THE Central Bank of Nigeria (CBN), on Friday, announced new measures to curb currency speculation as part of an effort to defend the naira, even as the currency has hit new low.
The naira exchanged for between 192 and 194 to the United States dollar at the parallel market on Friday as against N188 to the dollar it sod earlier in the week at the same market.
It also exchanged for N294 to the pound and N236 to to the euro in the same market on Friday.
The currency has struggled against other major currencies since the CBN was forced to devalue it following pressure arising dwindling foreign exchange earnings through sale oil.
Crude oil prices have decelerated from above $100 a barrel to less than $60 a barrel.
The apex bank said in a statement that customers who purchase foreign currency through the interbank market or an authorised trader must use the funds within 48-hours.
“Failing (this), such funds must be returned to the CBN for re-purchase at the bank’s buying rate,” it said, warning that sanctions would be imposed on those who fail to comply.
The measure targets speculators who seek profit by buying up foreign currency in hopes that the naira will continue to fall.
Nigeria, Africa’s largest oil producer, depends on crude exports for 70 per cent of government revenue and some 90 per cent of its foreign exchange earnings.
The government has said that plummeting crude prices have put huge strains on revenue and have announced a series of measures to respond to the crisis.
Last month, the CBN devalued the naira by eight per cent to a new target rate of 168 naira to the dollar. But the currency’s street value was much weaker than that, with a dollar fetching more than 180 nairas.
Jonathan warned on Tuesday that Nigeria could be forced to cut further the amount of oil revenue it uses for government spending if the global crude price continued to plummet.
Abuja sets a benchmark oil price, which has been slashed to $65 from $78 earlier this year. Revenue from oil exports up to that price go into general government spending.
Crude prices have halved since June. US benchmark West Texas Intermediate (WTI) for January delivery was trading at $54.84 on Friday, while deals for Brent crude for February were done at $59.59.
Finance Minister, Ngozi Okonjo-Iweala, this week slashed the government’s 2015 growth forecast to 5.5 per cent from 6.35 per cent.
