Speculative effect worse than economic factors on the naira – Expert

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Institute of Credit Administration chief executive Professor Chris Onalo said the negative effect of speculators on the naira is greater than other economic factors.

In an interview with our correspondent, he said: “This is one of the biggest economic problems facing the Central Bank of Nigeria; how to tame the disparity of the naira and the dollar.

“Why this is difficult is because there are powerful forces sabotaging the efforts by speculating and cleaning up the country’s forex.”

While stressing the need to build political will to meet the challenge, he said Nigeria should be allowed to exist as the continued speculative activities against the naira put many Nigerians in hardship.

Meanwhile, the naira traded for a dollar at 580 on Tuesday, while the pound was trading at 780 on the parallel market, some parallel market operators said.

According to them, while the naira against the dollar was bought and sold at 575 and 580, the pound sterling was bought and sold at 775 and 780.

At the Forex I&E window, the naira peaked at 415 to close at 414.50 on Tuesday.

As part of efforts to resolve the naira crisis, CBN Governor Godwin Emefiele recently hit abokiFX hard, after accusing the website and its owner of manipulating the currency to sabotage the economy.

This forced abokiFX to suspend the publication of exchange rates.

Emefiele said, “Our preliminary results show that its website is being used for currency manipulation and speculation purposes.

“They get naira notes, use them to buy dollars, take a position, change the rate over a period of time, sell the dollars they buy and make a profit. It is completely illegal, it is unacceptable and we are going to prosecute them. “

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