Naira Sags as Emefiele’s Presidential Ambition Stokes Pressure
Naira sags across the foreign exchange (FX) markets midweek as the Central Bank of Nigeria (CBN) Governor’s presidential ambition stokes demand pressures. At the Investors and Exporters Foreign Exchange window, Naira was sold for N418.75.
The local currency has suffered weight loss amidst the monetary policy’s FX market intervention. The parallel market rate inched higher to N595, according to channel checks, though it moderated to N593.
In 2015, the official exchange rate was N197 but low export receipts, high import bills and scarcity of dollar inflows have weakened the local currency which hit N420 per dollar in the official window in March. 2022.
Godwin Emefiele, the CBN Governor is allegedly making himself available to contest for his boss, President Muhammadu Buhari’s job in the next election under the ruling party.
However, some critics are asking Emefiele who is serving his second tenure to resign the appointment to face squarely its political ambition as required of public service officials. CBN Governor has moved to seek interpretation from the court.
Unlike past CBN Governor, Emefiele has been engrossed in partisan politics and has maintained good rapport with the government, thus widening the apex bank’s independence.
To keep his position as CBN governor while planning to swerve into actualising bids to rule Africa’s largest economy, Emefiele asks Federal High Court to stop the attorney general of the federation and the Independence National Electoral Commission not to take any action against him.
The market appears to be weighing the consequence of the CBN governor’s interest in partisan politics as the local currency continues to swing like a pendulum in the past days, rising and falling at the official and parallel markets.
On Wednesday, the naira falls by 0.12 per cent to N418.75 from N418.25 at the Investors and Exporters foreign exchange (FX) window while the local currency was exchanged at N593 to a United States dollar in the parallel market.
The open indicative rate closed at N417.70 to the dollar on Wednesday, according to market data while an exchange rate of N444.00 to the dollar was the highest rate recorded within the day’s trading before it settled at N418.75.
It was noted that the Naira sold for as low as 410 to the dollar within the day’s trading. A total of 115.78 million dollars was traded in foreign exchange at the official Investors and Exporters window on Wednesday. # Naira Sags as Emefiele’s Presidential Ambition Stokes Pressure