Currency speculators from Chad, Ghana, Benin Republic and other neighbouring countries yesterday trooped to Nigeria in a scramble for cheaper dollars. The speculators took advantage of the early morning drop in dollar rates — at N202 to the dollar in Abuja and N210 in Lagos — to make brisk purchases.

Business reports disclosed that the greenback recovered late afternoon to close at N208 and N222 in Abuja and Lagos. Banks have been rejecting dollar deposits across the counter, but inflows from foreign accounts are allowed. They lenders said they are unable to transfer excess liquidity to their correspondent banks overseas which are restricting importers from using domiciliary accounts.

Association of Bureau de Change of Nigeria (ABCON) President Aminu Gwadabe said that the rejection of dollar deposits was still ongoing and was marginally changing the status of the local currency. “Banks are rejecting dollar deposits. They are not able to transfer excess liquidity to their correspondent banks abroad which is restricting importers from using domiciliary accounts,” he said.

This is what is going to drive the exchange rate now and beyond. We cannot isolate what is happening in the global economy like the issue of diversification of energy sources,” Gwadabe said.

Voltic Togo