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Why The Naira Is Now Gaining Against The Dollar - Business - Nairaland

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Relationship Between Inflation And The Unending Devaluation Of The Naira / When The Naira Was Stronger Than US Dollar (Throwback) / ‘Anyone Caught Abusing The Naira Will Face Jail Terms’ – CBN Warns Nigerians (2) (3) (4)

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Why The Naira Is Now Gaining Against The Dollar by Mynd44: 2:42pm On Jun 18, 2021
The exchange rate between the naira and the dollar at the parallel market strengthened on Thursday, rising from N503/$1 to N485/$1. Initial checks by Nairametrics reveal the rebound of the naira from one of its lowest points in about 4 years held its support levels after the initial rise from N505/$1 to N497/$1 on Wednesday.

Sources inform Nairametrics that the trigger for the recent gains is related to chatter that the central bank may be gearing up to pump forex into the retail end of the market as part of its efforts to boost liquidity. Nairametrics reported recently that the CBN was going to sustain massive funding of Bureaux De Change (BDC) operators according to the President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Dr Aminu Gwadabe. He had told reporters last week that the CBN was “committed” to improving selling forex to over 5,000 operators.

Nairametrics understands this may have triggered a slow down of demand by speculators who fear they might be on the wrong side of the bargain should the CBN make good its promise. We are yet to get official confirmation if indeed, FX was sold during the week by the CBN to BDCs.

The ABCON Chairman has also chastised speculators, blaming them for the recent depreciation of the naira and accusing them of creating artificial scarcity in the market.

“The ABCON and CBN have observed with disdain the speculative behaviour currently beclouding the market with the misinformation that the CBN has adopted I&E window as its official rate. The above information is not true because as operators we still funded our accounts at our normal rates of N393/$ and not the I&E window rates for our operation this Friday.’’ Gwadabe.

BDC Operators also suggested earlier in the month that they were considering banning street trading of forex as a strategy for curbing FX speculation. They called it ‘Operation No Street Trading.’

“All operators are to collaborate in bringing down the forex rates in the market; street trading by BDCs should be discouraged/banned and ABCON will commence operation ‘no street trading ’. BDCs should improve return rendition to regulatory authorities; margin review to meet operational requirements; widening the scope of transactions; digitalization of BDC operations. ABCON to punish errant members; ABCON compliance officer and staff to commence nationwide supervision of BDC operations.” ABCON

Exchange rate
Dealers who spoke to Nairametrics on Thursday confirmed an exchange rate of N485/$1 if you wish to sell dollars and N492/$1 should you want to buy in the parallel market respectively. This also suggests without any empirical data that the sell pressure might be sustained in the short term.

In a major boost to the outlook of Nigeria’s forex supply, oil prices have remained above $70 per barrel with some analysts predicting it could rise past $80 and soar to $100 as the world gradually returns to full capacity. Nigeria relies heavily on oil for over 50% of its forex supplies.

A reliable source also informed Nairametrics that the CBN is considering closing the disparity between the official market and parallel market rates but prefers a rate that is stronger than the N485/$1 currently being traded. The CBN hopes to achieve this by injecting more forex into the market.

Despite the fall in forex prices on the black market, those sourcing for wire transfer forex still pay above N500/$1. A source informed Nairametrics that they purchased for about N505/$ on Thursday via wire transfers to a foreign currency denominated account.

The World Bank recently blamed CBN Policies for Nigeria’s forex woes calling on the apex bank to allow greater flexibility in the forex market so as to instil confidence in the market and open the floodgates for foreign investment into the country. The CBN recently adopted the NAFEX rate published by the FMDQOTC as its official reference price.
https://nairametrics.com/2021/06/18/why-the-naira-is-now-gaining-against-the-dollar/

7 Likes 1 Share

Re: Why The Naira Is Now Gaining Against The Dollar by kambili999(f): 2:44pm On Jun 18, 2021
Wait a sec. I'm the first to comment??

Yippie. grin grin grin

Well we hope things get better

33 Likes 2 Shares

Re: Why The Naira Is Now Gaining Against The Dollar by slawormiir: 2:44pm On Jun 18, 2021
Damnnn niggarrrr
Isoright
Make he gain small....
Make I check yuan......
Na yuan concern me
Only my real niggarrrrs know about the importance of yuan to da hood
Pussy asss niggarrrz stay far away
Thinktwicemybro:
Gain as how? 210 in 2015, 496 in 2021.
Gain indeed, Nigerians now buy fish for #1500.
As in ehnnnn....na only God go fit help us for this country....even self..he be like say God don tire for our matter....I shock today.....when I see fish way one of my baby sister buy for 800 naira....

I come ask her....how much come be benz or lexus car...na just small money you go add join the fish money....you go buy benz

172 Likes 8 Shares

Re: Why The Naira Is Now Gaining Against The Dollar by PAWG(m): 2:44pm On Jun 18, 2021
Bad news for crrypto investors

15 Likes

Re: Why The Naira Is Now Gaining Against The Dollar by emmykk(m): 2:44pm On Jun 18, 2021
Bitcoins users in nigeria will not like this news

5 Likes

Re: Why The Naira Is Now Gaining Against The Dollar by Thinktwicemybro: 2:44pm On Jun 18, 2021
Gain as how? 210 in 2015, 496 in 2021.
Gain indeed, Nigerians now buy fish for #1500.

256 Likes 18 Shares

Re: Why The Naira Is Now Gaining Against The Dollar by Legalcriminal: 2:44pm On Jun 18, 2021
Where is the gain ?

33 Likes 1 Share

Re: Why The Naira Is Now Gaining Against The Dollar by NotBeenPaid: 2:44pm On Jun 18, 2021





What's the point of writing these endless grammar when 1 Naira doesn't equal $1. Lubbish!





111 Likes 1 Share

Re: Why The Naira Is Now Gaining Against The Dollar by ObaOfEsan: 2:44pm On Jun 18, 2021
lipsrsealed
Re: Why The Naira Is Now Gaining Against The Dollar by Nobody: 2:44pm On Jun 18, 2021
bla Bla bla, mtcheew.

15 Likes

Re: Why The Naira Is Now Gaining Against The Dollar by WinterMinter(m): 2:45pm On Jun 18, 2021
Will it be equal to a dollar
If not,naira useless
Try RMB

10 Likes 2 Shares

Re: Why The Naira Is Now Gaining Against The Dollar by LaIabobo: 2:45pm On Jun 18, 2021
The CBN is struggling to meet forex demands of businesses.

Many large companies are still buying forex inflows at N515/USD and it'll continue to be this bad mainly because of our reduced foreign income and huge foreign loan repayment expenses.

We spend too much on importation and the country doesn't make that much forex anymore so there's pressure on the little dollars in circulation.

Same reason why CBN is luring our abroad brothers to send us dollars and they give us extra 5naira/USD incentive

58 Likes 7 Shares

Re: Why The Naira Is Now Gaining Against The Dollar by deeptechcool(m): 2:45pm On Jun 18, 2021
Aboki(padipadi)Economy

From 200 to 485, it's a massive gain indeed.

44 Likes

Re: Why The Naira Is Now Gaining Against The Dollar by OBAGADAFFI: 2:45pm On Jun 18, 2021
Always blaming speculators when you fail to do your job.

12 Likes 1 Share

Re: Why The Naira Is Now Gaining Against The Dollar by FacelessKing: 2:45pm On Jun 18, 2021
For those earning in USD, the weaker the naira the better.

No I’m not patriotic, thank you.

70 Likes 2 Shares

Re: Why The Naira Is Now Gaining Against The Dollar by TempUser: 2:45pm On Jun 18, 2021
grin
Re: Why The Naira Is Now Gaining Against The Dollar by Iruobean(m): 2:45pm On Jun 18, 2021
smiley
Re: Why The Naira Is Now Gaining Against The Dollar by OmoManU: 2:45pm On Jun 18, 2021
The Emefielenomics is not working it's part of what even failed the Buhari's govt, i don't know why he hasn't been sacked all the while

8 Likes 1 Share

Re: Why The Naira Is Now Gaining Against The Dollar by techstack: 2:46pm On Jun 18, 2021
How that I started earning on dollars
Re: Why The Naira Is Now Gaining Against The Dollar by BanevsJoker(m): 2:46pm On Jun 18, 2021
The naira is not gaining. Rather, the dollar is dropping. All thanks to Sleepy Joe's policies.

11 Likes

Re: Why The Naira Is Now Gaining Against The Dollar by money121(m): 2:46pm On Jun 18, 2021
Ok

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Re: Why The Naira Is Now Gaining Against The Dollar by Henrolla(m): 2:47pm On Jun 18, 2021
Doesn't even make much difference.

It's still not the change they promised us.
It was supposed to be one Naira to one dollar

Our leaders are not wise, and we're suffering for it

4 Likes 2 Shares

Re: Why The Naira Is Now Gaining Against The Dollar by Emmzi(m): 2:47pm On Jun 18, 2021
Y*mu
Re: Why The Naira Is Now Gaining Against The Dollar by iampeterben(m): 2:47pm On Jun 18, 2021
kambili999:
Wait a sec. I'm the first to comment??

Yippie. grin grin grin

Well we hope things get better



Yes oh!!!
Re: Why The Naira Is Now Gaining Against The Dollar by ACRI: 2:47pm On Jun 18, 2021
CBN!

Be very careful CBN
Re: Why The Naira Is Now Gaining Against The Dollar by EdoFirstBorn(m): 2:47pm On Jun 18, 2021
Smh
Nonsense currency
Re: Why The Naira Is Now Gaining Against The Dollar by erico2k2(m): 2:47pm On Jun 18, 2021
Re: Why The Naira Is Now Gaining Against The Dollar by saintTim(m): 2:47pm On Jun 18, 2021
Let's see what tomorrow brings
Re: Why The Naira Is Now Gaining Against The Dollar by Benards(m): 2:47pm On Jun 18, 2021
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How is it related to the topic

10 Likes 2 Shares

Re: Why The Naira Is Now Gaining Against The Dollar by berbs: 2:47pm On Jun 18, 2021
Na for where naira dey gain Gain N1 and lose N50 to N100 against the dollar. Una no well.

13 Likes

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