Naira in another record slump as CBN moves to replace naira notes
The naira depreciated significantly against the US dollar in official and unofficial markets on Friday. This is less than 48 hours after the Central Bank of Nigeria announced the replacement of naira banknotes.
Official market rates published on the websites of the FMDQ, where forex is officially traded, showed the naira closed at 444.75 naira to the dollar on Friday, the lowest rate it has ever seen traded on the segment.
This represents a devaluation of 0.06% from the previous market value, with $61.89 million recorded as turnover in the forex market during this period.
>In the unsanctioned street market across Nigeria's states, the greenback's gallop against the dollar continues.
The dollar fell to 780.00 Naira to $1 on Friday from 778 Naira. 00, it traded on Thursday and sold for N$783.00, forex traders in Abuja said.
Analysts say the apex bank's decision is the reason for the further devaluation of the naira on the black market, as holders of illicit funds attempt to convert cash hoarded outside banks into dollars. which pushes up the exchange rate even further.
“The rush to get rid of banknotes that are outside the banking system before the deadline is what is likely causing renewed pressure on the exchange rate,” said Damilare Ojo, team leader, Investment Research at Meristem Securities Limited.< /p>
He said the demand for dollars will continue to increase in the short term and this will put further pressure on the parallel market rate.
“So in the short or short term, I expect more pressure on the value of the naira on the black market,” he added.
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The naira depreciated significantly against the US dollar in official and unofficial markets on Friday. This is less than 48 hours after the Central Bank of Nigeria announced the replacement of naira banknotes.
Official market rates published on the websites of the FMDQ, where forex is officially traded, showed the naira closed at 444.75 naira to the dollar on Friday, the lowest rate it has ever seen traded on the segment.
This represents a devaluation of 0.06% from the previous market value, with $61.89 million recorded as turnover in the forex market during this period.
>In the unsanctioned street market across Nigeria's states, the greenback's gallop against the dollar continues.
The dollar fell to 780.00 Naira to $1 on Friday from 778 Naira. 00, it traded on Thursday and sold for N$783.00, forex traders in Abuja said.
Analysts say the apex bank's decision is the reason for the further devaluation of the naira on the black market, as holders of illicit funds attempt to convert cash hoarded outside banks into dollars. which pushes up the exchange rate even further.
“The rush to get rid of banknotes that are outside the banking system before the deadline is what is likely causing renewed pressure on the exchange rate,” said Damilare Ojo, team leader, Investment Research at Meristem Securities Limited.< /p>
He said the demand for dollars will continue to increase in the short term and this will put further pressure on the parallel market rate.
“So in the short or short term, I expect more pressure on the value of the naira on the black market,” he added.
Support the integrity and credibility journalism of PREMIUM TIMES
Good journalism costs a lot of money. Yet only good journalism can guarantee the possibility of a good society, an accountable democracy and a transparent government.
For free and continued access to the best investigative journalism in the country, we ask that you consider providing modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you help sustain relevant journalism and keep it free and accessible to everyone.
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[embedded content]TEXT ANNOUNCEMENT: Call Willie - +2348098788999
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