Currency dealers are refusing to show quotes to sell the dollar after the Central Bank of Nigeria (CBN) vow to crack down on speculators in a bid to stop the naira from depreciating, traders have said.
The CBN said it was collaborating with the Nigerian Financial Intelligence Unit (NFIU) to uncover speculation and would charge such dealers for economic sabotage. The apex bank added that market fundamentals did not support a devaluation.
Also, the naira was quoted at N370 per dollar a week ago versus 366.5 two weeks earlier. On the black market the naira traded at N375 while it steadied at 307 on the official market supported by the CBN, Reuters report said.
Traders were yesterday willing to buy dollars between N368 and N370 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.
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.
JP Morgan analysts have said they expect the naira to be devalued by around 10 per cent to 400 naira per dollar by the end of June.
