Naira Wobbles as Nigeria Suspends Godwin Emefiele
The naira wobbles across the foreign exchange (forex) markets as Nigeria suspended its apex bank chief over the investigation into alleged terrorism financing, and planned foreign exchange reforms.
Naira fell to N472.50 versus the United States dollar at the investors’ and exporters’ foreign exchange window, closing the week in the red after it maintained its cool for the first three days.
On Thursday, the exchange rate declined significantly to N469.50 per US dollar. It lost about N5 in a day following the Central Bank of Nigeria’s (CBN) denial that it has devalued the local currency to N630 after market intervention sales.
According to market data seen by MarketForces Africa, the open indicative rate closed at N471.32 to the US dollar on Friday. Traders said an exchange rate of N477 per US dollar was the highest rate recorded within the day’s trading before it settled at N472.50.
The local currency sold for as low as 460 to the dollar within the day’s trading. On Friday, 77.42 million US dollars were traded at the official Investors and Exporters FX window.
Data from the FMDQ Exchange platform quoted the Nigerian Autonomous Foreign Exchange Fixing rate at N471.40, a distance away from the spot rate at the Investors and Exporters FX window.
Broadstreet analysts maintained that the local currency is trading above its fair value and needs to be devalued. However, Emefiele maintained no devaluation stance by supporting the naira with FX auction sales to market dealers – local banks and other authorized financial services institutions.
President Bola Tinubu has suspended Emefiele from office with immediate effect, the Director of Information, Office of the Secretary to the Government of the Federation Willie Bassey said in a Friday statement. #Naira Wobbles as Nigeria Suspends Godwin Emefiele Naira Steadies as Banks Issue Update on FX Purchase