Skip to main content

Naira drops to 493 as dollar demand rises


The naira fell further against the United States dollar at the parallel market on Friday to 493, from 490 on Thursday as increased dollar demand weighed on the market.



Forex traders said the local unit plummeted following an increased demand for the dollar and other hard currencies by parents seeking to pay school fees of wards studying overseas.

The naira had closed flat against the dollar at the official interbank window and at the parallel foreign exchange market last  Tuesday, the first official trading day of the year.

It closed at 305 to a dollar at the official window, the same rate it closed on the last working day of 2016, while the local currency closed at 490/dollar on the black market.

The naira had similarly closed at 490/dollar on Friday, the last official trading day of 2016.

“In the week ahead, we expect pressure on the naira to linger, especially at the parallel market, as unmet demand from the official market continues to stoke imbalances,” United Capital had said in a research note to clients on Tuesday.

The local currency also closed flat at 490/dollar last Wednesday and Thursday at the parallel market, before recording loss on Friday.

Economic and financial experts have expressed divergent views over the outlook of the naira this year.

The naira beat analysts’ expectation and closed the year 2016 at 490 against the dollar at the parallel market.

Due to the persistent pressure on the naira, currency and financial analysts had predicted that the local currency would hit 500/dollar on or before the new year.

The naira has been under severe and continuous pressure as the scarcity of the US currency continues to create ripples in the financial markets and economy.

The CBN had about two weeks ago sold about $1bn on the forward market to clear a backlog of dollar obligations in selected sectors.

Traders said the CBN told banks to prioritise airlines, manufacturing firms, petroleum products importers and agriculture, the sectors worst hit by the dollar shortage, in the auction.

The CBN has struggled to support the naira as the country’s external reserves continue to fall.

Comments

Popular posts from this blog

Music: MrEra - Dance mp3

Emmanuel Richard Angaye, known for his stage name Era, is a Nigerian based singer and songwritter.  He dropped his first single tittled ''APROKO'' . Here comes his latest single, tittled ''DANCE'', Prod by Dj Howlbert OTB.
I bet you, your gonna love this one.

DOWNLOAD

See the awesome magical device for pennis enlargement

the name of the device is Handsome Up and it goes for just 12,000 naira only.


If your penis is not big enough, you can use this magical device to increase it within two to four weeks and your penis will increase to 7.3inch.

The Niger Delta As A Microcosm Of Nigeria | Eugene Abels | TEDxPortHarcourt

Despite being abundant in human and natural resources, violence and decline in development prevail in the Niger Delta region of Nigeria. In this talk, Eugene Abels invites us to stop pointing fingers at governments, unite and reflect on our history and also, to change our thought patterns, attitudes and habits in order to create the community/nation we want.

A deliberate Change Agent and technocrat committed to international best practices who has in three decades traversed the Real, Banking and Public Sectors of the Nigerian Economy, Eugene Irefa Abels was born, bred and schooled in Port Harcourt, Rivers State, Nigeria. He hails from two oil producing Communities, Nembe and Finima and believes that they are a microcosm of the Niger Delta Region.

An exponent of the need to exorcise our Colonial past from the souls of our public servants and elected officials, he believes the art of governance has been reduced to the single person pronoun ‘I’ whereas ‘we the people’ holds no relevance.
An…