The naira slid to 405 against the United States dollar on the parallel market on Friday amid tight supply of the greenback.

This was despite a series of currency forwards sold by the Central Bank of Nigeria this week aimed at clearing demand for the US currency on the official market, traders said.

The local unit had dropped to 397/dollar on Thursday, after hovering between 390 and 395 earlier in the week.

Following series of CBN interventions in the interbank market and fresh dollar injections for invisible transactions, the naira had appreciated to 375/dollar.

Analysts have reacted to the latest rebound of the dollar, saying speculators might be responsible for the loss recorded by the naira.

“The Nigerian economy is an import-dependent one. It is a question of demand and supply and the issue here has to do with liquidity. However, we cannot rule out the activities of speculators in this regard,” a currency expert at Ecobank Nigeria, Mr. Kunle Ezun, said.

The CBN had on Thursday offered $100m in currency forwards to be settled within 60 days.

The central bank has been selling dollars to try to narrow the spread between the naira’s official and black market exchange rates.

On Wednesday, the CBN intervened in the Bureau de Change segment of the market, selling $10,000 to operators aside the $10,000 it sold to them on Tuesday.

The central bank had also on Monday injected $240m into the foreign exchange market.

Specifically, it released the sum of $90m to meet requests for invisibles such as business travel and personal travel allowances, medical and school fees, while the sum of $150m was also made available to authorised dealers in the interbank wholesale auction window on the same day.

Economic and financial analysts said the spate of interventions and dollar supply by the central bank would determine the direction of the naira in the coming weeks.

The naira closed at 306.2 to the dollar at the interbank market on Thursday, same level it closed the previous day.

http://investorsking.com/naira-slides-405-amid-tight-dollar-supply/

Does Nigeria have an unlimited supply of the dollar?
If the answer is no, then you'll understand that using our small foreign reserve to prop up the naira temporarily is an economic foolishness.
Good export base of products and services is the only way to boost any currency. Injecting dollar directly to prop up the naira is also another form of corruption, because those famed economists that work at the CBN know that's it useless.

But why is FG and the CBN always like this? Trying to use artificial, unsustainable measures to correct abnormalities caused by our status as a strictly consuming and import-dependent economy. Are they taking us for fools or what? Or are they just all totally dumb in that organization? Which way Nigeria?

The next news might be 'Naira tumbles to ***...'

There we go again.





Propaganda Nation.

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Buhari should just handover to Osunbande joooor

Naira is doing jangilova sliding front and back.

ok oh...what do u expect when Baba is back from UK...any reasonable Nigerian still hoping or believing in this man will have his own heart shattered... I no be PDP, I no be APC, I be Nigerian... but I won't give credit to someone who deserves it not...

I suspect BDC people and maybe bankers are up to something

Welcome back PMB.

Na like dis we go dey dey?

During my primary school days in Enugu, my favourite activity during break time was riding the swing in the playground. Us kids called it "Jangolover" We used to sing:


Ja, Ja, Jangolover;

Ye num Kobo

Ja, Ja, Jangolover;

Ye num Kobo

This Naira/exchange rate drama is quite akin to a Jangolover: uuuup today, doooooown tomorrow.

But this is not primary school anymore so I am wondering why the fu..ck Buhari and Emefiele are playing Jangolover with our currency and our economy.

In 2015 while I still worked at the Republic, we had to increase prices because the exchange rate went from N165 to N180 to the Dollar. Our head of logistics then, a staunch zombie or if you rather, Buharist, nearly brought the roof down with talk about how we would soon start enjoying 1Naira to one 1Dollar. I disagreed with him. I remember telling him:

"Past behaviour is the single best predictor of future behaviour"

He shouted me down with his histrionics. I think he voted Baba. In all his wisdom, he couldn't use his tongue to count his teeth. Heck, 20 million Nigerians couldn't use their tongue to count their teeth. Today, we drink from the polluted stream. Sad.

E go soon clear una for eyes.

But let buhari resign naaaaa, its crystal clear he's not up to this task, abi are the senate afraid to speak up again?

A man of god said he saw dollar at 615, i pray he's wrong or nigeria is toast.

When is buhari leaving??

Good news

The naira is moving up and down like Buhari

When we talk say na temporary solution people are ranting up and down that we are anti-Nigeria.
Be like say the thing don clear for una eyes.

#NigeriaWillBeGreatAgain

Ah....the sustainability issue.

The question is whether Nigerians and their government are willing to patiently develop the kind of economy that has a sustained inflow of dollars

They said there's steady weekly supply of dollars by CBN yet Naira is still falling. I don't understand. Can someone pls explain. The worst is that I sold my precious dollar saving at 387 weeks ago.

Where are the Voodoo economists.
Come and speak grammar as usual.
Useless mofos.

One step forward, ten steps backward

Mehn

dayus444:
But why is FG and the CBN always like this? Trying to use use artificial, unsustainable measures to correct abnormalities caused by our status as a strictly consuming and import-dependent economy. Are they taking us for fools or what? Or are they just all totally dumb in that organization? Which way Nigeria?

And

naijaking1:
Does Nigeria have an unlimited supply of the dollar?
If the answer is no, then you'll understand that using our small foreign reserve to prop up the naira temporarily is an economic foolishness.
Good export base of products and services is the only way to boost any currency. Injecting dollar directly to prop up the naira is also another form of corruption, because those famed economists that work at the CBN know that's it useless.

I disagree slightly with you guys. True the method CBN is applying won't last because using the foreign reserve to support the naira would only erode our already "almost eroded" foreign reserve. However if the government is sincere about it diversification drive, I think the current method makes sense on the short term.

My believe is the CBN is trying to use the artificial method on the short term till when the diversification drive of the government starts yielding results.

Agriculture for instance won't yield results immediately. It takes some time and some doing.

We said it times without number that the cash intervention by CBN was a school boy ad temporum practise, something we're experts at in Nigeria - firebrigade.
We need to deepen our export content, something this administration has failed to do in two years despite all the noise they made.
First they blamed PDP, then Boko Haram, then ND militants. Maybe they would blame Saraki this time.

It's an indication that Short term measures doesn't work..

i know all what they were doing was just try and error. i fear for the future of this so called country.

Abudu2000:
But let buhari resign naaaaa, its crystal clear he's not up to this task, abi are the senate afraid to speak up again?

A man of god said he saw dollar at 615, i pray he's wrong or nigeria is toast.

It isn't about bubu resigning, but whether the govt is ready to make the hard choices needed to develop a manufacturing based economy, which is what would take us to a strong currency