Naira rallies at parallel market

  • Body wants CBN probed for N55b fund


THE Naira yesterday gained 50 kobo to firm against the dollar at the parallel foreign exchange market, exchanging at N361 to the dollar.


This marks a stronger rally than the N361.50 it traded on Tuesday, while the Pound Sterling and the Euro closed at N488 and N423, respectively.
At the Bureau De Change (BDC) window, the naira was sold at N360, while the Pound Sterling and the Euro closed at N488 and N423, respectively, with trading at the investors’ window seeing the naira close at N361.10.


Similarly, naira exchanged at N305.90, N402.26 and N360.75 against the dollar, Pound Sterling and the Euro, respectively at the CBN window, while it also traded at N47.74 and N23.2 against the Chinese Yuan and the South African Rand.

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Foreign exchange operators say naira is set to appreciate significantly at the parallel market as the Nigeria China swap deal takes effect, predicating their prediction on the reports that Nigeria entered into a $2.4 billion with the People’s Republic of China.
The CBN noted that the deal would finance trade and direct investment between China and Nigeria, and maintain financial market stability, among other benefits.


Meanwhile, the Consumer Price Index (CPI) which measures inflation increased by 11.61 per cent (year-on-year) in May 2018.
According to National Bureau of Statistics (NBS), this is 0.87 per cent points less than the rate recorded in April 2018 (13.34) per cent and represents the sixteenth consecutive disinflation since January 2017.

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The composite food index rose by 13.45 per cent in May 2018 compared to14.80 per cent in April.
“All-items-less-farm-produce” or core inflation index, which excludes the prices of volatile agricultural produce stood at 10.7 per cent in May 2018, down by 0.2 per cent from the rate recorded in April (10.9) per cent.

However, a financial interest watchdog, the Centre for Anti-Corruption and Open Leadership (CACOL), has urged the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to probe the Central Bank of Nigeria (CBN) over allegations that N55billion allocated for the funding of the Federal Government’s Anchor Borrowers Programme (ABP).

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Executive Chairman of CACOL, Debo Adeniran, made the call yesterday while expressing fears that the money may have been misappropriated.
He urged ICPC to invoke its powers under section 6 (b) of The Corrupt Practices and other Related Offences Act 2000 to investigate CBN.


“The misappropriated fund which ought to have been used to finance the Federal Government’s plan to boost rice production across the country in pursuit of the nation’s self-sufficiency agenda for this staple crop, now appears to have been jeopardized due to the activities of corrupt elements and their accomplices within the Central Bank of Nigeria,” Adeniran.


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