FOREIGN exchange (forex) speculators from Benin Republic, Niger, Chad, Sudan, Ghana and other African countries are cashing in on the wide margin between the official and parallel market rates to make huge profits ,The Nationhas learnt.

The speculators are moving in huge dollar deposits to meet the rising demand by Nigerian importers and other buyers requiring dollar to pay their children’s school and medical fees.

Although the exchange rates are high, the urgency and necessity left the buyers with no option than to buy from the parallel market.

The official exchange rate has remained at N197 to a dollar in the last six months, creating a huge gap between the official or interbank rates and parallel market rates.

Confirming the development, President of the Association of Bureau De change Operators of Nigeria (ABCON) Aminu Gwadabe said over $100 million inflow was recorded last Friday.
He said this led to a temporary appreciation of the naira against the dollar.

The naira, on Friday, traded at N365 to a dollar – from N391 the previous day – because of the liquidity the dollar inflow brought to the market.

Gwadabe said by Saturday, the naira again depreciated against the dollar as it exchanged at N375 to a dollar, adding that the volatility is expected to continue this week.

“Foreigners are taking advantage of the naira situation. We have 18 countries within the continent where the naira is accepted. The speculators are coming in because of the huge gap between official and parallel market rates,” he said.

Gwadabe said exporters, mainly from Dubai, have agents in Nigeria, who accept naira from importers at agreed dollar rates.

The importers travel with certified invoice to bring in the goods, a practice, he said, reduced pressure on the naira.

“In my view, the CBN should address the supply side of the market by allowing oil companies and banks to sell dollar to bureau de change operators as a measure to reduce pressure on the naira,” he said.
Tumbling global oil prices have battered Nigeria’s crude exports, with foreign exchange reserves down to an 11-year low at $27.85 billion.

The Federal Government is concerned that further naira depreciation would hurt Nigerians, but the CBN’s refusal to revise the pegged exchange rate widened a gap between official rates and the parallel market.
Managing Director of Cowry Assets Management Limited Johnson Chukwu said economic agents “are rational, and will go to where their values will be maximised or their risk minimised”.

He said Nigeria did not have the financial resources to solely develop its economy in the short to medium term and that current global social architecture made absolutely closed economic borders impossible.
“The crisis in the economy seem to be worsening since the crash in oil prices from about $115.09 (Brent crude spot price) on June 19, 2014, to $34.83 (Brent crude) today.

“This is despite a barrage of monetary and administrative policies introduced by the CBN to stabilise the exchange rate and restart economic growth.

“While the CBN has been active in trying different options, business managers and investors are still waiting for the managers of the fiscal policies to present their response to the crises, which should be harmonised with those of the monetary authorities,” he said.

Chukwu insisted that while the CBN effectively maintained the official exchange rate at N197 to a dollar, it has been impossible for it to meet the legitimate demand at the official window at the stipulated official rate.

“It is the backlog of unmet demand, which has spilled over to the shallow parallel market and driven down the naira,” he said.

http://thenationonlineng.net/forex-speculators-from-benin-republic-ghana-others-invade-nigeria/

I won't devalue the naira if I was the president too
Let's endure... This is just a phase

buhari will lead us to the promise land. God bless him

The CBN has only two options now:
1. Devalue the naira and support the naira from the foreign reserve, but the foreign reserve is low and can only last for 3 months.
2. Restrict importation of certain products, to save the foreign reserve for inevitable imports, which cannot be sourced in nigeria.
.
The second option is clearly the best in the long run, while the first can only work for a short period because the oil price is not rising anytime soon and might go down to even $20. We have to stop this our importation madness and start using what we can produce in nigeria. For how long will Nigeria continue to dodge this bullet, when we can disarm the assasin with a little effort and sacrifice.
"Naira must fall, so nigeria can rise again"
i stand with buhari

Hmmmmm....

lets see where it will lead us

Following.

belle face govt

They just want to have their bites too... Funny.

#NigeriaWillBeGreatSoon

Not their fault naaaww... Show me a man who'll see an opportunity and not grab it, i'll show u my grandma who's a virgin.



Check my signature for ur customised wristband

CBN didn't refuse, Boooooohari refused!

“While the CBN has been active in trying different options, business managers and investors are still waiting for the managers of the fiscal policies to present their response to the crises, which should be harmonised with those of the monetary authorities,” he said.

This has been my grouse with this administration. The inability of the FG to properly articulate and communicate its fiscal policies is quite disturbing.
---
OK, we should be self sufficient in agriculture, but what is government policy and Strategy for achieving it? Are there any low interest loans for farmers? Are there any government concessions or support for those willing to go into agro-processing? Any government policy to increase cheap access to farmlands? etc.
---
We should be self sufficient in manufacturing. What is government target for power generation? Any access to finance for those willing to setup factories? Any Tax considerations? Are there any clear plans and strategies for encouraging OEMs to setup local production facilities in-country?
---
What is the government industrialization plans & policies? What specifically are government plans for diversification of the economy? What exactly is government plans to reduce unemployment?
---
The administration needs to communicate more. In my elementary knowledge of Finance and Investments, capital only goes to where there are less uncertainties. This government has practically relied on CBN monetary policies with very little input on the fiscal side.

Hmmm,watching in 4D

oyinkinola:


1. ....there are very many commentary on depreciation of ₦ nowadays expecially in parallel market, although parallel or black market can be manipulated by the traders, they either do it on their self interest, so those who doesn't beleive in the prosperity of nigeria can harbour $ as they can on imported goods hereby cause hike!
But in my own point of view the depreciation of ₦ is a great success to this nation if well manage to nigeria situation today. the looted fund is in $ and it must be refunded back in $, so if $1 is ₦198 when the money is looted, then if the money is refund today at $1 to ₦350 the nation has gained ₦152!
imagine if $1=₦1000, the gain is ₦902!
So in conclusion if the government managed to refund the $trillion looted and the refunded money, change it in parallel market, this will reduce the pressure on ₦ and the scarcity of $ in parallel market so the ₦=$.

(take note all the money took out of CBN during jonathan regime were changed in parallel market before ditributed)

you have other opinion?

2. ...2017 budget will beat record... ₦1 quadrillion!, all the social sectors will be substantially finance to trillions ₦, poverty will be completely eradicated and by the end of year 2018 Nigeria will be declared a developed state and classify one of the first three country in the index of human .
I know you will argue on how this can happen with the economics situation of today, low foreign reserve, low oil price, with depreciation of ₦.
yes oil price is down, foreign reserve is dry but we still have foreign looted fund reserve at hand! when recovered and well managed, it won't be problem to have money for this budget!
we can only pray that a $ hit ₦1000 and all $1 trillion looted recovered!
I know for sure that with the determination of this government and the support of foreign nation to help recovered all $ trillion looted it will happen.....$1 trillion recovered and change to ₦ will give us ₦1 quadrillion needed to financ that budget!
year 2017 bye bye to poverty!

3. ....OIL AND LFR
THE TWO MAIN MEANS OF INCOME FOR NIGERIA ECONOMY
.....with the determination of Nigeria president Buhari and the trust of of world leaders toward nigeria, from America, Eroupe, Asia and gulf nation the down price of oil and the rise in $ is not a corse to nigeria but a blessing.
Among the oil producing countries, and OPEC only nigeria have what other didn't, we have oil in common but nigeria have the looters as well, this opportunity raise nigeria above other oil nation and when all this country are frustrated with oil down price, nigeria have turn to her looted fund reserved to keep her economy running.
Nigeria is bless with oil and (LFR) looted fund reserve, when the oil price is down, the rise-up of dollar $ hike the value of our LFR, if government inject the LFR recovered on the economy, it will boot our economy!
at rate of $ to ₦ today if government managed to recovered $1 trillion LFR it will give us:

$1=₦400, $1trillion=₦400trillion!
I hereby challenge the Nigeria economists who insist that rising $ and downwards of oil price is a broke to nigeria economy to come-up for debate!
Note (LFR is looted fund reserve)

day dreamers

lt is all about demand and supply.

joborskill:
buhari will lead us to the promise land. God bless him

Elosky20:
i stand with buhari

zombies

True

Hmm! So if these other countries flood Nigeria with Dollar, in the long run, the price will drop back to where it was before, yes?

y

.

oyinkinola:


1. ....there are very many commentary on depreciation of ₦ nowadays expecially in parallel market, although parallel or black market can be manipulated by the traders, they either do it on their self interest, so those who doesn't beleive in the prosperity of nigeria can harbour $ as they can on imported goods hereby cause hike!
But in my own point of view the depreciation of ₦ is a great success to this nation if well manage to nigeria situation today. the looted fund is in $ and it must be refunded back in $, so if $1 is ₦198 when the money is looted, then if the money is refund today at $1 to ₦350 the nation has gained ₦152!
imagine if $1=₦1000, the gain is ₦902!
So in conclusion if the government managed to refund the $trillion looted and the refunded money, change it in parallel market, this will reduce the pressure on ₦ and the scarcity of $ in parallel market so the ₦=$.

(take note all the money took out of CBN during jonathan regime were changed in parallel market before ditributed)

you have other opinion?

2. ...2017 budget will beat record... ₦1 quadrillion!, all the social sectors will be substantially finance to trillions ₦, poverty will be completely eradicated and by the end of year 2018 Nigeria will be declared a developed state and classify one of the first three country in the index of human .
I know you will argue on how this can happen with the economics situation of today, low foreign reserve, low oil price, with depreciation of ₦.
yes oil price is down, foreign reserve is dry but we still have foreign looted fund reserve at hand! when recovered and well managed, it won't be problem to have money for this budget!
we can only pray that a $ hit ₦1000 and all $1 trillion looted recovered!
I know for sure that with the determination of this government and the support of foreign nation to help recovered all $ trillion looted it will happen.....$1 trillion recovered and change to ₦ will give us ₦1 quadrillion needed to financ that budget!
year 2017 bye bye to poverty!

3. ....OIL AND LFR
THE TWO MAIN MEANS OF INCOME FOR NIGERIA ECONOMY
.....with the determination of Nigeria president Buhari and the trust of of world leaders toward nigeria, from America, Eroupe, Asia and gulf nation the down price of oil and the rise in $ is not a corse to nigeria but a blessing.
Among the oil producing countries, and OPEC only nigeria have what other didn't, we have oil in common but nigeria have the looters as well, this opportunity raise nigeria above other oil nation and when all this country are frustrated with oil down price, nigeria have turn to her looted fund reserved to keep her economy running.
Nigeria is bless with oil and (LFR) looted fund reserve, when the oil price is down, the rise-up of dollar $ hike the value of our LFR, if government inject the LFR recovered on the economy, it will boot our economy!
at rate of $ to ₦ today if government managed to recovered $1 trillion LFR it will give us:

$1=₦400, $1trillion=₦400trillion!
I hereby challenge the Nigeria economists who insist that rising $ and downwards of oil price is a broke to nigeria economy to come-up for debate!
Note (LFR is looted fund reserve)

Morkavictor:
zombies

mynd44

Daura dullllllard oooooo

repogirl:
CBN didn't refuse, Boooooohari refused!

repogirl, you are a Buhari hater? My likeness for you just dropped like a hot pot in a toddlers hand.

GEJ would have cluelessly devalued the naira,I stand with GMB

Opportunity comes but once...But I know this situation is just a phase that we are passing through

WU and MG should start giving dollars out. No time

repogirl:
CBN didn't refuse, Boooooohari refused!

my friend, can you please do a research and come up with a good reason why he should not refuse. may be we can learn.

I want start dis forex of a tin.. .. Who knows how I go take start

Can't we remove this forex restrictions and make import duty so exorbitant that it will discourage importers..

Meanwhile, to improve local production we need to provide certain things like steady power supply and security which is not at its best currently..
My opinion thou, I studied computer not economics..

buhari come back home ooo and make dis decision quick ooo..all his decisions are just somehow ...have lost hope in him