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Nairaland Forum / Nairaland / General / Business / Fear Over MPC Outcome Fuels Naira Appreciation (27783 Views)
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Fear Over MPC Outcome Fuels Naira Appreciation by Mufasa1805(m): 6:18am On May 18, 2016 |
By Babajide Komolafe
The naira maintained its
upward trend in the parallel
market yesterday, appreciating
to N345 per dollar in response
to decline in demand for
dollars occasioned by anxiety
over the possible outcome of
the Monetary Policy
Committee (MPC) meeting
coming up next week. Vanguard investigation revealed that the parallel market exchange rate fell to N345 per dollar yesterday from N350 per dollar on Monday, implying appreciation of N5 for the nation’s currency. The naira has appreciated by N25 against the dollar since Friday when the parallel market exchange rate stood at N370 per dollar in response to anticipated increase in demand due to deregulation of petroleum products importation and rumours about imminent official devaluation of the naira by the Central Bank of Nigeria (CBN). Bureaux De Change operators attributed the increased appreciation of the naira to anxiety over the possible outcome of the MPC meeting scheduled to hold from Monday to Tuesday next week. “Demand for dollars is weak today because market participants, especially, buyers are anxious about the outcome of the MPC meeting”, said Aminu Gwadabe, President Association of Bureaux De Change Operators of Nigeria (ABCON). Confirming this development, Financial Derivatives Company Limited, said “Nigerians are extremely nervous about the possible outcomes of the next MPC meeting. This is because of a confluence of negative developments ranging from a sharp fall in the production of oil, deepening external reserves, spiralling inflation and sharply lower Gross Domestic Product (GDP) growth. There has hardly been a time in the history of Nigeria that the Central Bank has been faced with such stark and hard choices. Unfortunately, there is no silver bullet. Reviewing the impact of the sharp increase in inflation rate to 13.6 percent in April on the financial markets and the outcome of the MPC meeting, “The Company stated, “The MPC is expected to seriously consider the consequence of high inflation on investor returns. A tighter monetary environment (hiking interest rates) could result in investors shifting to the fixed income market due to attractive interest rates. In addition, NIBOR and T-bill rates would be expected to increase. “Given the underperformance of the stock market with a negative YTD return of (6.35%), we expect capital outflow from the Nigerian bourse, as investors become attracted to high interest fixed income instruments. “We expect a cocktail of measures or a sequence of steps aimed at controlling inflation, maintaining currency stability and stimulating growth. The order in which these decisions will be taken is a subject of great uncertainty and anticipation.” Source: http://www.vanguardngr.com/2016/05/fear-mpc-outcome-fuels-naira-appreciation/ |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by nairayouthcom(m): 6:19am On May 18, 2016 |
K FTC, space for sale 1 Like 2 Shares |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by tundelis(m): 6:20am On May 18, 2016 |
Chai d guy above ripped me of FTC space ni sha na 5g u dey use?? Nigga be chilling on FP since 2011 Moral lesson: don't stop talking until someone is ready to listen |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by hungryboy(m): 6:25am On May 18, 2016 |
Abeg, Na the same naira were been exchange for 200naira April last year be this? 59 Likes 3 Shares |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by mostyg(m): 6:33am On May 18, 2016 |
[i][/i] Legalise illegal refineries #legaliseiilegalrefineries The high cost of PMS is as a result of the umavailability and high cost of procuring the US dollars. As long as we are still an importing country with little or no product to export, this situation will continue till eternity.A good way of making petrol available at a cheap price is to refine locally. All our refineries are not working to capacity as at present. The private refineries granted licence have not started working.A short term solution is to legalise all the so called illegal refineries. The more they are, the more availabilty of fuel.Government should also regulate and monitor the quality of their products. In the end, more jobs, more cheap fuel will be our gain. 29 Likes 3 Shares |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by looseweight: 6:54am On May 18, 2016 |
Ok IAMLOOSEWEIGHT |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by Nobody: 6:56am On May 18, 2016 |
Buhari has always been a confused He-Goat.. Below is a picture of his displayed stupidity 41 Likes 1 Share
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Re: Fear Over MPC Outcome Fuels Naira Appreciation by makazona(m): 6:56am On May 18, 2016 |
Dollar Dollar Dollar! Its well |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by zeezyoung(m): 6:56am On May 18, 2016 |
Today is my Birthday show some love. 136 Likes 5 Shares |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by Joshuahunpe(m): 6:56am On May 18, 2016 |
. |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by Welber(f): 6:57am On May 18, 2016 |
Dollar heading for 400 Where is Buhari's Chinese RMB? 17 Likes 1 Share |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by femadesh(m): 6:57am On May 18, 2016 |
We will get there! |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by xreal: 6:57am On May 18, 2016 |
mostyg: that will be a good step to take. ....'they' wouldn't allow that to happen. 2 Likes |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by Nobody: 6:57am On May 18, 2016 |
Is it the same naira that has depreciated to #385 in the black market in 48 hours? 14 Likes 1 Share |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by Nobody: 6:57am On May 18, 2016 |
zeezyoung:Happy Birthday 3 Likes 1 Share |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by demarc001: 6:57am On May 18, 2016 |
All this one na story, na everyday hardship dey skyrocket under bubu 11 Likes 1 Share |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by adrainuche(m): 6:58am On May 18, 2016 |
Buhari and is 1889 economic policies is why we are here today ... SMH .. 20 Likes 1 Share |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by trailblaiza(m): 6:58am On May 18, 2016 |
Gf |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by mosalab(m): 6:58am On May 18, 2016 |
CHANGE is constant... NAIRA is a living testimony 5 Likes 1 Share |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by habex005(m): 6:58am On May 18, 2016 |
another propaganda in the news 8 Likes |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by Nobody: 6:58am On May 18, 2016 |
Probably it will depreciate again. Nonsense 4 Likes |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by MrScript(m): 6:58am On May 18, 2016 |
zeezyoung: Today is also my Birthday, show some love 30 Likes 3 Shares |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by cutetopsey(f): 6:59am On May 18, 2016 |
Hmmmmm!!! GHANGE! CHANGE!! CHANGE!!! hear what the bible says about CHANGE Proverb 24:21-22 My son, fear thou the LORD and the king: and meddle not with them that are given to CHANGE: For their calamity shall rise suddenly; and who knoweth the ruin of them both? check my signature 4 Likes 1 Share |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by skeendyke: 6:59am On May 18, 2016 |
nairayouthcom: For Kerosene @ topic What should I do with this piece of news? It is not good and it is not bad so I should just put it aside till it is N1 = $1. Space Bookers Association Of Nigeria - S B A N -, I hail una o. 2 Likes |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by Ukalejohn(m): 6:59am On May 18, 2016 |
Are they going on strike or not? |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by xreal: 6:59am On May 18, 2016 |
zeezyoung:Happy Birthday. 2 Likes |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by Nobody: 7:00am On May 18, 2016 |
Breaking News 2 Likes |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by diasporaman(m): 7:00am On May 18, 2016 |
At 345 naira to a dollar! Naira appreciation my foot. 6 Likes 1 Share |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by IVORY2009(m): 7:00am On May 18, 2016 |
Lie, Mallam Musa, is selling @ 370 per dollar And buying frm you @ 360 per dollar 4 Likes |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by gidimasters(m): 7:00am On May 18, 2016 |
Check My Signature |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by gabolak(m): 7:01am On May 18, 2016 |
Let us continue to pray 4 dis country & our leaders. stop d blame game & name calling. Nigeria will be great again. IJN. 2 Likes 1 Share |
Re: Fear Over MPC Outcome Fuels Naira Appreciation by babs01(m): 7:01am On May 18, 2016 |
the way d naira is depreciating eh 2 Likes |
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