₦airaland Forum

The sharp depreciation of the naira in the parallel market triggered by the deregulation of petrol importation continued yesterday, with the naira depreciating to N370 per dollar. The Petroleum Products Pricing Regulatory Agency, PPPRA on Wednesday said that, with the deregulation of petrol importation, importers will henceforth be permitted to source for their foreign exchange requirements from secondary sources.

This triggered speculation and increased demand for the dollars in the parallel market on Thursday, halting the two-month exchange ratestability in the market. On Thursday the naira lost N7 naira to the dollar, as the exchange rate rose sharply to N334 per dollar from N320per dollar.

This persisted yesterday with the parallel market exchange rate rising to N370 per dollar,indicating N50 depreciation of the naira in two days. Saturday Vanguard investigation revealed that the sharp depreciation was driven by two factors, increased demand for dollars and hoarding in anticipation of further depreciation of the naira.

According to a BDC operator who spoke to Saturday Vanguard on condition of anonymity, “With the exchange rate going up, those who have dollars don’t want to sell, expecting the rate to rise further so as to maximise their returns.” Recall that the naira depreciated to N400 per dollar in February in the parallel market before retreating to N320 by the end of the month due to declining demand by importers.

According to President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, “The market has been stable all this while due to drastic reduction in import activities hence demand for dollars by importers reduced sharply.

Those who had bought dollars when the rate was high and used it to import were having difficulty selling their goods, hence those who are still importing have reduced. But the announcement yesterday has changed the whole thing.

More demand for dollars for petrol importation is expected in the market; meanwhile, there is no supply of dollar. Some people with dollar, especially those who bought when the exchange rate was high, feel the rate is too low for them to sell, hence they are withholding their dollars, waiting for the rate to go higher.”

Benikuuse:
Hmm this thing is getting to a stage where we have to buy biscuit for 50 naira

989900:
Where is Pat Utomi, Oby, Sanusi, and all of them now?

Whet the country with imported fuel they said . . .

At what cost?

The Naira is on a free fall as it is.

And by the time salaries are increased and budget monies released, and oil prices . . . it's just going to be anarchy!

So much for cosmetic fixes.

There are somethings you can't just 'short cut'.

Pedrop:
meanwhile, conspiracy in Nigeria had Northerners taking up all oil wells while there partner in crime from west occupy all administrative positions in oil companies at the detriment of the owners, while at the same time using Ibadan Lagos propaganda houses to tell minorities in South that Igbos( whom have their own oil and other resources in their lands ) are after their oil. Thank God for social media and recent events in NigerDelta. God is alive and always there for Igbos.

oduastates:
Buhari fall my hand on this devaluation thing.

I was hoping that he would maintain his stance.[/b]

omowolewa:
Now we need to think inwards.

Pls pay attention!
A Zombie wants to make a point

Pedrop:
meanwhile, conspiracy in Nigeria had Northerners taking up all oil wells while there partner in crime from west occupy all administrative positions in oil companies at the detriment of the owners, while at the same time using Ibadan Lagos propaganda houses to tell minorities in South that Igbos( whom have their own oil and other resources in their lands ) are after their oil. Thank God for social media and recent events in NigerDelta. God is alive and always there for Igbos.

Almajiri1:
The medieval one has finished this country.Who or what entity will rescue this nation before 2019?

Trailblazer1:

Rose2014:
See what the so called sophisticated tribe has imposed on Nigerians just because they hated GEJ

Almajiri1:
There are genuine omoluabi's who never supported GEJ based purely on principles and are today withdrawing their support from Buhari based on perceptible reality.

Its so unfortunate that the acclaimed 'sophisticated' ones are in the majority and majority will always have their ways regardless of how foolish they are.

Tinubu and his co rogues cloud your mind to class all my Yoruba people as same.

Rose2014:
I sighteth Candyrain

dear pls wake me when naira hits N2000

Candyrain:
Hahahahaha... my dear u don't need to sleep becos it'll hit dat figure before u could even close ur eyes.

How are u love?