The naira on Thursday crashed further
against the United States dollar from 215 to
220 at the Bureau de Change segment of the
foreign exchange market, following the
closure of the Retail Dutch Auction System
and Wholesale Dutch Auction System window
by the Central Bank of Nigeria.
The naira also weakened to 199 to the dollar
at the interbank market, compared to 197 on
Wednesday.
The CBN had on Wednesday said all demands
for foreign exchange should be channelled to
the interbank market, adding that only
genuine demands for foreign exchange would
be met.
The President of the Association of Bureau de
Change of Nigeria, Mr. Aminu Gwadabe, told
our correspondent in a telephone interview
on Thursday that the closure of the RDAS
could further affect access to foreign
exchange by the BDC segment of the market.
“The dollar has gone to 220 at the close of the
market today from 215.5 yesterday
(Wednesday). That is the rate you can buy
now, that is even if you see it. You might not
even see it at 220 because the supply is not
much.”
“Last week, we bought at the interbank at
N203, N204. As of yesterday (Wednesday), the
rate at the BDC was N215.5.
“By tomorrow (Friday), we are likely going to
see continuous volatility in the market except
the CBN, as promised, continues to intervene
at the interbank market.”
He added, “Before the closure of the RDAS,
the CBN had stopped selling its money to the
BDCs through the RDAS for the past three
weeks or so. We have been accessing foreign
exchange through the interbank. Technically,
what they are saying is that it is going to be a
one-rate system.”
There are over 2,500 BDC operators in the
country. At the BDC, the process of buying
dollars is less rigorous but the operators
usually sell in small lots, compared with the
interbank market, which can transact over
$100m a day.
“There is going to be a lot of competition in
the interbank market because everybody will
be going there.
“So, to some extent, except the CBN is going to
intervene heavily in the market as it said, we
will find that the sources of foreign exchange
to the BDCs will be narrowed again and the
rate at which the BDCs sell will definitely go
higher,” said Gwadabe.
A fixed income and currency analyst at
Ecobank, Mr. Olukunle Ezun, said with the
wide margin between the RDAS and interbank
market rates, the CBN had been subsidising
the naira, which was not the best practice
because it gave room for round-tripping and
speculation.
Ezun said, “This one is more like implicit
devaluation because the CBN has not made
the pronouncement. But if the CBN is selling
at N196 or N197, that is devaluation without
saying it.”
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All I can say is "BEHT WHY?"

This naira devaluation is beginning to pain me.

Worst thing is pdp keep saying the economy is growing... are these people living in another Nigeria...? Very confused bunch of people...

E NO GO BETTER FOR J0NATHAN AND NGOZI IWEALA

Currency slide against the dollar is worldwide, it rest on the government to carefully manage the trend until there is stability in the world economy

firstolalekan:
E NO GO BETTER FOR J0NATHAN AND NGOZI IWEALA

ITbomb:
Currency slide against the dollar is worldwide, it rest on the government to carefully manage the trend until there is stability in the world economy

What Rubbish is this one saying?
How much was Naira to dollars early last year?
Who devalued the Naira three months ago?
Please reason before you type.

firstolalekan:

What Rubbish is this one saying?
How much was Naira to dollars early last year?
Who devalued the Naira three months ago?
Please reason before you type.

Throughout last year, the naira was at 165 - 168 to a dollar.

World oil prices slump affected many countries especially those dependent on crude oil/natural gas like Venezuela, Russia

Comparing this chart, you will see how the fall of oil crude prices negatively affected most currencies, remarkably the naira held on very well compared to others but recently uncertainty following the postponement of the election have created an artificial slump which the central bank is trying to gauge by closing the markets,.
[img]http://clamo.ftdata.co.uk/files/2014-11/28/Capture(3).PNG[/img]


If you think like Buhari that you can control world oil prices then I wish you success in the wilderness of your ignorance

[s]

ITbomb:


Throughout last year, the naira was at 165 - 168 to a dollar.

World oil prices slump affected many countries especially those dependent on crude oil/natural gas like Venezuela, Russia

Comparing this chart, you will see how the fall of oil crude prices negatively affected most currencies, remarkably the naira held on very well compared to others but recently uncertainty following the postponement of the election have created an artificial slump which the central bank is trying to gauge by closing the markets,.
[img]http://clamo.ftdata.co.uk/files/2014-11/28/Capture(3).PNG[/img]


If you think like Buhari that you can control world oil prices then I wish you success in the wilderness of your ignorance

[/s]
Rubbish!
How much did it affect
Cedis
Riyan
Riyadh etc
Gullible deluded PDPïg

ITbomb:


Throughout last year, the naira was at 165 - 168 to a dollar.

World oil prices slump affected many countries especially those dependent on crude oil/natural gas like Venezuela, Russia

Comparing this chart, you will see how the fall of oil crude prices negatively affected most currencies, remarkably the naira held on very well compared to others but recently uncertainty following the postponement of the election have created an artificial slump which the central bank is trying to gauge by closing the markets,.
[img]http://clamo.ftdata.co.uk/files/2014-11/28/Capture(3).PNG[/img]


If you think like Buhari that you can control world oil prices then I wish you success in the wilderness of your ignorance

That chart looks more like what USA suffered during the economic recession in 2008. And speculations show that such a slump is likely to happen soon. '401kaos', a book by Andy Tanner has some talk on it.

Haaa omo make one ma ga pay me dollars na..omo na correct bar I go hold o