Oyetunji Abioye

THE naira tumbled against the United States dollar to 490 on Monday from 487 on Friday, as acute shortage of the greenback continued to batter the economy and the country’s foreign exchange markets.

Before falling to 487 on Friday, the local currency had consecutively closed flat at 485 for four days last week.

The severe shortage of the dollar has put the naira under persistent pressure at both the official and parallel forex markets.



The global crash in the prices of crude oil, Nigeria’s main forex earner, has brought untold hardships to Nigerians.

Economic and financial experts said unless the lingering dollar supply problem was abated, the volatility in the exchange rate and the consequent economic challenges might be endless.

“The challenge with the forex market is still the supply issue; price (exchange rate) is determined by the interplay of demand and supply,” a currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, had said.

According to the Managing Director, Cowry Asset Management Limited, Mr. Johnson Chukwu, the Federal Government needs to access an emergency lifeline of about $10bn from the International Monetary Fund to stabilise the exchange rate and restore investor confidence to the financial markets.

Economic and financial experts expect the naira to weaken further against the dollar as the Christmas holiday begins this week.

They also argued that the crackdown on the parallel market forex traders and the persistent scarcity of the greenback would make further weakening of the local currency inevitable.

The naira had, however, consistently closed around 305.5 a dollar at the official window since August.

A few weeks ago, the naira closed flat at 470 against the greenback over a period of over a week.

The naira had plunged to 470, down from 455 on the back of a fresh dollar shortage at the official and parallel forex markets.

Travelex and First Bank of Nigeria Limited commenced the sale of forex to Bureau De Change operators about two months ago after getting the Central Bank of Nigeria’s approval.

Some forex traders, however, said the scheme had failed to ease the biting dollar shortage in the country.

“What we get from Travelex is not sufficient,” one trader said, referring to the demand in the market.

The President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, said the sale of dollars to the BDC operators had yet to cut across the country.

This, he said, was partly responsible for the grueling dollar scarcity.

“There are still logistics problems in selling forex to all the BDC operators; this is what is causing this relative scarcity,” he said.

The CBN had asked the International Money Transfer Operators to sell dollars directly to the BDC operators to boost liquidity and narrow the gulf between the parallel and official market rates.

Dollar shortages have caused many companies to halt operations and lay off workers, compounding an economic crisis exacerbated by the fall in global prices of oil, which accounts for over 70 per cent of Nigeria’s budget revenue.

The CBN has struggled to support the naira as the country’s external reserves continue to fall.
http://punchng.com/naira-tumbles-490-dollar-shortage-continues/?utm_source=&utm_medium=twitter

E be like say e go reach 500 naira o

When Buhari got the position, Naira was around 220 to every dollar. Now it is almost 500.

Then he will tell you this is someone else fault and finish people will actually listen.

Seems we need to change our currency to dollar cos most market women I know complains of dollar morthan Naira nowadays.

So Naira is still tumbling. It seems it will soon begin staggering to finally collapse. Effect of hurry-hurry inconsistent financial policy.

Meanwhile it won't stop architect of our misfortune from visiting the other room.

I like the headline/topic. It tell us the cause of the tumbling Naira which clearly contradicts what anti-Buhari whailing zombies want us to believe.

fallout87:
When Buhari got the position, Naira was around 220 to every dollar. Now it is almost 500.

Then he will tell you this is someone else fault and finish people will actually listen.

Let's not edify stupidity here. The topic clearly link the fall of Naira to continual Dollar shortage here. Is Buhari your Dollar machine?

They blamed GEJ for everything, now it is catching up on them.


They said we are in recession, their daughters and son-in-law are spraying dollars.

They said we should endure, they are using N200m to cut grasses.

They promised us hope, we couldn't afford 3 square meal, their daughters are flying private jets


They said we are changing, everything is spoiling.


This country tire me walahi.

I pity our leaders...

thank God for those of us doing online business.

Nigeria will be great

Let's blame GEJ please..

BeeBeeOoh:
Let's blame GEJ please..

hmmmmnnnnnnnnnnnnnnnnnnnnn...

Buhari weldone n resort to blaming jonathan

Small time now, Emefiele go sey we are on top of the situation.


Buhari can you see the change you have brought to Nigeria?

When u make a foolish decision u will get a foolish result. This is the kind of result u get when u replace a PhD holder with a man whose highest level of education is a controversial ssce.we should stop complaining and enjoy the change we voted for

Nice development

If Elected, according to Buhari. .."I will make a Naira exchange equal to 1 dollar".

But the reality is that Bubu will make sure 1 dollar is exchanged for 500 Naira before December 31st.

Chai

I don't blame this Government, it is their incessant blind supporters that I blame. My neighbor is constantly supporting Buhari without basis, yesterday I told him to look for transport money from Buhari because I am tired of always giving him a ride to town. I can't carry your broke asz and Buhari be taking the glory for nothing.

Chai Nawao OOOOO which kynd government Be this abeg Buhari you done murdure Us finish


Zombies una see una life?

Waiting ah go chop dis mornin sef ah never know

Somewhere in Nnewi...this December.

Why don't we just peg this thing?

Buhari is the best thing to have ever happened to nigerians in diaspora.
Sai baba!

Hmm....This our naira must be very good in acrobatics for it to have repeatedly crashed, fell, and now it is tumbling against the dollar....

If you don't know what a useless government is/entails ask Buhari and his cabinent

JonSnow:
Buhari is the best thing to have ever happened to nigerians in diaspora.
Sai baba!

So if l send down $100 na almost N50k! Nigerians at home should seek out what should be earning them foreign currencies.

Zombie. How much dem de pay una sef. Hunger just finish una

Sibrah:
Let's not edify stupidity here. The topic clearly link the fall of Naira to continual Dollar shortage here. Is Buhari your Dollar machine?

OK