There was confusion in the market yesterday as the naira slumped to a new low in both the official and parallel markets, exchanging at N292.90 and N375 to the dollar.

The local currency however closed at 292.90 to the dollar on the interbank rate after just one transaction was carried out, with dollar supply drying up and no intervention by the CBN, traders said. Traders had expected the CBN to intervene to ease dollar shortages, but that did not materialise.

The naira’s free fall surprised many stakeholders, whose thinking is that the new flexible forex policy introduced by the Central Bank of Nigeria (CBN) would stabilise the currency.

Bureau De Change Operators of Nigeria (ABCON) President Aminu Gwadabe said commercial banks were playing big in the parallel market, manipulating naira rates against the greenback. He told The Nation that most lenders keep two books – one for the official rate and the other for dispensing dollar in the parallel market.

“Demand at the parallel market is rising seriously. The banks are now playing big in the parallel market and there is basically no operating rules in the market. It is a market of who is who controlled by the banks,” he said.

The BDC chief said CBN Governor Godwin Emefiele should call an emergency meeting of all stakeholders on the fate of the local currency. To him, this is the only way out because “things are getting out of hand” as the market liquidity has dropped.

Nigeria has been grappling with a currency crisis since crude oil prices dropped by about 43 per cent from an average of $100.35 throughout 2014 to an average of $57.20 for the first six months of last year. It is now around $48.09 per barrel.
Specifically, the drastic fall in the price of crude oil, which constitutes the largest component of Nigeria’s forex reserves, has cut dollar earnings from about $3.2 billion monthly to about a billion dollar for the same period. This has negatively impacted on the value of the naira.
The woes of the naira will worsen in the coming months, with the local currency expected to exchange for N390 to the dollar at the close of the year, a report by Renaissance Capital (RenCap), an international investment and research firm, said.
Currency traders introduced a maximum resale premium on dollar trades to try to boost liquidity while investors have welcomed the removal of currency controls but many are still steering clear until the economy shows signs of a concrete recovery.
“Most investors would like to see a more liquid forex market before resuming purchases of local assets,” said Samir Gadio, head of Africa strategy at Standard Chartered Bank.
“Given the significant discount of naira-settled futures, a number of offshore financial institutions and hedge funds could be tempted to get involved in the foreseeable future.”

http://thenationonlineng.net/market-confusion-naira-exchanges-n373-dollar/

It will never be well with Buhari, Lai Muhammed, Elrufai, and all APC families (zombies) worldwide

cc: NgeneUkwune, omenka, PassingShop, et al

Buhari is the worst thing to have befall Nigeria... We never had it this bad

Oluwabusobomi:
It will never be well with Buhari, Lai Muhammed, Elrufai, and all APC families (zombies) worldwide

It is well with you.

Don't insult someone's father coz u won't be happy when they do same to you.

Pls enlightened us on what we can do better as a country if you can't proffer a solution I think you should go back to sleep thank you.

Oluwabusobomi:
It will never be well with Buhari, Lai Muhammed, Elrufai, and all APC families (zombies) worldwide

For the fraudulent nature of the names above, I am tempted to say a big Amen to your prayer!

They put us in this mess through their propaganda and deceit

sarrki:



It is well with you.

Don't insult someone's father coz u won't be happy when they do same to you.

Pls enlightened us on what we can do better as a country if you can't proffer a solution I think you should go back to sleep thank you.

Zombie, is that all you can say?

Meanwhile, tell your dullard of Daura to swallow his ego and seek the advice of those who can take us out of this mess

Jombojombo:

For the fraudulent nature of the names above, I am tempted to say a big Amen to your prayer!

They put us in this mess through their propaganda and deceit

Whao it seems ladies are not smiling ooooo 1st & 3rd to comment I understand your pain .

No free money again
The Era of free money is gone for good

Oluwabusobomi:

Zombie, is that all you can say?

Sis proffer a solution so that we all learn from this

Oluwabusobomi:

Zombie, is that all you can say?

Meanwhile, tell your dullard of Daura to swallow his ego and seek the advice of those who can take us out of this mess

Over 20 billion dollars unremitted to federation account. Nigeria economy will crumble if nothing is done ...........HRH Emir Sanusi Lamido Sanusi .
Bingos: He is an alarmist.
Whoever wins 2015 will never find it easy. Over 30 trillion is mismanaged, unaccounted for or missing under Jonathan. ...... Prof Charles Soludo.
Bingo's : He is desperate .
Our reserve is depleted and our savings squandered. Our nation is in trouble. ... Dr Oby Ezekwesili.
Bingo's : She is an alarmist looking for appointment.
For seven months, NNPC did not remit any money into federation account. When I called as a sitting governor and major oil producing state, Deziani Alison Madueke refused to take my call....... Senator Godswill Akpabio.
Bingo's : He is trying to please Buhari.
I wanted to save but Jonathan have no political will. That is why we are in crisis because we squandered our boom. .... Okonjo Iweala. ...
Bingo's : She doesn't want to be arrested
Dear Noisy Bingo's,
Whatever is the state of economy today was prophesied by our own Nigerians long time ago.
The only problem is that your memory capacity is less than 1 milibyte.
Prof. Soludo wrote to Nigerians what they will suffer irrespective of the party that will win.
Why then are you celebrating IMF recession?
You ignored Emir Sanusi warning
You ignored Oby Ezekwesili warning
You ignored Prof Soludo warning
You ignored Akpabio confession
You ignored Okonjo Iweala testimony.
You are now celebrating naira free fall
Your thinking is damn scary

sarrki:


Whao it seems ladies are not smiling ooooo 1st & 3rd to comment I understand your pain .

No free money again
The Era of free money is gone for good

Typical of a deluded zombie

sarrki:



It is well with you.

Don't insult someone's father coz u won't be happy when they do same to you.

Pls enlightened us on what we can do better as a country if you can't proffer a solution I think you should go back to sleep thank you.

every reasonable enlightment will fall on buhari deaf earing side!

Jombojombo:

Typical of a deluded zombie

Make your point and don't rant

Thank you sis for your understanding

Lalasticlala

It is time for dinner

lytech1:

every reasonable enlightment will fall on buhari deaf earing side!

No comment for you right now.

[quote author=Jombojombo post=47796956]Buhari is the worst thing to have befall Nigeria... We never had it this


O ye of little faith the country will bounce back with oil or no oil

[quote author=sarrki post=47797500][/quote] I am tempted to chop ban on your head

Oluwabusobomi:

I am tempted to chop ban on your head

Lol . I thought we are having a discussion ?

fire on the mountain

Please FG help us here in Togo, Imagine I changed Naira today only to see that exchange rate now goes for 916 cfa to 1000 naira, please nau you people should help us, Nigerians hardly comes to Togo nowadays to purchase goods cos of the exchange rate... Please help o

Oil disease

At the moment, there is nothing the government can do, except oil prices rise again.....bringing in the dollars to buffer the naira.

There is an alternative, which this APC government and the PDP before them Have Not Taken.....and that is spending more on power and education and less on everything else....with the aim of Nigeria going industrial.

We cannot rely on oil. We must face the cold reality that we are not a rich nation, and we must work hard for our money.

Na today?

Buhari why? We still dey wait upon the one naira to a 'dullard'

It is well naija.

Buhari,is this change or Chains?

If 1dollar hasnt equal #500 yet, say baba till 2023..

Chai,
Zombies, what do you have to say

Dead economy

When the president is older than the country, what do you expect?


I cant stand any longer


I KNEEL WITH BUHARI

sarrki:



It is well with you.

Don't insult someone's father coz u won't be happy when they do same to you.

Pls enlightened us on what we can do better as a country if you can't proffer a solution I think you should go back to sleep thank you.

LET ME ASSIST MY BROTHER TO PROFER SOLUTION AS YOU REQUESTION: Buhari should RESIGN, he is incompetent

Its high time Buhari sack this emefiele of a guy. Haaaan, You persuade baba to allow u devalue our currency, now, it is done and the problem is getting worse. Buhari should sack him, patapata, Wailers will only wail for a week and things will become normal Im getting sick of Nigerian economy i swear