[size=18pt]Nigerian naira weakens as dollar demand grows
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The Nigerian naira weakened slightly to 150.30 to the U.S. dollar on Wednesday after the central bank turned away some of the demand for dollars at its bi-weekly auction, traders said.

The central bank sold $150 million at a rate of 148.56 at Wednesday's auction, short of the $183 million demanded, compared to $160 million sold at 148.52 at Monday's auction.

Dealers said there were some dollar sales by energy companies, but not significant enough to support the naira on the interbank market, where it closed at 150.20 on Tuesday.

"The market was still liquid from the dollar sales by some major energy firms in the week, but we are trading on expectations," one dealer said.

"Most of the oil firms are already done with their month-end dollar sales and we are not expecting many inflows again until the next month-end cycle," he said.

Traders said the naira could continue to depreciate gradually as dollar liquidity dries up at the interbank market and demand shifts to the central bank auctions.


http://af.reuters.com/article/investingNews/idAFJOE6730AC20100804

Thanks for the news! =)
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The CBN will have to brace up because in the next few weks there will be even higher demand for US Dollars.

The reason for this is because the disbursement of the 200billion Intervention Fund for manufacturers has commenced and manufacturers has start massive importation of equipments.

But this is not a challenge that the CBN can't handle.

I want the dollar to go up more.

goddam soludo

there was a time when dollar was 128 to the naira and still dropping

goddam soludo

there was a time when dollar was 128 to the naira and still dropping

Emm, I think the fellow at CBN now is actually Sanusi Lamido not Charles Soludo (or is your mis-representation in the sound of their last names?)

what will be the euro faith?@the poster=?

I remember when #100 = a dollar

chiogo:

I remember when #100 = a dollar

Oh me too. Rem those days, when we were still swimming in that abdominal pouch called womb lol

Ileke-IdI:

Oh me too. Rem those days, when we were still swimming in that abdominal pouch called womb lol

LOL shut up. I was no longer in the womb then. Maybe you were, youngin.

Emm, I think the fellow at CBN now is actually Sanusi Lamido not Charles Soludo (or is your mis-representation in the sound of their last names?)

nope , soludo devalued the naira during his tenure.

Thanks!
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oyb:

nope , soludo devalued the naira during his tenure.

Soludo did not devalue the Naira against the dollar unless you mean Soludo caused the plunge in oil price that we saw in 2008. The exchange rate depends on the demand and supply interactions between the various currencies.

When dollar revenues fell precipitously because of the oil price crash, dollars became scarcer in Nigeria leading to the CBN dipping into the foreign reserves, depleting it from +$60bn, to defend the Naira against the dollar.

Nigerians' fixation with exchange rate means that we assign blame wrongly. Soludo's ''fault'' was that he didn't throw more dollar reserves at the market to keep it at N110 to 1USD, which is what we did in the last oil price crash, in the early 80s. It's a basic misunderstanding of economics to think that the Naira's loss of value must be stopped at almost all cost.

That`s not good[img]http://s07.flagcounter.com/count/DymW/bg=ffffff/txt=ffffff/border=ffffff/columns=1/maxflags=1/viewers=3/labels=0/[/img]

Soon we we will start spending dollar to buy pure water

Is this surprising?