ifyan:

The naira, which rose to 180 against the dollar shortly after the inauguration of President Muhammadu Buhari about a month ago, has fallen to 222 at the parallel market due to a huge demand for dollars by importers and investors.


Increasing business activities have made importers and investors to move their foreign exchange demands to the parallel market, putting pressure on the naira at the segment, it was learnt on Tuesday.

The dollar was sold for between 220 and 222 on the streets of Lagos, Abuja and Kano on Tuesday, while the pounds and euro were sold for 350 and 249, respectively.
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Analysts and foreign exchange dealers said the future of the naira looked bleak, at least at the parallel market.

The Central Bank of Nigeria has been depleting the external reserves in a bid to defend the local currency.

At the interbank forex market, where the central bank intervenes regularly to defend the currency, the naira closed at 199 against the dollar on Tuesday, data from the FMDQ OTC website showed.

The external reserves fell to $29.03bn on June 22, from $29.8bn on May 18, data from the CBN website showed.

Prior to the latest development, the foreign reserves had been stable for several weeks.
Economic and financial analysts said the latest movements in the external reserves meant that the naira was beginning to come under some fresh pressure.

Concerned about the depletion of the reserves, the CBN met with bank officials on Friday to discuss
how to mitigate the pressure on the external reserves.

The CBN has yet to make the outcome of the meeting official but sources said the central bank wanted the banks’ cooperation in order to reduce the pressure on the reserves.

The bank officials, it was learnt, told the CBN that it needed to relax its rules in the forex market and allow the naira to find its level.

The officials, however, promised to take the deliberations at the meeting to the CBN Governor, Mr. Godwin Emefiele.

It is unclear if the CBN will accede to the demand of the banks to relax the rules in the forex market, but the spokesperson for the central bank, Mr. Ibrahim Mu’azu, could not be reached immediately for comments. Calls made to his mobile telephone line were not answered.

Last November, the CBN devalued the naira after spending several billions of dollars to defend the local currency.

The Acting National President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, told our correspondent on Tuesday that the naira’s outlook at the parallel market looked bleak, forecasting that the currency might fall to 230 against the dollar in the coming weeks if the central bank failed to deploy measures to curb the increasing dollar demand at the parallel market.

He said, “There is pressure on the naira again. Maturing import bills are making the demand for dollars to rise again. Most importers and investors are saying they could not access dollar at the official market.

“They are now turning to the parallel market, a situation that is now fuelling the demand for dollar and other foreign currencies at the parallel market.”

The Head, Research and Investment, Afrinvest West Africa Limited, a research and investment advisory firm, Mr. Ayodeji Ebo, said, “The CBN needs to do something urgently otherwise it (slide in the value of the naira) will continue.

“If the pressure continues, the CBN may devalue the naira. I think the CBN is also waiting to see the plan of the new government in order to align its monetary policies with it. Once the new government comes up with its plan, the CBN may devalue the naira. If that is done, foreign investors who have been waiting on the sidelines will come in.”

Source:http://www.nairausd.com/2015/06/naira-faces-fresh-pressure-falls-to-222.html

AdelekeAkinola:
Many Nigerians are so tpribalistic and self cenptered to the epxtent that when they see white they will say its black as far as the white doesn't sooth them. I don't know why someone in his or her right sense will be calling the president a dullard,when your own father who was not a dullard never even became a councillor in your local government talkless of president. For God sake this man is our president even if he is dullard we are the one that put him there. So please cut all this your crappy foul language you use on the man else when the judgement of God come on you,nobody will be there for u. cos The bible say we should respect the people in authority dullard or not. A word is enough for the wise they say.

adenine02:


Lie lie
Officially it 199 to USD
It goes for 212 to USD in gtbank this morning
To hell with all saTANs

Lovechyld101:



NA LIE!!!! Get ur fact Right I just Google it it still 1$= 199naira

youngalex:
This is not the time to play politics or apportion blames,PMB needs to evolve a more pragmatic approach to Governance,The downward trend of the Naira is occassioned by the excessive demand for other foreign currencies..Buhari should do the following with immediate effect
1) Appoint a reknowned Economist as Finance Minister who understands the complexity of the Nigerian Economy
2) Appoint other ministers and ensure his cabinet is complete to set the ground running
3)Ensures that the Refineries commence full operations by next month, Revoke Oil Importing licenses of fuel Importers and authourize NNPC to sign Oil Refining Agreements with at most 4 foreign firms to enable us meet the demands of daily oil consumption
4) Appoint an independent audit firm to probe,recover and plug leakages in Govt. Revenue from NNPC,FIRS,CUSTOMS ETC
5) Cancel ALL import waivers
6) Ensures that all Govt. Payments to Contractors are in Naira

Let me stop here for now,I can list 30 Strategies for Economic Growth if adhered to can appreciate the Naira

naijababe:


So how can I reconcile the above with your earlier post? This government has been in power less than a month yet you are quick to say:

ECOTERRORS:
Buhari: My fiful shud be patient It will still rise to 1naira

Me: STFU Daura President

bushdoc9919:


No....

The major cause is simple.

We are a resource dependent economy.

When the oil price is high....Nigeria has loads of foreign currency to back up the Naira....so the Naira gets stronger.

When the oil price is low....Nigeria does not have loads of foreign currency to back up the Naira....hence the current situation.

The simple solution is industrialization.Industrial development will enable us to produce competitive goods for the international market...and would provide jobs and attract investors galore....and by extension forex. But you Nigerians prefer your imported things. You won't make the needed investment in education and industry....which would lead us to industrial development. You won't deal with your security issues....you beg the govt not to bomb the NE and the SS because ?....and you won't deal with corruption....so who would invest in Nigeria, when he/she has to spend far more cash on bribes...and power and water supply, and even the security?

You better stop blaming the white man, and you , me and all of us better start blaming ourselves. When we welcome looters like that ex governor of Jigawa with much joy....why won't we be underdeveloped? His mates abroad who do corrupt deals are cooling their heels in jail.

barcanista:
Nigeria is going down under Buhari. Where is the change Mr. President?

barcanista:
Baby girl, I made mention of "Nigeria is going down under buhari". I didn't say it has gone down. How do you reconcile the fact that the dollar rate is at N222? That isn't a welcome development. We shdnt wait until things get out of hand before we talk. The business of governance under Buhari kicked of from May 29. We shd remember that!

Ezenwammadu:
When will President Buhari make it N1=$1

www.nairaland.com/attachments/2551779_2550773dullardinhojpegf548371f5f7f07a48e3f5024e913be89_jpege6bff973d0a8db09708fabc0d627381b

texazzpete:


So what will you call GEJ since the dollar moved from N160 to N200 under his watch? An apprentice President?

hustla:
GEJ really messed Nigeria up

barcanista:
Baba is still learning on the job! Let's give the trainee president time to learn

AdelekeAkinola:
Many Nigerians are so tpribalistic and self cenptered to the epxtent that when they see white they will say its black as far as the white doesn't sooth them. I don't know why someone in his or her right sense will be calling the president a dullard,when your own father who was not a dullard never even became a councillor in your local government talkless of president. For God sake this man is our president even if he is dullard we are the one that put him there. So please cut all this your crappy foul language you use on the man else when the judgement of God come on you,nobody will be there for u. cos The bible say we should respect the people in authority dullard or not. A word is enough for the wise they say.

youngalex:
This is not the time to play politics or apportion blames,PMB needs to evolve a more pragmatic approach to Governance,The downward trend of the Naira is occassioned by the excessive demand for other foreign currencies..Buhari should do the following with immediate effect
1) Appoint a reknowned Economist as Finance Minister who understands the complexity of the Nigerian Economy
2) Appoint other ministers and ensure his cabinet is complete to set the ground running
3)Ensures that the Refineries commence full operations by next month, Revoke Oil Importing licenses of fuel Importers and authourize NNPC to sign Oil Refining Agreements with at most 4 foreign firms to enable us meet the demands of daily oil consumption
4) Appoint an independent audit firm to probe,recover and plug leakages in Govt. Revenue from NNPC,FIRS,CUSTOMS ETC
5) Cancel ALL import waivers
6) Ensures that all Govt. Payments to Contractors are in Naira

Let me stop here for now,I can list 30 Strategies for Economic Growth if adhered to can appreciate the Naira

ERODEDEAST:
Is the "Katsina Illiterate" still in the country or he's gone back to West Germany Permanently.

barcanista:
Baby girl, I made mention of "Nigeria is going down under buhari". I didn't say it has gone down. How do you reconcile the fact that the dollar rate is at N222? That isn't a welcome development. We shdnt wait until things get out of hand before we talk. The business of governance under Buhari kicked of from May 29. We shd remember that!

Lovechyld101:



NA LIE!!!! Get ur fact Right I just Google it it still 1$= 199naira