The naira is seen depreciating further and may hit the 500 mark to the United States dollar at the parallel market next week as the greenback scarcity persists and the Central Bank of Nigeria cuts supply to foreign exchange operators.

The local currency was trading around N495 to the dollar on the black market on Thursday, compared to 485 per dollar last week due to dollar shortages, traders said.

The naira was quoted at 310.5 to the dollar on the official interbank window on Thursday by commercial lenders.

“There is an acute shortage of dollars in the market because of supply being slashed by half to Bureau de Change operators from international money transfer agents, pushing the naira down,” one trader said.

The BDC operators are now getting $8,000 each per week from Travelex against the usual $15,000 each per week.

The naira had tumbled against the dollar to 490 on Monday from 487 last Friday, as acute shortage of the greenback continued to batter the economy and the country’s foreign exchange markets.

Before falling to 487 last Friday, the local currency had consecutively closed flat at 485 for four days in the previous week.

The severe shortage of the dollar has put the naira under persistent pressure at both the official and parallel forex markets.

The global crash in the prices of crude oil, Nigeria’s main forex earner, has brought untold hardships on Nigerians.

Economic and financial experts said unless the lingering dollar supply problem abated, the volatility in the exchange rate and the consequent economic challenges might continue.

“The challenge with the forex market is still the supply issue; price (exchange rate) is determined by the interplay of demand and supply,” a currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, had said.

Economic and financial experts expect the naira to weaken further against the dollar as the Christmas holiday begins this week.

They also argued that the crackdown on the parallel market forex traders and the persistent scarcity of the greenback would make further weakening of the local currency inevitable.

A few weeks ago, the naira closed flat at 470 against the greenback over a period of over a week.

The naira had plunged to 470, down from 455 on the back of a fresh dollar shortage at the official and parallel forex markets.

Dollar shortages have caused many companies to halt operations and lay off workers, compounding an economic crisis exacerbated by the fall in global prices of oil, which accounts for over 70 per cent of Nigeria’s budget revenue.

The CBN has struggled to support the naira as the country’s external reserves continue to fall.

Meanwhile, the currencies of Uganda, Kenya and Zambia are seen trading sideways in the week to next Thursday as most investors closed positions ahead of the end of the year, according to Reuters.

http://investorsking.com/forex-scarcity-naira-may-hit-n500dollar-next-week/

e never hit N1000? Sai Buhari

Nothing New.....

Nemo Dat Quod Non Habet == You Cannot Give What You Don't Have


Incompetent President.

The truth is that sane Nigerians never expected any miracle from Buhari, so it isn't a new thing to them.




Nigeria & Nigerians, Behold Your CHAIN-JI

WORST PRESIDENT IN AFRICA, I THOUGHT JONATHAN'S REGIME WAS BAD, BUT THIS HERDSMAN REGIME IS WORST

Oh lawd, we're doomed.

who apc epp

BeeBeeOoh:
The truth is that sane Nigerians never expected any miracle from Buhari, so it isn't a new thing to them.




Nigeria & Nigerians, Behold Your CHAIN-JI

There is no parallel market again so this is fake news.
Why can't the report be specific about the locations? Liars everywhere trying so hard to sell stories of hardship. Where were you when one idiot was spraying dollars until he got tired in an in-law's party? Where were you when one drunken fisherman converted the whole national treasury into dollars and shared to traditional and religious leaders.? You can't eat your cake and have it.

His favorite excuse is....

God help us

Wake me up when it gets to 1000k, God punish APC supporters, if you quote me God will double your punishment.

Buhari is cursed with failure



Prayer for the zombies: May you receive sense from next year



If you don't, then may your life be like the Nigerian Economy

that's the

Waiting for Zombies to defend APC
Royal rumble

what's the difference between 485 and 500? it's already there na

Bringing out my calculator.....

I make daily money ... Even if it hit 1k per dollar, e no affect me

Jesus is coming , OUR GREAT MASTER is coming economic trouble worldwide is a sign of the coming of Christ.

Rejoice people of God we are going homeeeeee

God is alive and will never change

That's what you get when you elect an illiterate ancestor, daft cow rearer as a president...

Shortyy:
Oh lawd, we're doomed.

In God We Trust

Ahhhh Which way naija? When will it better?

Well nt surprised, all buhari policies on forex has backfired.
Earlier dis week d govt placed restrictions on blackmarket thereby causing scarcity of d dollars which has in turn raised d exchange rate

God help dis antihuman govt

Good

Who are the people using the dollar ? What are they using it for ?

Fayose prediction for 2017 already happening in '16...this man better resign or What did we vote NASS for?....someone can be impeached on the ground of incompetency and people were still talking of voting him out 2019....we still have 17 and 18 to go...that means he can cut half the population of Nig tru his hunger scheme before then..Nigerians should think twice ooo

seunny4lif:

Waiting for Zombies to defend APC
Royal rumble

lol bro. We are all in this together.

Worse govt ever