The naira slumped to a new all-time low of 470 to the dollar on the parallel market on Wednesday, posting its biggest daily decline since the Central Bank of Nigeria adopted a flexible foreign exchange regime.

The local currency stood at 452 to the dollar at the close of trading on Tuesday, down from 445 against the greenback on Monday.

The naira closed flat at 312.99 against the dollar at the interbank market on Wednesday, according to data from FMDQ OTC Securities Exchange.

Traders and analysts said dollar liquidity remained a major challenge in the market amid surging demand pressure on the greenback by parents paying schools fees of their children studying overseas as well as travellers.

The President, Association of Bureau De Change Operators of Nigeria, Alhaji Aminu Gwadabe, told our correspondent, “The rate is N472 to the dollar as we await the kick-off of the distribution of dollars to the BDCs by Travelex on Friday.

“As we speak, no bank is dispensing dollars to the BDCs. The BDCs’ accounts were debited by some banks since Monday and they are not able to pay any of the BDCs so far debited by them. This is really sending a bad signal in the market.”

A currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, said the parallel market was being used as a mirror of what the naira should be doing, adding, “For me, it may not really reflect naira’s performance. But basically, it is a demand and supply dynamics.”

According to him, the volatility in the parallel market will continue as long as the 41 items excluded from the official forex market remain banned.

“Around this time, a lot of people are paying school fees abroad and we see a lot of demand for forex for other sundry expenses or obligations. So, all of these will put pressure on the naira at the parallel market,” he added.

Noting that the naira had been relatively stable in the official market, Ezun said, “But the parallel market will always respond to liquidity, which is not available. The parallel market will help you to assess the level of liquidity in the market.

“So, if liquidity is high, we will see it in the parallel market. But as we speak today, there is no liquidity in the market, and that is why we keep seeing that volatility in the parallel market.”

The Ecobank analyst said the naira might hit 500 against the dollar in the coming days.

He explained, “The only way out is when there is dollar inflow into the market, and this is one of the reasons the CBN says it is not willing to cut the Monetary Policy Rate now. The idea is that why you are still trying to woo foreign investors into your fixed-income market, you should continue to be able to assure them of returns on their investment.

“What the CBN can do is to use monetary policy to keep encouraging inflows into the market.”

http://punchng.com/naira-plummets-time-low-472dollar/ lalasticlala, dominique

God please come to our rescue

we neva chi chum chin

Saiiiiiii Casandra

These are some of the outcomes of Gen. Casandra, his family & cronies continues engaging in forex round tripping.

All tnx 2 da "boss"

Buhari should ban the use of dollars in this country and watch dollar nosedive to N1 to a dollar. Buhari should effect this to complete the change he has introduced else watch a dollar cost over a N1000 before year end.

ThundrCork:
Nigerians should stop using dollars.

stop keh...all the sensitive tins we import into the country are been paid for in dollars, pple also pays schools fees in dollars so what we should b looking at is how to increase the inflow of dollar by exportation...only exportation i mean huge tonnes of goods can help save d naira a bit.
.

LL

ThundrCork:
Buhari should ban the use of dollars in these country and watch dollar nosedive. Buhari should effect this to complete the change he has introduced else watch a dollar cost over a N1000 before year end.

not dat pple are buying d dollar to make day to day transaction in our local market, the dollar they buy is used for foreign transactions...

alkines:
stop keh...all the sensitive tins we import into the country are been paid for in dollars, pple also pays schools fees in dollars so what we should b looking at is how to increase the inflow of dollar by exportation...only exportation i mean huge tonnes of goods can help save d naira a bit.
.

Yes massive exportation is the solution but how many Nigerians are exporting? Look around you, how many people do you know that export? The government alone is not sufficient to provide enough fx for its people. Nigeria is big and everyone is involved in importation one way or another but a micro few are involved in exports

The kind afternoon thunder way go fire Buhari go first use his ears for rehearsal before the final striking

This thing will soon rise to 1000/$

Hmmm na wa o

600 loading

Hmmm, dollar may well hit #500

.... What is FG doing about this?

.. oh wait .. NOTHING apparently!

OMG For real?
Exportation is the best solution.
Let's export President Buhari to Saudi Arabia
What is this I'm thinking sef?

Anyway, we should focus on Exportation of agricultural products like acha, millet, cocoa, potatoes, Etc, AND Manufacturing of their finished products too.

Instead of importing Swiss watches, let's import talent of producing these watches, train our people, then produce our own watches creatively, with our raw materials and export (sell) back to the Swiss.

Do you know what's happening in Wase, Plateau state? Hmm... Very disturbing.

Chinese people buy raw Lead materials cheaply, transport it to their country, manufacture these mobile phones you're using to read this, and then sell it to you at high costs.

In pidgin English, we be mumu ooo.

Nigerians, we better wise up, if not.. Hmm.

If am to speak people will call me a Wailer which am proud to be one, but I hope Nigerians are seeing how the Naira is almost getting near extinct? What a CHANGE

ok

1000 Naira to 1 dollar loading........Nigeria is in ruins

The change dey promised - 1naira to 1 dollar.


The change we r goin to c - 1000naira to 1dollar.

Fück!!!

just a little further, #28 left

Is buhari that incompetent?

Why all these now?

Well i don't care!

Lol but una like bad news sha.. why does this naira crash matters always hit front page in a split second

who are we going to blame now?

i guess buhari

ah..buhari it shall not be well with you

the thunder way go fire you go first go redemption camp go receive modifications before he go strike you

Panicking in the face of crisis kills faster. Nigerians, let's stay calm and collected and keep praying for the country.
The mess of yesteryears is now full-blown but Buhari needs to stay dogged with the right economic team to turn things around
with the help of the Almighty. I'm quite positive, we'll pull thru.

When we all get to heaven,
what a day of rejoicing that will be!
When we all see Jesus,
we'll sing and shout the victory.

Jesus our Great Master is here!


Luke 21:25
25 And there shall be signs in the sun, and in the moon, and in the stars; and upon the earth distress of nations, with perplexity; the sea and the waves roaring;



Jesus is here and we are all going to heaven

at the mercy of the gods. Buhari, APC do something

2dugged:
just a little further, #28 left

Why evuls

Good bye to the Nigerian Naira. RIP

Is it Jonathan? Stop the blame game and do something