British Pound Sterling To Naira

Naira Falls to N780 Against British Pound, Heads Towards N800 to £1

Last Updated on September 27, 2021 by Ope Quadri

The naira continues to fall in the foreign exchange market even as abokifx, which was accused by the Central Bank of Nigeria (CBN) of “being responsible” for the bad performance of the naira against major foreign currencies.

At the time of this report, the British Pound Sterling was selling for N780 at the parallel market while the US dollar went for N576 or N570, depending on the location.

On September 17, Godwin Emefiele, governor of Nigeria’s apex bank had accused Adedotun Oniwinde of using Abokifx to manipulate the rates at the parallel market to make huge gains, an allegation he denied.

Abokifx had responded by saying it would remove update of rates on its website, “if that would make the naira to regain it value””

Since then, nothing has changed, the stoppage of sales of weekly forex to the Bureau De Change operators on July 27 is partly attributed to the artificial scarcity of the Pounds and dollars in the market.

But the CBN vowed that it would not rescind its decision, stating that Nigerians who legitimately need forex should approach financial institutions with the required documents to obtain PTA, BTA, medical foreign treatment, and payment of foreign school fees.

Since banks were mandated to take up the roles of exclusively selling forex to travellers, some dubious individuals had been caught for using forged VISA or air tickets to buy PTA at cheaper rates and sell such at black market, their bank details and names of the affected people had been published by UBA, other banks promised to do the same.

Will the ban of abokifx ever change the value of naira?

Abokifx is an entity that can’t control so much power than the CBN at the forex market, as such everyone expects the apex bank to go back to the drawing board to adjust its fx policies.

Besides, some financial analysts are asking: Why would the CBN be selling forex to BDC operators in the first place?

Going by how the market reacts to policies rather than banning an entity, the naira may continue to fall until the CBN implements policies that would make naira regain its value.

Banning abokifx can never make naira regain its value against the USD or British pound.

If there is anyone on the hot seat right now, it’s Godwin Emefiele as he continues to struggle to maintain a balance between satisfying the ruling party and creating a legacy that Nigerians would never forget.

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