The Naira exchanges at about 410 to a dollar in the parallel market without any demand. People are not paying for school fees, hospial fees, property of even buying goods abroad. With this low demand, the dollar is 410, what happens when things normalize and business starts ? How much will the Dollar exchange for?

mekaboy:
The Naira exchanges at about 410 to a dollar in the parallel market without any demand. People are not paying for school fees, hospial fees, property of even buying goods abroad. With this low demand, the dollar is 410, what happens when things normalize and business starts ? How much will the Dollar exchange for?

it's only good for these of who work online

Ooinn

The rules of economics does not always apply in a country of selfish leaders with no directions. To be fare and balance also note that this also has to do with the current price oil for a country running mono economy the only way out of this is diversification.

Dollar via card payment is 425.

This is because there's no inflow into the country and to the BDCs for now per CBN's stoppage of sales to them hence the very little they have, they've marked it up to make maximum gain from it. The demand are still there but not much. People still pay for services but in the minority.

mekaboy:
The Naira exchanges at about 410 to a dollar in the parallel market without any demand. People are not paying for school fees, hospial fees, property of even buying goods abroad. With this low demand, the dollar is 410, what happens when things normalize and business starts ? How much will the Dollar exchange for?

Almost everyone wants to be rich at the expense of his fellow countrymen. We have a long way to go in this country. Selfishness, greed, corruption are deeply rooted into d very root of this nation

mekaboy:
The Naira exchanges at about 410 to a dollar in the parallel market without any demand. People are not paying for school fees, hospial fees, property of even buying goods abroad. With this low demand, the dollar is 410, what happens when things normalize and business starts ? How much will the Dollar exchange for?

I've thought about this too. But I guess, it depends largely on what happens in the oil market going forward (considering oil sales account for over 90% of our FX earnings).

If oil prices stay below $30 for a significant amount of time, then the CBN will start excluding import items on it's list and limiting the FX rations it gives to Banks and BDCs. Banks will place further limits on FX transactions. All these will push the price in the parallel market to #450 - #500 range.

I understand the government is trying to borrow from some international finance organizations. The FX inflows from such borrowing will help buy some time in managing the the exchange rate...but not for long.
---
That is why it's important for the global economy to get over this Covid-19 madness as quickly as possible. The longer it continues, the longer the economic devastation...especially for countries (like Nigeria) that depends largely on oil sales to balance government budget.

bigtt76:
This is because there's no inflow into the country and to the BDCs for now per CBN's stoppage of sales to them hence the very little they have, they've marked it up to make maximum gain from it. The demand are still there but not much. People still pay for services but in the minority.

What services do people pay for in USD at this time when most businesses are shut down?

Any idea the exchange rate of dollar at banks today

SoNature:


What services do people pay for in USD at this time when most businesses are shut down?

So many.
Ads, premium renewals, streaming services, online learning. These are the ones I do though. Don't know for others.

mekaboy:
The Naira exchanges at about 410 to a dollar in the parallel market without any demand. People are not paying for school fees, hospial fees, property of even buying goods abroad. With this low demand, the dollar is 410, what happens when things normalize and business starts ? How much will the Dollar exchange for?

Cbn I&E window is closed. When it opens, it will fall.

Why are people even looking for dollar at this point?

Despite companies being partially shutdown (most are working remotely) some pay for their technology needs such as domain name registration, server hosting, remote developers, security subscriptions etc. Mind you cargoes are still being ordered and paid for as part of the fight against the pandemic. Demand is low but not entirely inexistent

SoNature:


What services do people pay for in USD at this time when most businesses are shut down?