[size=13pt]Naira depreciates by 226 kobo in interbank[/size]

By Babajide Komolafe & Nnenna Ezeah
LAGOS — The naira suffered a severe depreciation in the interbank market, yesterday, losing 226k to the dollar following an upsurge in demand for foreign exchange prompted by the removal of limit on banks’ foreign exchange sale to Bureaux de Change,BDCs.

Meanwhile, Brent crude fell more than two dollars toward $106 a barrel with traders and investors anticipating the resumption of oil exports from OPEC-member Libya as a six-month civil war there appeared close to an end.

In the interbank foreign exchange market, the interbank exchange rate rose steeply to close at N155.95 per dollar from N153.695 per dollar on Friday, indicating 226 kobo depreciation for the naira.

The declining fortune of the naira also extended to the official market where the naira lost 49 kobo due to increased demand for foreign exchange. Results of the bi-weekly foreign exchange auction by the apex bank showed that demand rose by 18 per cent to $562 million from $476 million at the last auction.

Though amount offered and sold by the apex bank also increased by 14 per cent to $400 million, it was still inadequate to meet the demand, hence the unsatisfied demand of $162 million. This prompted the official exchange rate to rise to N151.85 per dollar from N151.35.

In the international oil market, Brent crude fell more than two dollars toward $106 a barrel with traders and investors anticipating the resumption of oil exports from OPEC-member Libya as a six-month civil war there appeared close to an end.





Brent crude was down $2.30 to $106.32. U.S. crude was up 35 cents to $82.61 a barrel after dropping to as low as $81.13 earlier. The front-month September U.S. crude contract expires on Monday. “Brent is taking more of a battering but that’s only to be expected,” said Christopher Bellew, a trader at Jefferies Bache. The divergence is just another graphic example of the dislocation between WTI and Brent.”

Libya pumped around 1.6 million barrels per day (bpd), nearly 2 per cent of global supply, before the war cut output. Most of Libya’s high-quality crude flowed to European refiners, but after Libyan exports ceased, tighter supply drove Brent to a two-year high of $127.02 in April. Output has fallen to almost nothing during the conflict. The question now is how soon Libyan output will be restored. Carsten Fritsch, an analyst at Commerzbank in Frankfurt, said it could be about six months before output climbs back to 1 million bpd or so, having looked at what happened in Iraq in 2003.

“Output was close to zero in the months after the U.S. invasion,” he said. “The big question is how much damage has been done to the oil facilities in Libya where the fighting has gone on much longer than in Iraq. There’s a risk it may take a bit longer in Libya.” The premium that has been in the Brent oil price since civil war broke out in Libya should now start to shrink, but Fritsch said this is unlikely to happen overnight.

“Given that the Brent price was below $100 before the uprising started in March, prices have some way to go, but it won’t come down as quickly.”

Olivier Jakob, oil analyst at Petromatrix, agreed saying he did not expect a flood of Libyan crude oil on a very prompt basis as when it restarts some of the oil production will probably go to local refineries. Tight supplies of Libya’s light sweet crude in Europe helped fuel a widening of the spread between Brent and U.S. crude.

The spread is already narrowing from a record $26.69 reached last week, and could contract further with the prospect of resumption in Libyan supply. “The weekend event in Tripoli is obviously more negative for crude oil in Europe (or the U.S. Gulf) than in Cushing and the immediate overnight response has been not surprisingly a narrowing of the Brent premium to WTI,” said Jakob.

http://www.vanguardngr.com/2011/08/naira-depreciates-by-226-kobo-in-interbank/

I also read about it yesterday.
Instead of this Sanusi man of a thing to concentrate how to build or reserve an pump alot of money into Bereau De Change, he is busy doing rubbish, He is the worst we have had for decade.

May God help us in these country Nigeria.AMEN
www.web4lagos.com

I also read about it yesterday.
Instead of this Sanusi man of a thing to concentrate how to build or reserve an pump alot of money into Bereau De Change, he is busy doing rubbish, He is the worst we have had for decade.

rubbish [img]http://2.s07.flagcounter.com/count/DymW/bg=E6E6E5/txt=E6E6E5/border=E6E6E5/columns=1/maxflags=1/viewers=3/labels=0/[/img]
[img]http://s07.flagcounter.com/count/DymW/bg=E6E6E5/txt=E6E6E5/border=E6E6E5/columns=1/maxflags=1/viewers=3/labels=0/[/img]

It is not Sanusi's fault.Our economy relies heavily on revenue from crude oil exports and manufacturing is virtually non existent. THE CBN had even tried to prevent this by 'placing a limit' on the demand for dollar and this in turn, created a parallel market where there has been a huge margin between the official and black market rates. The depreciation in Naira is caused by market forces- demand for dollar as against Naira has increased  and exacerbated by the fact that our economy is largely import oriented. More so, our currency is just a 'transitional  legal tender' with on 'real value' attached to it.

Let's get it right please!

deenee:

It is not Sanusi's fault.Our economy relies heavily on revenue from crude oil exports and manufacturing is virtually non existent. THE CBN had even tried to prevent this by 'placing a limit' on the demand for dollar and this in turn, created a parallel market where there has been a huge margin between the official and black market rates. The depreciation in Naira is caused by market forces- demand for dollar as against Naira has increased  and exacerbated by the fact that our economy is largely import oriented. More so, our currency is just a 'transitional  legal tender' with on 'real value' attached to it.

Let's get it right please!

My brother, all dat one is not concern the boys on the street. Let them do what they need to do to keep the economy afloat, that's why they are there!, sanusi, johna oh, they are public servant, so must deliver!, or do you expect me without any tiny power to go and fix that for them?

damola1:

My brother, all dat one is not concern the boys on the street. Let them do what they need to do to keep the economy afloat, that's why they are there!, sanusi, johna oh, they are public servant, so must deliver!, or do you expect me without any tiny power to go and fix that for them?

You are quite right about this, but also bear in mind that it is our 'collective responsibility'

GOD BLESS NIGERIA!

My brother, i hear you correctly, but if everyone is responsible for something, then nobody is

Right now, I am responsible for my family, my colleagues, and so and so forth, so, that's my collective part, but they went to skool or in fact contested to become responsible for this position, either they do it very well or resign, if they know they are not capable. Chikena,

God help us!

What a funny country full of shameless leaders and cowards as followers.

marcus1234
Posts: 808

Offline


hi bro, what did china did, to you ??

we are also losing money because of US,

deenee:

It is not Sanusi's fault.Our economy relies heavily on revenue from crude oil exports and manufacturing is virtually non existent. THE CBN had even tried to prevent this by 'placing a limit' on the demand for dollar and this in turn, created a parallel market where there has been a huge margin between the official and black market rates. The depreciation in Naira is caused by market forces- demand for dollar as against Naira has increased  and exacerbated by the fact that our economy is largely import oriented. More so, our currency is just a 'transitional  legal tender' with on 'real value' attached to it.

Let's get it right please!

Why is the CBN governor earning salary and huge allowances?

deenee:

It is not Sanusi's fault.Our economy relies heavily on revenue from crude oil exports and manufacturing is virtually non existent. THE CBN had even tried to prevent this by 'placing a limit' on the demand for dollar and this in turn, created a parallel market where there has been a huge margin between the official and black market rates. The depreciation in Naira is caused by market forces- demand for dollar as against Naira has increased  and exacerbated by the fact that our economy is largely import oriented. More so, our currency is just a 'transitional  legal tender' with on 'real value' attached to it.

Let's get it right please!

No it's my fault, please that is just random excuse. Tell me what country is not dependent on Crude Oil imports? The question is what efforts is Sanusi doing to make the Naira appreciable, and even wanted. You talked about manufacturing, if you know that's how you gonna balance the demand, what has he done about it? The dude is just clueless; imposing limits WILL NOT solve the situation, smart economist look for ways to balance the equations without restrictions.

SANUSI, SANUSI, SANUSI. WOULD HAVE BEEN BETTER IF YOU WERE THE ONE JONA SACKED,

is sansusi death?

M M M:

is sansusi death?

Your english vocabularies killed him
you this man made mad
anyway ur mad already, so u dnt knw wat u are doing

strangest:

SANUSI, SANUSI, SANUSI. WOULD HAVE BEEN BETTER IF YOU WERE THE ONE JONA SACKED,

A few days back, l noticed the downward spiral of the Naira and mentioned it on another thread

@Lastpage [Quote]I thought l was the only one "wondering" where Oga GEJ is getting his Price Index (or cost of commodities) from!

Has anyone seen the way the NAIRA is nose-diving against other currencies, even when those currencies themselves are at absolute rock-bottom?

Inflation is truly down, Just like the NIARA!

I just dey laugh Oooo! Grin Grin[/quote]

Without sounding sentimental, if you're not up to the job you're being paid for, JUST RESIGN. S-I-M-P-L-E-S!

All these excuses left, right and center, does not cut-it at all.

Its part of the CORE RESPONSIBILITY OF A CBN GOVERNOR to ensure CURRENCY STABILIZATION.

If not that the other "foreign currencies" themselves are experiencing an upheaval, NAIRA would probably be doing like:
1Euro = #500
1GBP = #700
1$ = #300

Sanusi whaaat?

Thats what we get when we have SQUARE PEGS IN ROUND HOLES!