• Naira falls to N498/$ in forwards market

By Collins Nweze

Foreign investors that sold currency securities in the last one month have been unable to repatriate the proceeds to their countries due to persistent dollar scarcity, The Nation has learnt.

Many of the investors cash are trapped in Nigeria’s debt market as dollar liquidity dries up due to a lack of fresh inflows and persistent drop in crude oil prices. Crude oil revenue constitute over 90 per cent of foreign-exchange earnings for Nigeria.

Value of dollar transactions in the Investors’ and Exporters’ (I&E) Forex Window where foreigners buy dollars has dipped from $300 million per day two months ago to $20 million.

The naira has also depreciated past N498.5 to dollar on the one-year non-deliverable forwards markets following the continued drop in crude oil prices and consistent dollar scarcity.

One-year dollar/naira non-deliverable forwards stood at N498.5 points, up from previous close of N492.4. The naira saw one its biggest hit against the dollar after a historic oil price rout pushed United States crude futures below zero.

A forward market is an over-the-counter marketplace that sets the price of a financial instrument or asset for future delivery. Forward markets are used for trading a range of instruments, especially at the foreign exchange market.

Foreign reserves have fallen 12 per cent this year to $33.8 billion, raising concerns on the sustainability of the weekly. The naira has weakened 11 per cent to N425 to dollar in the parallel market since March 20 when CBN stopped foreign exchange interventions.

Analysts had tipped the naira to depreciate by about 20 per cent in the parallel market by next year as the impact of falling crude oil prices persists.

According to Bloomberg survey of investors, the local currency may be marked down by up to 20 per cent in 2021.

The survey, it said, the drop in foreign reserves and lower oil prices will probably force the CBN to devalue the naira, seen as one of the world’s most stable currencies by next year.

The stability of the naira against the dollar has continued to spark speculations, with many analysts predicting that the local currency will sooner or later be further devalued after the March 2020 exercise.

The Bloomberg survey of investors and analysts, showed that 10 out of 19 respondents expect the naira to be weakened in 2021, while five predict a mark-down as early as the second half of this year.

The remainder believe the CBN will keep a firm grip on the currency until 2022 or 2023.

https://thenationonlineng.net/dollar-scarcity-stops-capital-repatriation-by-investors/

More hard times await Nigerians as the government is on auto pilot for now.

Too many negatives. Whose fault, Buhari? or the world's economy.

Hmmm

If you like continue hiding your head in the sand.

Until YOU produce your nation is doomed.

Produce everything - Rice, pencils, clothes, footwear, sugar, building materials, razor blade, bicycles, etc.

A country of jobless people mocking their nation for even producing pencils is destined for failure.

Just when you think things can't get any worse

The Dollar tin effects many countries
Not only Nigerians...


But las las life will still go on

Incredible.

Nigerians will now better understand the consequence of bad governance.

A government that has failed to plan will definitely have a hard time during times like these. Fix electricity? No. Allocate the right budget to health and education? No. Develop the country? No. Well, this is the result.

The ride ahead is going to be very bumpy for Nigerians

Wow

*in P Square's voice*.....E don happen.!!!
Sarrki and Mannabbqgrillz,una darling President don put una for heavy gbese!!!

Can someone explain this to me?
In a lay man language

When the price of oil was high the common man never felt the impact, but when it's low the common man feels the impact more than anyone else,The population of those living below the poverty line is on the high side and no sensible government would like to add to the statistics,its high time we industrialize, it's high time we extract, process and produce tangible products.#we must turn today's stumbling block into tomorrow's stepping stone #God bless Nigeria#

Is a lie

SLAP44:
More hard times await Nigerians as the government is on auto pilot for now.

tot:
Incredible.

Nigerians will now better understand the consequence of bad governance.

A government that has failed to plan will definitely have a hard time during times like these. Fix electricity? No. Allocate the right budget to health and education? No. Develop the country? No. Well, this is the result.

All this are not new to a typical Nigerians... We are use to it

Investing in Nigeria is a risky venture. All the profits can be eroded by fx rate in an instant. Nigerians be prepared for suffering o

In one simple sentence:

Naija don cast

No wahala

ProfDview1:
Can someone explain this to me?
In a lay man language

When a foreign company makes an investment in a Nigerian company it gets issued a document called a Certificate of Capital Importation so long as the funds came in through official means and is documented by the CBN through the Nigerian bank which handled the process.

This document entitles you to purchase forex at official CBN rate when the foreign company wants to liquidate its investment and take out its funds.

The issue now is that due to the fall in price of crude oil the government and by extension the CBN is not getting enough forex therefore the foreign investors are unable to get an allocation of US $ so they can remit or repatriate the funds to their home countries.

rusher14:
If you like continue hiding your head in the sand.

Until YOU produce your nation is doomed.

Produce everything - Rice, pencils, clothes, footwear, sugar, building materials, razor blade, bicycles, etc.

A country of jobless people mocking their nation for even producing pencils is destined for failure.

What is this baba saying again?

The Nigerian economy is in for recession with all the present clueless economic team & policies.

They keep saying Buhari is fixing Nigeria. An economy not well plan will feel the worst of the Covid 19 era. Please God forgive us. Only you we look up to

but Nigerians are more concerned with rumored nnamdi Kanus death, than the suffering coming in Nigeria.

How come a serious topic on nairaland never goes beyond 2-3 pages, but tribal threads reach 20?

That’s to tell you the mindset of a typical Nigerian.

Anyways now is the time for wisdom and hardwork for those that can see what’s coming.

It's well

komai yayi daidai

Pls where can I apply for change of country?