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Naira Further Crashes To N245 Per Dollar As Reserves Rise - Politics - Nairaland

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Foreign Reserves Rise To $30.5B As CBN Targets $40B Before Year End / External Reserves Rise Further, Now $25.4bn / Nigeria’s Foreign Reserves Rise To $31.5 Billion (2) (3) (4)

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Naira Further Crashes To N245 Per Dollar As Reserves Rise by ShowYourCertificate: 6:48am On Jul 15, 2015
The value of the naira continued to sink at the parallel market yesterday selling at N245 to the dollar and N366 to the British pound even as the external reserves and inflation figures of the country maintained a steady rise.

The demand for foreign currency at the parallel market which is constituted by the bureaux de change and black market operators had soared after the Central Bank of Nigeria (CBN) decided to exclude 41 items from assessing foreign exchange at the official end of the market.

It had taken this decision as the external reserves of the country declined to $29 billion and have since been on the uptick, rising by 3.3 per cent within 13 days.

According to figures made available on the website of the CBN, reserves which stood at $29 billion as at June 30 had risen by almost $1billion to $29.955 billion as at July 13, 2015. Foreign exchange demand for the 41 items had subsequently moved to the parallel market, increasing the pressure in the market.

According to a currency analyst at Ecobank, Olakunle Ezun, the value of the naira will continue to decline until the supply issue of the market is addressed.

“The problem is that of demand and supply and until that is resolved the naira will continue to go further down. Unfortunately the CBN has said that that market is out of its control,” Ezun said.

The widening gap between the exchange rate at the parallel market and official interbank market, according to analysts, increases the temptation of financial institutions to involve in round tripping.

As at yesterday, the dollar sold for N198.04 at the interbank and N196.95 at the CBN. A trader explained that the CBN sanctions on round tripping had made it unattractive for banks “because the risks are just too high. If anyone gets caught, apart from the trader getting punished, the bank also stands to lose its foreign exchange licence, and that is too high a risk to take. But that does not mean that a couple of people would not still do it.

”Inflation had continued to rise as the effect of the devalued naira dawns on the import-dependent economy. Steadily rising since January, inflation had risen to 9 per cent in May and had further increased by 0.2 percentage points to 9.2 per cent in June, according to latest figures issued by the National Bureau of Statistics.
http://leadership.ng/business/447001/naira-dips-to-n2451-as-reserves-rise

4 Likes

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by segemint(f): 6:50am On Jul 15, 2015
The benefit of being paid in dollar tho kiss making cool extra cash.

6 Likes

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by MixedMan: 6:52am On Jul 15, 2015
Shey na like this we go dey Dey

Buhari and APC Just Worsened The Economy! Chaii! There is God o!

40 Likes 6 Shares

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by California1(m): 6:53am On Jul 15, 2015
Oh my goodness what is going on in Nigeria. ...... sad

8 Likes 1 Share

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by DaBullIT(m): 6:54am On Jul 15, 2015
Chai , why did i not learn yahoo ? grin grin grin

18 Likes

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by ShowYourCertificate: 6:55am On Jul 15, 2015
I wonder what Buhari scored in Economics in his WASC.

72 Likes 4 Shares

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by dunkem21(m): 6:57am On Jul 15, 2015
Lai Mohammed, let's hear from you ..
Governance no be beans ..I salute you, GEJ.

72 Likes 9 Shares

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by jimi4us: 6:57am On Jul 15, 2015
so buhari is happy about all this .

10 Likes 1 Share

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by jimi4us: 6:57am On Jul 15, 2015
buhari and the CBN man are confuse oooo!!

24 Likes 2 Shares

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by Ufranklin92(m): 6:59am On Jul 15, 2015
una never see anything

25 Likes 3 Shares

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by sweatlana: 7:05am On Jul 15, 2015
All talk and no work makes buhari a lying bastard...

37 Likes 2 Shares

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by docphresh(m): 7:05am On Jul 15, 2015
One of the people flexing this things are those adsense bloggers paid in dollars by Google..
Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by generaliy07(m): 7:05am On Jul 15, 2015
Jesu

Abeg check my signature and keep hope alive

I know we'll get there someday

1 Like

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by Nobody: 7:05am On Jul 15, 2015
As the best Economics student when i was in secondary school even though i was a science student. Lemme contribute my 2 cents..........Screw Buhari undecided

Op do you think if i step on the foreign reserves account with my cleats =#= go rise undecided

1 Share

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by Tallesty1(m): 7:06am On Jul 15, 2015
To buy online these days dey fear me like tomorrow no dey
Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by Bimffo(m): 7:06am On Jul 15, 2015
Choiiii.. E don happen finally.. shocked

1 Like

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by Nobody: 7:06am On Jul 15, 2015
I blame Yoruba people for all this...all bent on removing GEJ. On may 30th a dollar was 215 naira. Within a month and half of GMB in office it has fallen in value by a whopping 30 naira; unprecedented in the history of Nigeria. This is outrageous!

43 Likes 1 Share

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by ednut1(m): 7:07am On Jul 15, 2015
the economy is hovering around a bermuda like triangle. if pa go slow does not act fast and appoint a fin minister. the economy is headed for a disastrous and pestilential aqua grin.

1 Like

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by edlion57(m): 7:07am On Jul 15, 2015
very soon naira will become CHANGE and that is what der promised us

16 Likes 1 Share

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by Olofintoto(m): 7:07am On Jul 15, 2015
DaBullIT:
Chai , why did i not learn yahoo ? grin grin grin
nothing is ever too late. For PMB to become president at 70+, I see no reason why u can't start now.







































I hope u will accept my little piece of advice. Thanks.

6 Likes

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by royale442(m): 7:07am On Jul 15, 2015
Nigeria will be better.

1 Like

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by Nobody: 7:09am On Jul 15, 2015
I believe in #Change
Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by Mopolchi: 7:09am On Jul 15, 2015
na so e go be.
Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by Franchise21(m): 7:09am On Jul 15, 2015
We re in for trouble
Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by icemann(m): 7:09am On Jul 15, 2015
The budget was calculated at $60 for oil but currently oil is trading at $ 57 a barrel. It's going to get lower than $57 when Iran sanctions are lifted. It is estimated that oil would drop to around $40 to $45 range by end of this year when Iran's oil hit the market. So by the end of the year i estimate 300 to a $1. SO CONVERT YOUR SAVING TO DOLLARS. Exchange rate has never gone down so you will not lose money.

Look at it this way, imagine an individual earning 100K and later it drops to 60k(40% drop). First the savings gets spent(excess crude account). Cuts would be made on luxury items like Friday night Moet (private jet). Next siblings and girl friend allowance( fuel subsidy) and the list goes on till equilibrium is reached.

Less earnings means less Dollars in circulation(since Nigeria mooches off the govt earnings). So the demand for dollars is high aka high exchange rate. Its more complex than what i explained but its gives you an idea.

To cushion that effect CBN would raise interest rates to around 20% to 30%. This is to cushion inflation and attract foreign bonds

Alternative approach which is riskier is to print money like the US did in 2008. Not a good advice but if it clicks Nigeria would survive this recession.

7 Likes

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by Timoleon(m): 7:09am On Jul 15, 2015
The economics of 'Zimbabweism' loading!

3 Likes

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by Nobody: 7:09am On Jul 15, 2015
segemint:
The benefit of being paid in dollar tho kiss making cool extra cash.
What benefit when the price of goods and services shoots up by 50-100%? You may feel that you have the extra cash but there isn't any significant difference when you put into consideration the buying power of your cash. It affects everyone negatively irrespective of how you look at it.

3 Likes

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by lordtech(m): 7:10am On Jul 15, 2015
Hmmm, speechlesd undecided
Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by Nobody: 7:11am On Jul 15, 2015
Nigeria's economy is really on d downlow

1 Like

Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by wheesin(m): 7:12am On Jul 15, 2015
o
Re: Naira Further Crashes To N245 Per Dollar As Reserves Rise by Vikkie14: 7:12am On Jul 15, 2015
Did Mr President even pass Economic in School at all??

Is it until Naira hit #300 a Dollar before he sees the need for Ministers??

7 Likes

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