Naira Skids as 24hrs Banks FX Offload Disappoint
The Naira depreciated by 0.43% against the US Dollar in the Nigeria autonomous window, closing at a rate of ₦1461.90 as foreign currency scarcity persists. There is a signal that deposit money banks 24 hours FX sales requested by the apex bank failed to upturn FX scarcity at the official window.
Local deposit money banks were asked to offload their excess foreign currency asset to meet the new guideline released by the apex bank. Some analysts and insiders in local banks told MarketForces Africa that the request is rather impracticable.
MarketForces gathered that some banks hold their foreign currency assets in non-liquid form. This may require time to allow deposit money banks to convert such to cash.
Banks have been accused of negative FX practices to boost their returns. MarketForces Africa learned that some local lenders are already negotiating for an extension of the timeline for compliance with a cap on FX asset holdings.
In reaction to the new FX reforms move by the Central Bank, the Bureau De Change (BDCs) operators have also halted FX sales following the removal of FX speculative options. Banks Face Risks over 24hrs FX Positions Sell Down
The naira remained at the N1,400 mark against the US dollar to close at N1,461.90 per dollar from N1,455.59 to the dollar. Similarly, In the parallel market, the Naira closed at N1,410 against the dollar.
In the global commodity market, WTI crude futures advanced by 1.18% to $76.74 per barrel on Thursday. Also, the Brent Crude closed higher at $81.46 per barrel. #Naira Skids as 24hrs Banks FX Offload Disappoint
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