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Naira Loses Value Against Dollar |The Republican News

The Naira on Wednesday depreciated marginally against the dollar at the investors’ window, trading at N364, weaker than N363.72 posted on Tuesday.

Market turnover stood at 264.04 million dollars, while it traded at N306.35 to the dollar at the official CBN window.

At the parallel market, the Naira closed at N359.5 to the dollar, while the Pound Sterling and the Euro closed at N482 and N421.

Trading at the Bureau De Change window saw the Naira close at N360 to the dollar, while the Pound Sterling and the Euro closed at N482 and N421.

The Nigerian currency remained stable at the market largely due to series of interventions by the CBN.

(NAN)

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Naira Hits 520 Per Dollar, Forex Retailers Examine CBN Action |The Republican News

nairadollars

Oyetunji Abioye

The naira tumbled to 520 against the United States dollar at the parallel market on Monday as scarcity of the greenback continued to keep the exchange rate in a free fall mode.

The naira had closed at 516/dollar on Friday, after hitting 510/dollar and 507/dollar last Thursday and Tuesday, respectively.

Experts said demand for dollar for school fees payment overseas as well as Personal Travel Allowance by intending travellers was taking a toll on the exchange rate at the parallel market.

This came just as retail currency traders tried to digest the Central Bank of Nigeria’s new decision to sell dollars to retail users through commercial banks, Reuters reported.

The CBN is planning to sell $1m weekly to each of the country’s 21 commercial banks at a rate of N375 to clear a backlog of demand for retail users and try to narrow the premium between the official and black market rates.

Retail currency users buy dollars from licensed Bureaux de Change operators. However, due to the CBN’s inability to meet dollar demand, the BDCs have tended to source dollars from private sources and resell at a much higher margin, fuelling the black market.

Forex traders told Reuters that some banks had compiled a list of bids from customers awaiting dollars.

The CBN has been selling dollars at N305 to clear a backlog of demand from manufacturing, agriculture and airline companies, hoping also to help drag the country out of its worst recession in 25 years.

Experts are divided over the outlook for the naira this year. Some experts have said the naira may hit between 520/dollar and 1000/dollar at the parallel market this year unless the CBN reviews its forex policy.

An economic expert and Chief Executive Officer of CocoSheen Nigeria Limited, Mr. Henry Boyo, said the naira would hit 1000/dollar unless the central bank reviewed its monetary policy framework.

He said the framework was skewed against the naira.   (Punchng.com)

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Naira Crashes To 516 As Dollar Scarcity Worsens |The Republican News

Oyetunji Abioye

nairadollars

The naira appears to have entered a free fall mode with the local currency selling for 516 per United States dollar on the streets of Lagos on Thursday.

The naira plummeted at the parallel market from 510/dollar on Wednesday to 516/dollar on Thursday.

Currency dealers on the streets of Lagos Island sold the greenback at 516 and bought same for 513. In Egbeda, a major black market centre in Lagos, the naira was sold for 516 and bought at 510. At the Murtala Muhammed International Airport, Lagos, the dollar was bought on the parallel market for 516 and sold at 513.

On Wednesday, the local currency had closed at 507 against the greenback as acute dollar shortage continued to weigh on the currency market.

The local currency traded at 507/dollar on Monday and Tuesday on the black market.

Experts are divided over the outlook for the naira this year. However, some analysts have predicted that the local currency will take further beating against the dollar this year.

The Chief Executive Officer, Financial Derivatives Limited, Mr. Bismarck Rewane, said the local currency would hit 520/dollar this year on the parallel market and touch 350/dollar at the official market.

An economic expert, Mr. Henry Boyo, has predicted that the naira will hit 1000/dollar on the parallel market this year if the Central Bank of Nigeria fails to review its monetary policy framework.

According to him, the current monetary policy framework adopted by the CBN is skewed against the naira.

Other experts including the CEO of Afrinvest, a local research and investment advisory firm, Mr. Ike Chioke, says the naira will depreciate further against the dollar this year unless the CBN reforms the currency market.

Meanwhile, analysts have predicted that the naira will face fresh pressure on the parallel market next week with dollar supply falling short of demand by persons seeking currency to pay school fees abroad as the CBN continues to ration forex for businesses.

Demand for dollars has soared even though the external reserves have reached $29bn.

The naira continues to trade flat at the official interbank window at 305.5 to the dollar.

Traders said demand pressure was mounting on the black market but dollar supply had not significantly improved, suggesting further depreciation of the local currency might be coming, Reuters reported.  (Punchng.com)

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Naira Among Four Worst Global Currencies In 2016, NSE Worst Performer |The Republican News

 

•NSE emerges worst performer

Stanley Opara with agency report

The naira is one of the world’s four worst performing currencies in 2016, according to a report by Bloomberg LP.

The naira was said to have lost 36.68 per cent of its spot returns for the year, while the Egyptian pound, Suriname dollar and Venezuela bolivar’s currency spot returns dropped by 58.84 per cent, 46.68 per cent and 37 per cent, respectively, for the period.

The Nigerian equity market fared worst in the year, according to the report, as the nation’s economy is set to contract in 2016 for the first time in more than 20 years as capital controls deter foreigners from investing and militants are blowing up pipelines.

The five best performing currencies of the world are the Russian ruble, Brazilian real, the palladium, the Iceland krona, and silver, which appreciated by 21.31 per cent, 20.96 per cent, 20.08 per cent, 14.42 per cent and 14.41 per cent, respectively, in terms of spot returns.

Two Africa currencies, the Zambian kwacha and South African rand, emerged as the sixth and seventh best performing currencies of the world. The kwacha and rand appreciated by 11.96 per cent and 11 per cent respectively.

The report stated, “It was a particularly bad year for any currency called the ‘pound’. The Egyptian version was the worst performer in 2016 as the nation took the dramatic step of allowing it to trade freely in an attempt to stabilise an economy struggling with a dollar shortage and concerns over social unrest. Britain’s pound tumbled after the Brexit and never recovered.”

On the other side of the spectrum, digital currency, bitcoin, was the best performer this year, rising more than 100 per cent as capital controls in places like China and isolationist rumblings in the United Kingdom and the United States fuelled interest in alternate currencies, according to the report.

It added, “When it comes to currencies issued by governments and central banks, the Russian ruble has been the best performer of the year as the oil market rebounded.

“While the UK currency’s slide didn’t match those in some emerging markets, it did tally the worst performance among major currencies.”

Despite recent unrest, Brazil’s Ibovespa stock index remained the best performer for 2016 when looking at all indices in terms of the US dollar, the report noted, stating that this was largely due to hopes that President Michel Temer, who took office after Dilma Rousseff was impeached, would end the worst recession in a century and bring about political stability. (Punchng.com)

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FOREX: Naira May Hit N500/Dollar Next Week |The Republican News

                                                                                       Naira notes

 

Oyetunji Abioye with agency report

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. (Punchng.com)

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Naira Tumbles To 490 As Dollar Shortage Continues |The Republican News

                                                                           Naira notesOyetunji Abioye

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

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

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

“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.

According to the Managing Director, Cowry Asset Management Limited, Mr. Johnson Chukwu, the Federal Government needs to access an emergency lifeline of about $10bn from the International Monetary Fund to stabilise the exchange rate and restore investor confidence to the financial markets.

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.

The naira had, however, consistently closed around 305.5 a dollar at the official window since August.

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.

Travelex and First Bank of Nigeria Limited commenced the sale of forex to Bureau De Change operators about two months ago after getting the Central Bank of Nigeria’s approval.

Some forex traders, however, said the scheme had failed to ease the biting dollar shortage in the country.

“What we get from Travelex is not sufficient,” one trader said, referring to the demand in the market.

The President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, said the sale of dollars to the BDC operators had yet to cut across the country.

This, he said, was partly responsible for the grueling dollar scarcity.

“There are still logistics problems in selling forex to all the BDC operators; this is what is causing this relative scarcity,” he said.

The CBN had asked the International Money Transfer Operators to sell dollars directly to the BDC operators to boost liquidity and narrow the gulf between the parallel and official market rates.

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.  (Punchng.com)

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