The naira appreciate in value against other major currencies after yesterday’s bidding session at the Foreign Exchange Market (FEM).
An exchange rate of N3.500 to $1.00 emerged as the rate for sale of foreign exchange for the next two weeks.
This agrees with The Republic prediction yesterday that the return of the new banks will not induce a fall in the value of the naira, rather it would lead to stiffer competition among baks which will enhance better customer services.
The 47 banks operating in the country bid for $100m offered for sale.
At the end of the session all participated banks were not only successful but got all the Foreign Exchange they demand.
The bid rates were fairly high with the highest bid rate of N4.399 to the dollar coming from First Intersate Merchant Bank. The second highest was that of Federal Saving Bank whose bid rate was N4.23 to the dollar.
… New banks hail govt decision
The lifting of the ban imposed on 11 young banks operating in the country by the Federal Government has been hailed by some of the affected banks.
In an opinion poll conducted by The Republic, the affected banks, which spoke on the issue aw it as a courageous decision.
At the Financial Merchant Bank, Mr. Adio said, “we are happy to be back to the foreign exchange market. Whoever took the decision to accept us back meant well. It takes lots of courage to reverse decision, Mr. Adio said.
He said that the decision portrayed the government as one that was responsible to public opinion. He said the decision was a great relief to both the affected banks and their customers. The bank customers, he said, were already looking out elsewhere and with the lifting of the ban, customers would now restore confidence in the affected banks.
