₦airaland Forum

How do we cushion the effects? Will it keep rising?

Please economists in the house, explain.

Look at Aboki Forex

This one is fake.

Not unexpected.

Our main source of forex is crude oil and the present state of the industry is known.

But in view of this pandemic, the volume of international transactions must have dropped very sharply. So I don't understand the rise of the dollar against local currency.

Iamgrey5:
Look at Aboki Forex

This one is fake.

Use parallel rates and not BDC rates of you want to buy or sell.

VaselineCrew:
How do we cushion the effects? Will it keep rising?

Please economists in the house, explain.

Now that breeze has opened fowl nyash and dollar has more than doubled what it was prior to 2015, I just wonder what Apc will use to campaign next time

Worse still, Going by how this govt is going, by 2023, wahala go dey for naira.

IamR:
Use parallel rates and not BDC rates of you want to buy or sell.

Aren't you going to buy from BDC at the end of the day ?

It's already N450 to $1 in the parallel market where most Nigerians are capable of accessing dollars. In the forward market, contracts for the future, it's N500:

The volatility of Nigeria’s foreign exchange market seems to be heading towards the 2015 crisis era as the naira has further depreciated to N450 to a dollar in the parallel market on Friday, April 24, 2020.

According to Aboki fx, this represents a 4.6% depreciation when compared to N430 to a dollar that it sold the previous day.

The liquidity crisis in the foreign exchange market seems to be getting worse as the price at which the dealers buy the dollar has moved from N412 to a dollar to N428 to a dollar within the last 3 days.

https://nairametrics.com/2020/04/24/naira-crashes-to-n450-to-a-dollar-amid-fx-scarcity/

The naira also weakened on the forward market. One-year dollar/naira non-deliverable forwards stood at 498.5 points, weakening from Monday's close of 492.4, Refinitiv data showed.

https://www.reuters.com/article/nigeria-currency-idUSL5N2C90OM

PS: The first cited article is 3 days after the second.

Iamgrey5:
Aren't you going to buy from BDC at the end of the day ?

BDC will use parallel market rates and not BDC rates.

IamR:
BDC will use parallel market rates and not BDC rates.

BDC would use BDC rates sir

Iamgrey5:
BDC would use BDC rates sir

OK. Call any BDC that you want to buy or sell you will know what I am talking about. I sell and I buy $.

BDC rates = price BDCs get it from CBN before it was stopped.

Is it safe to by dollar or invest in it