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Nairaland Forum / Nairaland / General / Business / Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market (42906 Views)
Naira Gains, Dollar Crashes At Parallel Market / Naira Crosses 400/$ Mark At Parallel Market After FX Ban On 9 Banks / Fear Over MPC Outcome Fuels Naira Appreciation (2) (3) (4)
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Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by Adesiji77: 3:39pm On Apr 04, 2015 |
The peaceful outcome of the recently concluded presidential election has seen massive offloading of the United States dollars at the parallel segment of the forex market since Monday. This has also seen a significant appreciation of the naira at that segment of the market as politicians, investors and other currency users in the country who hitherto were storing the greenback for fear of post-election violence have been flooding the market with the greenback. Specifically, the naira which had been hovering between N215 and N222 to a dollar since this year closed at N200 to a dollar on Friday. However, at the interbank market, the naira has remained at N197 to a dollar "The dollar supply in the market presently is more than the supply and that is why we are seeing the current level of appreciation in the parallel market," Alhaji Yusuff Ganiyu, who trades in foreign currency in Marina, Lagos, said. Currency analyst at Ecobank Nigeria, Mr. Kunle Ezun told THISDAY that the outcome of the presidential election was in line with analysts’ projections. “The emergence of Buhari connotes positive market sentiment. A lot of people thought there would be post-election violence, but that phone call from President Jonathan completely changed the perception about Nigeria in the international market. “Also, because of the fact that a lot of people anticipated that the dollar might fall, they are selling dollars and this is one of the reasons the naira is appreciating in the black market,” he explained. The naira had slumped 18 per cent against the dollar as oil prices collapsed by almost half since June. This had prompted Central Bank of Nigeria (CBN) to lower banks’ trading limits and introduce a new dealing system in February that prevents lenders from buying dollars on the interbank market without matching orders from customers needing to import goods. “One of the first big challenges the new government is going to have to face is what on earth to do with the naira,” Samuel Vecht, who oversees $2.7 billion in five emerging-frontier-market funds at BlackRock told Bloomberg recently. “Steps have to be taken to ensure reserves don’t keep falling.” Analysts at Renaissance Capital Limited specifically noted that the collaboration would ensure that corruption, wastage and revenue leakages, among others, are tackled. The report added: “Overall, our views are mixed on the implications of a Buhari victory for Nigerian banks. Investors see the asset quality risks but given where valuations are, they have been waiting for three things to justify a re-entry: a recovery in oil prices; fairer valuation of the naira, and some level of comfort on the political environment. Oil prices have recovered somewhat from their 2015 lows but remain a wild card." Buhari’s win over President Jonathan marked Nigeria’s first democratic transition of power from one party to another since independence from Britain in 1960. The naira’s current interbank value is appropriate and the discrepancy between that and the parallel rate isn’t an indication that it’s under pressure, the CBN Governor, Godwin Emefiele had said at the last Monetary Policy Committee meeting between March 23 and 24. http://www.thisdaylive.com/articles/offloading-of-dollars-triggers-massive-naira-appreciation-at-parallel-market/205927/ lalasticlala 8 Likes 4 Shares |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by weezii(m): 3:44pm On Apr 04, 2015 |
We know the people who have been behind this since... Smh for this country ![]() The length people can go BTW: FTC lols. This easter don dey make sense already ![]() 18 Likes |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by CR77(f): 3:51pm On Apr 04, 2015 |
Na APC dey share dollar All na CHANGE ![]() ![]() ![]() ![]() 8 Likes |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by omophunky(m): 3:52pm On Apr 04, 2015 |
. ![]() ![]() ![]() ![]() 4 Likes 2 Shares
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Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by DickDastardly(m): 3:52pm On Apr 04, 2015 |
"That Call By Jonathan" 60 Likes 3 Shares |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by Nobody: 3:52pm On Apr 04, 2015 |
When the head is rotten, even a man without a nose will perceive its stench. CHANGE has indeed come to Nigeria. My pity lies with those who still believe that stealing is not corruption! -CramJones 57 Likes 3 Shares |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by Nobody: 3:52pm On Apr 04, 2015 |
Datz good 1 Like |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by Nobody: 3:53pm On Apr 04, 2015 |
God bless GEJ! 65 Likes 3 Shares |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by EddyNumerouno(m): 3:53pm On Apr 04, 2015 |
People are spending election dollars 2 Likes |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by Bevista: 3:53pm On Apr 04, 2015 |
“The emergence of Buhari connotes positive market sentiment. Specifically, the naira which had been hovering between N215 and N222 to a dollar since this year closed at N200 to a dollar on Friday.The man has not even been sworn in and yet there are positive economic news everywhere. He has not instituted a single economic policy yet talkless of implementation and yet the financial system is already responding favourably to his emergence. In other news it is reported that foreign investors who have never considered Nigeria for their investment are already lining up to come. When asked why the sudden interest, one of them said 'because we know we don't have to bribe anybody now'. 99 Likes 15 Shares |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by vislabraye(m): 3:53pm On Apr 04, 2015 |
Let us see the final outcome ....... 2 Likes |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by orinocopulse: 3:54pm On Apr 04, 2015 |
Good to know. Hopefully, this doesn't repeat itself in future elections. |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by Nobody: 3:54pm On Apr 04, 2015 |
things are falling into place 1 Like |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by Capitano1(m): 3:54pm On Apr 04, 2015 |
I cant wait for may 29th o 2 Likes |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by Nobody: 3:54pm On Apr 04, 2015 |
Everyone knows that any presidential elections held in Nigeria always grinds & puts the economy to a hurt. 1 Like |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by personal59: 3:54pm On Apr 04, 2015 |
Gud |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by james809: 3:54pm On Apr 04, 2015 |
fresh air... |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by 1N9a: 3:55pm On Apr 04, 2015 |
This is serious ![]() ![]() ![]() |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by CR77(f): 3:55pm On Apr 04, 2015 |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by Nobody: 3:55pm On Apr 04, 2015 |
Adesiji77: 5 Likes
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Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by pat077: 3:55pm On Apr 04, 2015 |
we're watchin... |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by mrborntodoit: 3:55pm On Apr 04, 2015 |
People had to change their Naira into dollars before the election incase dog and baboon get soaked in blood,but APC had to campaign with it. Any reasonable and educated person can figure it out without much hassle . I wish Buhari Goodluck in stabilizing world oil price and also making Naira rise to $1 to N1 . ![]() 24 Likes 1 Share |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by Nobody: 3:55pm On Apr 04, 2015 |
Jonthan lost because over 52% of Nigerians do NOT want him for another 4 years. Nobody was behind anything! weezii: 11 Likes |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by Project400: 3:55pm On Apr 04, 2015 |
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Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by CR77(f): 3:56pm On Apr 04, 2015 |
![]() dearpreye: |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by Cchuks27(m): 3:56pm On Apr 04, 2015 |
I hope this continues. Change is truly here (for the better hopefully). 1 Like 1 Share |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by Mogenerous(f): 3:56pm On Apr 04, 2015 |
Nice one |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by mrmaze(m): 3:56pm On Apr 04, 2015 |
Good news |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by henryobinna(m): 3:56pm On Apr 04, 2015 |
i thought $1 has been made to be equal #1 anyway... Android users this is HOW TO SHARE YOUR VPN CONNECTION TO OTHER DEVICES HERE 1 Like |
Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by Nobody: 3:56pm On Apr 04, 2015 |
Beware
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Re: Offloading Of Dollars Triggers Massive Naira Appreciation At Parallel Market by echelons(m): 3:57pm On Apr 04, 2015 |
This went against predictions and speculations. I actually had to advice a friend/customer to buy up dollars few days before the elections. He has lost some funds but that's it. Speculative market is risky. 1 Like |
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