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Stats: 1,881,823 members, 3,804,292 topics. Date: Thursday, 21 September 2017 at 02:41 AM

Naira Falls Towards N400-$1 As Electioneering Resumes - Business - Nairaland

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How Naira Went From N525/$1 To N400/$1 In 3 Days / Naira Crashes To N400/$1 At Parallel Market, Lowest Rate Ever / It’s N209 To $1 As Appetite For Dollars Falls (1) (2) (3) (4)

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Naira Falls Towards N400-$1 As Electioneering Resumes by ujuvals: 3:38am On Sep 12
The Nigerian Naira is expected to trade closer to N400 per one dollar as election campaigns for the 2019 elections enter into full swing.

Already some presidential candidates are gesturing, and financial analysts says that could result in a negative trend in 2018.

Electioneering is expected to push up government spending in 2018 and the risk of the budget deficit being monetised will increase, which would be negative for the naira, according to the Lagos arm of Russian Investment Bank, Renaissance Capital.

The foreign exchange market analysts, however indicated the naira was currently undervalued.



“On 2 August, banks began to publish indicative prices based on trades at the NAFEX window, at the behest of the authorities. This led to the adjustment of the interbank FX rate to $1/N366, from $1/ N315 previously, and its convergence with the only market determined rate (outside the parallel market), the NAFEX rate.

“At today’s interbank rate of c. $1/N360, the naira is cheap; it is 14 per cent undervalued, according to this analyst’s 13-year real effective exchange rate model.

“We think a stronger external sector and tighter monetary policy imply naira appreciation risk in the near term, and as such, we revise our YE17 FX rate forecast to $1/N332 as against $1/N447 previously,” they posited.

They said the Naira would decline in 2018 based on macro economic realities.



“Looser monetary policy in 2018 implies a weaker Naira,” the analysts stated, adding that Godwin Emefiele, the central bank governor, had expressed a desire for policy easing in a mid-2017 monetary policy committee (MPC) statement, but thinks appropriate liquidity conditions should precede it.

They, therefore, forecast an FX rate of $1/N373 at year end 2018 (YE18).

“Our FX model predicts a rate of $1/N373 at YE18; assuming monetary policy becomes accommodative and little upside for the external sector. We think it is probable that instead of appreciating in the near term, the naira weakens gradually to $1/N373 at YE18, which would signal price stability
http://www.herald.ng/naira-to-fall-further-2018/
Re: Naira Falls Towards N400-$1 As Electioneering Resumes by Dabigbroda(m): 3:48am On Sep 12
Make e reach us oh

2 Likes

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by 9japrof(m): 7:28am On Sep 12
grin

1 Like

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by DanielsParker(m): 7:29am On Sep 12
.
Re: Naira Falls Towards N400-$1 As Electioneering Resumes by YelloweWest: 7:29am On Sep 12
Buhari is working.


If buhari contests and wins the next election, that will be the final straw for me having hope in this country.

60 Likes 4 Shares

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by Capsule101(m): 7:29am On Sep 12
I don't support dis motion it would not come to pass...we won't spend too much on d election we re not in Jonathan's regime dis is BUHARI

12 Likes

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by sunshineV(m): 7:29am On Sep 12
Baskats
Re: Naira Falls Towards N400-$1 As Electioneering Resumes by orobs93(m): 7:29am On Sep 12
k
Re: Naira Falls Towards N400-$1 As Electioneering Resumes by priceaction: 7:29am On Sep 12
All these jungle mushroom newspapers self. Newspapers of doom. It won't happen. We have heard enough of these hardship. That's why fg has to trade with caution in dealing with the ipobs and her alley ( nd militants) because that's the only thing that can really crash naira for now .

8 Likes 2 Shares

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by coolestchris(m): 7:29am On Sep 12
K

10 Likes 1 Share

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by sainty2k3(m): 7:29am On Sep 12
The only thing we do in Nigeria is election. See them already talking of 2019 election in 2017 barely 2 and a half year after the election that crashed our naira value

43 Likes 3 Shares

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by simpleshawls(m): 7:30am On Sep 12
We have clean london use iphone 6 @ cheap rate kindly check my signature

1 Like 1 Share

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by fakuta(f): 7:30am On Sep 12
How does that affect my farm products?
Re: Naira Falls Towards N400-$1 As Electioneering Resumes by hardywaltz(m): 7:30am On Sep 12
Atiku we know u are the one buying all the dollars
Re: Naira Falls Towards N400-$1 As Electioneering Resumes by maximunimpact(m): 7:30am On Sep 12
The naira is yet to recover from the damage done to it in 2015, that was when "dollarisation of the economy" happened. Politicians were practically using the dollar for virtually anything - during the national and even state conventions of both PDP and APC, most delegates were bribed with as much as 5k dollars each. Then i was working in a bank, i saw things. Depositors literally queued with dollars and other hard currencies, it was a amazing seeing back then more transactions done with hard currencies.

If you notice, the naira got into trouble shortly after 2015 polls. If this pattern continues, we may very well witness another onslaught on the naira.

13 Likes 2 Shares

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by Nwachineke1980: 7:30am On Sep 12
Hope they wouldn't blame Jonathan?

7 Likes

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by Paperwhite(m): 7:30am On Sep 12
And where are the APC voodoo economists and zombies who are masturbating that Nigeria is out of recession?

7 Likes 1 Share

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by benosky(m): 7:31am On Sep 12
Really??
Re: Naira Falls Towards N400-$1 As Electioneering Resumes by Caspian22(m): 7:31am On Sep 12
Good news for some, Bad news for many

1 Like

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by NaijaMutant(f): 7:31am On Sep 12
APC cabals will definitely pump in all the hoarded dollars

1 Like 1 Share

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by autotrader014(m): 7:33am On Sep 12
Isiokay
Re: Naira Falls Towards N400-$1 As Electioneering Resumes by Cyynthia(f): 7:33am On Sep 12
Very bad.
Re: Naira Falls Towards N400-$1 As Electioneering Resumes by Newbiee: 7:33am On Sep 12
All these shenanigans about dollars and other sabotaging activities would stop after Baba wins 2019. The second tenure of Baba would be more fruitful.

1 Like 1 Share

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by dheespectre: 7:33am On Sep 12
Waoh!!

Meanwhile, 1.2kva inverter for sale.
Can carry all your basic household equipments.

N20000 only
Lagos

0811-9387235

2 Likes 2 Shares

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by dotcomnamename: 7:33am On Sep 12
Isorite
Re: Naira Falls Towards N400-$1 As Electioneering Resumes by abescom: 7:34am On Sep 12
I won't mind honest. It may sound selfish as I earn in dollars but would ordinarily have wanted it to crash but of what significant effect does a crash have on prices of commodities?

The stupiid marketers have till date refused to reduce the prices of commodities that jacked up when the naira was circa 500 to a dollar. My $1000 that was worth 500k has reduced to just 365k but I still buy stuffs at the price I was buying when it was 500k.

11 Likes 1 Share

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by stcool(m): 7:34am On Sep 12
Which Kind Nonsense and Negative News be dis undecided

1 Like

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by CallMeNJay: 7:34am On Sep 12
We can't wait
Re: Naira Falls Towards N400-$1 As Electioneering Resumes by ashkenking: 7:34am On Sep 12
I pray I won't b around to witness that
Re: Naira Falls Towards N400-$1 As Electioneering Resumes by olayinkajnr(m): 7:34am On Sep 12
Bad news sha
Re: Naira Falls Towards N400-$1 As Electioneering Resumes by KEVIND: 7:36am On Sep 12
Its expected because what CBN have been doing thus far is window dressing to keep the Naira stable.

Meanwhile, leadership should be by example but what we have now is 'do what I say but don't do what I do' by APC led govt.

Example:

WHERE ARE THE CHILDREN OF THE BUHARI THAT PRESENTED HIMSELF TO HIS GULLIBLE SUPPORTERS AS A "POOR" MAN WITH NEVER GROWING 150 COWS?
Let me help you with factual information:
1. Fatima Buhari (daughter) is in Stratford, Uk.
2. Nana-Hadiza (daughter) lives in Buckingham.
3. Safinatu Muhammadu (daughter) is in Arden University, UK.
4. Halima Buhari (daughter that is not so intelligent) just finished law school in Lagos and has gone back to Leicester, UK.
5. Yusuf Buhari (son) is in the university of Surrey, UK.
6. Zahra Buhari (daughter) married but still visiting from her surrey duplex in the UK.
7. Aisha Buhari and Amina Buhari (daughters), both just got admissions into Surrey University and British school of Lome.
While APC could still have something to say against Governor Fayose whose children school in Nigeria.
#APCHypocrisy

21 Likes 6 Shares

Re: Naira Falls Towards N400-$1 As Electioneering Resumes by femo122: 7:39am On Sep 12
shocked

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