa's biggest
economy.
The currency was quoted at 370 per dollar a week ago versus
366.5 two weeks earlier. On the black market the naira traded at
375 while it steadied at 307 on the official market supported by
the central bank.
On Thursday traders were willing to buy dollars between 368
and 370 naira on the over-the-counter market but there were no
sellers, they said, as liquidity was tight and traders were
weighing central bank's threat.
"I haven't been able to buy dollars in the last two or three
weeks, the market is tight," one trader said.
JP Morgan analysts have said they expect the naira to be
devalued by around 10% to 400 naira per dollar by the end of
June.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.