The naira on Wednesday depreciated in value against the dollar at the autonomous foreign exchange market as President Muhammadu Buhari said it should not be devalued further.

Consequently, the naira on Wednesday weakened against the dollar by N2 or 0.90 percent each at the Bureau de Change (BDC) segment of the forex market and parallel market.

After trading on same day, the local currency closed at N224/$ as against N222/$ traded the previous day at the BDC segment, and closed at N226/$ compared with N224/$ the previous day at the parallel market.

However, the naira closed stable at N199.05k against the dollar at the interbank foreign exchange market, data from FMDQ revealed. Naira on Tuesday weakened against the dollar by N1.39k or 0.70 percent at the interbank foreign exchange market.

Africa’s top oil producer has been hit hard by the fall of global crude prices, and its central bank has imposed increasingly strict foreign exchange rules to save its reserves and avoid what would be the third devaluation in a year, Reuters report.

The naira fell to as low as N242 per dollar on the parallel market in July, versus the official rate of N197. It has lost around 15 percent against the dollar over the past year with an official devaluation in November and a de facto one in February.

Buhari, who spoke in an interview with France 24, said he “does not think it is healthy for Nigeria to have the naira devalued further.

“That’s why we are getting the central bank to make modifications in terms of making foreign exchange available to essential services, industries, spare parts, essential raw materials and so on – but things like toothpicks and rice, Nigeria can produce enough of those.”

In June, the central bank restricted access to foreign exchange for the import of 41 items ranging from rice and toothpicks to steel products and glass.

The stringent restrictions have not gone down well with investors, who have called for a relaxation. Meanwhile, JP Morgan said it would remove Africa’s biggest economy from its influential emerging markets bond index by the end of October, citing a lack of liquidity and the central bank’s currency restrictions.

Nigeria’s foreign exchange reserves fell 3 percent to $30.69 billion by September 14, from $31.63 billion a month earlier, central bank data showed on Wednesday. The reserves were down 22 percent from a year earlier.

The central bank ate up much of its reserves to support the local currency, selling dollars to BDC operators twice weekly in a bid to narrow the gap between the official and unofficial exchange rate.

source:http://businessdayonline.com/2015/09/naira-loses-n2-as-buhari-rejects-devaluation/?utm_source=&utm_medium=twitter

cc: lalasticlala

Ok, i know say; one day baba go make wailers proud!

i just know all'll be well!

I dont even understand this write up. I ain't no art student. Tell me the implication and lemme know what to do. Thanks


Check my signature for weight reduction natural supplement.

I tink the body language abi odour is beginning to stink badly, anyway we voted for a man who failed Economics and mathematics. In Sarkode's voice "what else"

That's really bad. The dullard doesn't understand the mechanisms by which the economy runs and that is why this is happening to our naira.

We just pray for better days!!

The dullard should do something fast abeg!

If we diversify our economy, we won't need to struggle like this!

Na wa o, even kenya money beta pass nigeria own.

Where we even dey go self?

We shall overcome

#CHANGE

Fellow Nairalanders, please check out our incredible offer below

God please come to my way and my household!!

ok... I sha know naija go better.
Yahoo guys, over to you

See what PDP 16yrs of failure has cost us...

We shall arise again! Sai PMB

ViktorMartins:
If we diversify our economy, we won't need to struggle like this!

please tell this our mumu country that can't think well...

Devaluation in an import-based economy does not make much sense, imports cost more while exports bring in less (not that we are exporting much).

If our foreign reserves were not depleted, and our chance to diversify the economy during the oil price boom was not wasted by the last administration due to incompetence and greed, we would have a buffer for these hard times.

It is silly to import toothpicks in the first place, not to talk of making the process cost more.

Hmm! Can someone pls break this down for me in layman's terms?

Oil dependency things.

What is happen is simple.....we are running out of dollars to buffer the naira.

As a result...the naira falleth.

Meanwhile....earnings from non-oil exports....are still not enough.

We have to get off oil. Oil is a curse.

As Juan Pablo Perez Alfonso said...''Ten years from now, twenty years from now, you will see: oil will bring us ruin…''

BabyDaddy20:
Thank you lord.
Please, lord.
One more think.
I want $1 to be 600 naira, so that when i send $300 down to Nigeria, my relatives will value the money.

Lool, seriously?

*beats chest will saying* All is Well! All is well

dayo23:
H

For Hezekiah

Seriously dia r tins nigeria shld not even tink of importing(toothpick) aaaaaa!!!!
GEj tried in d rice aspect we shld give him credit for dat

Body language couldn't fix this. Hahaha

Its just a matter of time,its gon gain value

Some sacrifices are better made now

IzonOwei:
please tell this our mumu country that can't think well...

Tell every oil producer that as well.

Not surprised. Naira has been on free fall even before Baba took over. My wish is that this change will make everything right. Even if na #100 = $1 as against the #1=$1 said to be promised by Baba.

dayo23:
See what PDP 16yrs of failure has cost us...

We shall arise again! Sai PMB

It isn't just PDP.....it is the whole problem we have had since independence.

We have gotten so used to exporting raw materials....and sharing the revenue, which we use to import....that we forget that manufacturing is the key to a nation's strength.

The problem is...if we went industrial....we would initially have a hard time....before things get better. When Japan and South Korea started exporting industrial products....their initial efforts were bad.....but they improved. They went through hard times...before things got better. Nigerians do not want to work. They just want to sit down and share the money.