The Nigerian naira has been volatile on the parallel market in recent times, weakening against the dollar but it may start appreciating next week.

The currency was seen stable against the dollar towards the end of this week, although it lost two units against the greenback. It exchanged at 320 per dollar at the end of this week on the parallel market as against 318 per dollar last week.

Although there's a wide margin between the parallel and the official market, President Muhammadu Buhari anti-devaluation stance stands staunchly. According to reports, the decision of the CBN not to devalue is one of the reasons the currency had been losing value against the dollar of recent. However, the currency may start appreciating against the dollar next week going by recent events.

Here are three reasons why:

1. The dollar is weakening:

The US dollar has been weakening against major currencies recently. This is reflective in the price of a barrel of crude oil- which has hit its highest point in 2016. This factor may cause the naira to appreciate against the dollar next week.

2. 2016 Budget:

With the controversies surrounding the 2016 budget almost over, the document might be signed next week. There are reports the senate committee and the presidential committee have concluded work on the document. It's also expected that President Buhari will assent the document next week. This is expected cause an inflow of dollars into the country via investments. In addition, investors' faith in the government will increase, making them to bring their investments into the country.

3. Less demand for dollars:

The demand for dollar has been abating as it's clear that FG won't devalue the naira. This has caused several industries to seek their raw materials locally.

#Sai_Baba

na true

Lanre01:
The Nigerian naira has been volatile on the parallel market in recent times, weakening against the dollar but it may start appreciating next week.

The currency was seen stable against the dollar towards the end of this week, although it lost two units against the greenback. It exchanged at 320 per dollar at the end of this week on the parallel market as against 318 per dollar last week.

Although there's a wide margin between the parallel and the official market, President Muhammadu Buhari anti-devaluation stance stands staunchly. According to reports, the decision of the CBN not to devalue is one of the reasons the currency had been losing value against the dollar of recent. However, the currency may start appreciating against the dollar next week going by recent events.

Here are three reasons why:

1. The dollar is weakening:

The US dollar has been weakening against major currencies recently. This is reflective in the price of a barrel of crude oil- which has hit its highest point in 2016. This factor may cause the naira to appreciate against the dollar next week.

2. 2016 Budget:

With the controversies surrounding the 2016 budget almost over, the document might be signed next week. There are reports the senate committee and the presidential committee have concluded work on the document. It's also expected that President Buhari will assent the document next week. This is expected cause an inflow of dollars into the country via investments. In addition, investors' faith in the government will increase, making them to bring their investments into the country.

3. Less demand for dollars:

The demand for dollar has been abating as it's clear that FG won't devalue the naira. This has caused several industries to seek their raw materials locally.

#Sai_Baba

CC: Lalasticlala

Stories!
The budget is just a paper without spine it won't change anything.

The demand for dollars is increasing not reducing.

Finally, the naira has been devalued given the sustained depreciation. The true value of the naira is what is obtained in the parallel market!

Plus China transaction is expected to advance this month.

Wishful thinking.

tuniski:


Stories!
The budget is just a paper without spine it won't change anything.

The demand for dollars is increasing not reducing.

Finally, the naira has been devalued given the sustained depreciation. The true value of the naira is what is obtained in the parallel market!

People that will never see anything good in themselves is very unfortunate.

4. THE EFFECTS OF BUHARI'S LOAN FROM CHINA (YUAN).

some people is as soiled as there mind... negetibe thinkers everywhere

op the budget is the reason the dollar will increase. As money circulates, contracts awarded, importation of material increase, demand for dollars increase.

4. If the 'T's make up.

Ok

okay

O ni reason

Good analysis bro,but i must admit that your no 2. reason lacks logic.which investor do you think in his right senses will bring in his capital to Nigeria through the #199 official dollar/exchange rate but would be unable to take it out together with his profits at that same rate but at the parallel market rate of #320 to a dollar?big firms are busy packing their bags and going and you're expecting others to move in droves?com'on bro,we're better than this.Truth is that what is holding the foreign investors from investing in Nigeria is not the budget but the archaic foreign exchange policy of this present government!

mekaboy:
op the budget is the reason the dollar will increase. As money circulates, contracts awarded, importation of material increase, demand for dollars increase.

no be so

mekaboy:
op the budget is the reason the dollar will increase. As money circulates, contracts awarded, importation of material increase, demand for dollars increase.

Importation from where and whose currency is been used.
In a few weeks from today, the naira would appreciate. The op couldn't have said it any better.

tuniski:


Stories!
The budget is just a paper without spine it won't change anything.

The demand for dollars is increasing not reducing.

Finally, the naira has been devalued given the sustained depreciation. The true value of the naira is what is obtained in the parallel market!

. Why are u so pessimistic ! Can't u be optimistic for once..it is like you people want things to go wrong so that u can cast blame on somebody .

what if it does not
We say GOD 4BID


make it depreciate 2 d extent dat $1 dollar = #100

Day dreaming

nice one,but, except the winches wont manipulate the naira against the dollar

Speculations are not always correct

amaechi1:


People that will never see anything good in themselves is very unfortunate.

God bless u tthey are too pesimistic and I wonder their problem : Even when it is apparent things are going to be better they will still have one reason or the other not to believe .

I pray it does

But is this really a time to rejoice ?

appreciate and then depreciate from next week? dey deceive yourself...

By how much?
Mtcheew