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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.

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