Naira may be on course to regain N1000/$ in the near time if the current bullish outlook of the market is sustained.
Both circulars, market analysts, are optimistic could trigger the dumping of foreign currencies by remnant speculators, who are still holding on the tread, in the coming days. With the operators expected to give to end users at a ceiling of 1.5 per cent margin, the dealers are not expected to sell above N1,117/$.
This would be the third sale of FX to BDCS after the Godwin Emefiele interregnum, which followed the freezing of the BDC segment in 2021. The suspension was lifted some weeks ago with the apex bank rejigging the operating template. That suggests that the CBN discounted rate was higher than the black-market rate. If the same trend, fuelled mainly by panic sales, continued into the week, the dollar may exchange around N1100/$.Its current rate is lower than the three-month moving average , according to data tracked by The Guardian. Some experts said the downward movement of the dollar against the naira is becoming entrenched – a suggestion that the local currency crisis could be out of the woods.
At press time, it was not clear whether the move would support the cause of stabilising the naira and unlocking FX liquidity. However, some experts suggested it could help to reduce official abuse of the naira and reduce rent-seeking behaviours. Dozens of multinational companies, who are known for pledging foreign currency-denominated collaterals for domestic loans, may in the coming weeks, be asked to renegotiate their loans. The calls could stress-test banks’ relationship with many of the multinational companies, The Guardian understands.
“If the credit is properly perfected, it means the lender can foreclose the collateral in case of default,” Adonri explained, insisting that foreign currency-denominated assets are perfect collaterals and even more superior in many cases. The United Nations Development Programme has offered N200 million in support to Micro Small and Medium Enterprises in Bayelsa State.The festering crisis in Rivers State seems to have no end in sight, as Governor Siminalayi Fubara, yesterday, reminded his political foes that whatever political powers they claim to have without the support of the people and the state where they come from amounts to nothing.
Source: News Formal (newsformal.com)
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