Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,217,691 members, 8,035,138 topics. Date: Monday, 23 December 2024 at 02:03 AM

Naira Tumbles To 360 As Dollar Supply Dries Up - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / Naira Tumbles To 360 As Dollar Supply Dries Up (18127 Views)

Naira Extends Gains As Dollar Glut Hits Market / Naira Falls To 360 As Dollar Demand Rises / Naira Tumbles To 391/dollar (2) (3) (4)

(1) (2) (3) (Reply) (Go Down)

Naira Tumbles To 360 As Dollar Supply Dries Up by Omooba77: 6:19am On Jul 14, 2016
The naira fell to 360 against the United States dollar at the parallel market on Wednesday as the supply of the greenback waned at the foreign exchange market.

The local currency had closed at N354 against the greenback on Tuesday.

The naira has been experiencing high volatility since the beginning of the week, as supply gap at the interbank forex market continues to weigh on the parallel market.

The naira, which closed at 348 against the greenback at the parallel market on Friday, dropped to 351 on Monday before plunging further to 354 on Tuesday.

Foreign exchange dealers, who linked the development to dollar scarcity, said inadequate liquidity in the forex market was making the naira to depreciate very fast.

Currency analysts and experts said there was a need for the Central Bank of Nigeria to address liquidity issue at the interbank market in order to resolve the matter.

“It all comes back to liquidity, that is what drives the market, the Chief Executive Officer, Nigeria, Renaissance Capital, a United Kingdom-based investment bank, Mr. Temi Popoola, said.

Corroborating this view, a currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, said, “It is basically one thing – the supply side; activities are still currently low at the interbank market

“Nothing much is really happening on the supply side of the market. Liquidity issue is still there. We actually felt that foreign investors should have been coming in by now.”

The President, Association of Bureau De Change Operators, Aminu Gwadabe, said the volatility at the parallel market this week could be traced to the activities of currency speculators.

The naira had recorded relative stability against the dollar throughout last week, trading between 246 and 248 at the interbank market.

The ABCON president, however, said supply was still an issue, noting that currency speculators were taking advantage of the supply gap at the interbank market to fuel spike in the exchange rate at the parallel market.

Gwadabe explained, “A huge amount of demand is going to the parallel market. People can’t even get $1,000 for their Personal Travel Allowance; banks said they didn’t have. I think there is a need for the CBN to do something about the forex distribution channel. I believe it is only the BDCs that can do the distribution effectively.

“As much as possible, we want to be patriotic and work with the regulators as BDC operators. The parallel market operators are happy with this spike. It is high time the CBN checkmated this spike. The BDCs can be empowered by giving them access to the Diaspora remittances or the CBN window.”

Gwadabe said the significant influx of illegal forex operators from neighbouring countries was further compounding the exchange rate spike problem.

RenCap’s Popoola said liquidity could come to the interbank market if certain steps were taken by the government.

He stated, “Liquidity currently comes from only one source, the CBN. We can also get liquidity into the market through remittances, portfolio investors and foreign direct Investment. How do we do it? The answer is the price level. There is a price level that will drive liquidity into the market.”

However, he added that the forex market was still anticipating what would come out of the maturity of the first future transactions after the introduction of the new flexible forex regime.

“About $700m is due next week; everybody is looking forward to the maturity of the first forward transactions. So, the market appears to be in a wait-and-see mode. So, let us see what happens next week,” Popoola said.

The naira closed at 283.75 against the dollar at the interbank market on Wednesday. The external reserves were $26.3bn on July 12.

“I think the foreign investors are not comfortable with naira at around 280/dollar,” Ezun noted.


http://punchng.com/naira-tumbles-360-dollar-supply-dries/

1 Like

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by SeverusSnape(m): 6:21am On Jul 14, 2016
Aha

2 Likes

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Nobody: 6:21am On Jul 14, 2016
Hmmn
Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Kenneth205(m): 6:25am On Jul 14, 2016
This is serious!

5 Likes 1 Share

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Totino: 6:27am On Jul 14, 2016
I thought the CBN FOREX policy would make One Naira equal One US Dollar; wetin dey happen na?
With Acting President Yemi Osinbajo, Nigeria Naira is going places

45 Likes 3 Shares

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Omooba77: 6:35am On Jul 14, 2016
The CBN forex policy is not in the best interest of common man. Hunger so much in the land.

4 Likes

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Oliviaxx(f): 8:25am On Jul 14, 2016
Buhari cannot even do anything for this country. Our own has finished oo cryjust like that

38 Likes 2 Shares

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by wristbangle: 8:58am On Jul 14, 2016
The current CBN policy is not effective at all.

Lalasticlala, dollars is now 360 naira. crycry

4 Likes

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by keypad1: 10:05am On Jul 14, 2016
Most appointments in this regime are from the Nut. The juicy and critical appointments. While the crumbs position are given to the wasterners and yeasts. The wasterners and yeasts always claim to be the most intelligent yet they are being played and maligned by the Nutterners.

The problem of nigeria are the 3 major tribes. Full of tribalism and religion bigotry.


The other minority tribes are also not left out in destroying this kontri.


Nepotism and man know man syndrome is every where. No wonder the presidiot keeps giving his kins men all the best appointments with prejudice written all over it.


Someone ask. When will nigeria get better? Ayam sorry to disappoint you nigeria will not get better. Until almajiris go against their governors and leaders for misleading, until the afonjas criticize their corrupt brothers like obasanjo and tinubu, until the yeasterners condemn their brothers truthfully like okorocha and ekweremmadu.

Then nigeria will be great again.


Until then.....lets enjoy the sinking sink


source: my words

38 Likes 5 Shares

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Omooba77: 11:04am On Jul 14, 2016
keypad1:
Most appointments in this regime are from the Nut. The juicy and critical appointments. While the crumbs position are given to the wasterners and yeasts. The wasterners and yeasts always claim to be the most intelligent yet they are being played and maligned by the Nutterners.

The problem of nigeria are the 3 major tribes. Full of tribalism and religion bigotry.


The other minority tribes are also not left out in destroying this kontri.


Nepotism and man know man syndrome is every where. No wonder the presidiot keeps giving his kins men all the best appointments with prejudice written all over it.


Someone ask. When will nigeria get better? Ayam sorry to disappoint you nigeria will not get better. Until almajiris go against their governors and leaders for misleading, until the afonjas criticize their corrupt brothers like obasanjo and tinubu, until the yeasterners condemn their brothers truthfully like okorocha and ekweremmadu.

Then nigeria will be great again.


Until then.....lets enjoy the sinking sink


source: my words

Any where wey dem like make dem appoint. My own be say make help d poor like me de get my daily bread and make Nigeria no spoil finish
Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Omooba77: 11:05am On Jul 14, 2016
Oliviaxx:
Buhari cannot even do anything for this country. Our own has finished oo cryjust like that

My own no finish oh my sister;all will be well

16 Likes

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Adesiji77: 11:15am On Jul 14, 2016
The supply is the "koko". CBN still remains the major supplier...

1 Like 1 Share

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Zdoh(m): 11:35am On Jul 14, 2016
When the avenger keep on blowing pipeline,when herdsmen keep on terrorizing,when lawmakers are full of themselves,when civilian refused to come out and hold their constituency accountable,when husband lies to his wife and children,when we all can not produces and patronise our local products and finally when student and examiners engaged in malpratices.Then what do you expect?#Nigerorientation

6 Likes 1 Share

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by gurunlocker: 1:21pm On Jul 14, 2016
Just tell me PMB and his shambolic economic team are not playing trial and error with Nigeria destiny ....

I hail those in importation business, they are really BRAVE....

3 Likes 1 Share

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Category1: 1:22pm On Jul 14, 2016
Best president ever
Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Nobody: 1:23pm On Jul 14, 2016
Any nigerian that still reason's with his head and still support buhari And don't see reason to criticize him in all dis bad news we getting every day is a compound fool...quote me and type rubbish devil will punish u..how can people still support this man in his mismanagement of our country,everything he met he has spoilt dem all and people go still abuse and kal people names that criticize him dem swear for una?

27 Likes 2 Shares

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Ochinawata01(m): 1:23pm On Jul 14, 2016
This is all the CHANGE we Voted for. God will help us.

4 Likes 2 Shares

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Super1759: 1:24pm On Jul 14, 2016
400 ..loading

1 Like 1 Share

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Benblaq(m): 1:24pm On Jul 14, 2016
and all i can say is



LIKE i CARE

2 Likes

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by pat077: 1:25pm On Jul 14, 2016
Not a good one. Hope tinz change for the better.
Re: Naira Tumbles To 360 As Dollar Supply Dries Up by shamecurls(m): 1:25pm On Jul 14, 2016
Oliviaxx:
Buhari cannot even do anything for this country. My own has finished oo cryjust like that
Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Nobody: 1:26pm On Jul 14, 2016
When nothing we produce is wanted, what else will happen?
Funny enough, we want everything produced elsewhere.

3 Likes

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by Rose2014: 1:26pm On Jul 14, 2016
cheesy cheesy


Nigerians enjoying change since 2015


cheesy cheesy

23 Likes 4 Shares

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by aku626(m): 1:26pm On Jul 14, 2016
“Nothing much is really happening on the supply side of the market. Liquidity issue is still there. We actually felt that foreign investors should have been coming in by now.”
SERIOUSLY?

4 Likes

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by allcomage: 1:26pm On Jul 14, 2016
This country has actually gone to the dogs.Am not being pessimistic but nothing good will ever achieved in this country with out restructuring.

3 Likes

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by saintkel(m): 1:26pm On Jul 14, 2016
E be like say our Naira de mad

1 Like

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by ifyalways(f): 1:28pm On Jul 14, 2016
Sai Change.

I love this. Looking forward to 500 ngn sef cheesy

2 Likes

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by virginboy1(m): 1:28pm On Jul 14, 2016
cry

I pledged to naija my country but how can I serve it with all my strength when I am hungry? cry


Moreover,

Is it that majority of Nigerians don’t wanna grow up mentally while our senators keep brainwashing them?

"Or how else do you explain that an average Nigerian graduate’s salary is 1/7th of that of a US graduate, while a Nigerian Senator’s salary is 8 times that of a US senator." angry



You see joblessness graduates shouting APC,PDP, na my tribeman, na my brother,na my sister, while they wallow in sorrow and frustration and their said mentors live a life of sophisticated luxury without noticing their plights.

This is not ordinary ooo cry

5 Likes

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by oduastates: 1:29pm On Jul 14, 2016
Brought to you as a result of
The Nigerian reckless taste for foreign goods whole not producing

An unpatriotic and criminal elite with a penchant for banking the circulating forex in off-shore accounts on a weekly basis.

A materialistic and unproductive populace.


An inability or refusal to build or any form of local capacity. (The reason why ordinary Street drainage construction are given to Lebanese,syrian, Egyptian plumbers).

8 Likes 1 Share

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by dunkem21(m): 1:29pm On Jul 14, 2016
.. Zombies will now start blaming the Dollar grin

10 Likes 2 Shares

Re: Naira Tumbles To 360 As Dollar Supply Dries Up by northvietnam(m): 1:29pm On Jul 14, 2016
You don minit
Re: Naira Tumbles To 360 As Dollar Supply Dries Up by dovetark: 1:29pm On Jul 14, 2016
booked

1 Like

(1) (2) (3) (Reply)

Nigerian Banks Stop ATM Cash Withdrawal Abroad / Follow Me As I Take You 2ru The Process Of Making $200 Daily On Clickbank / How Can A Nigerian Sign Up For Clickbank Affiliate Program?

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 52
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.