Naira drops at parallel market as forex scarcity persist

May 26, 2020
64 Views

The Naira depreciated on Tuesday at the parallel segment of the foreign exchange market against the U.S (United States.) dollar selling at N462 to $1 compared to N460 against the dollar on Monday.

Victor Silas, an Investment analyst explained that the downward pressure seems to persist at the black market due to the limited forex supply at the I & E window. He said,

“With the prolonged limited FX supply to the market, investors and corporates unable to get dollars at the I & E windows will result in the parallel market. As more shortage of FX supply is prolonged and unable to meet demands.

“Rates in the parallel market will remain under pressure and we might see it above the N460 /$ levels it is currently trading at.

At this point, Nigeria’s central bank needs to restore confidence and provide more FX for legitimate transactions.”

However, Aminu Gwadabe, president, Bureau De Change Operators of Nigeria (ABCON (Association of Bureau De Change of Nigeria)) explained recently that Bureau De change operators will resume fully as soon as restrictions placed on air travels and international airports are lifted.

He said the return of the operators will help stabilize the naira and reduce the impact of currency hoarders and speculators.

“I, therefore, want our members and the General public not to engage on panic buying as anytime soon fingers might be burnt from such behaviours,” he said.

You may be interested

Expert reveals how you can improve your baby’s brilliance in first 1000 days
Health
Health

Expert reveals how you can improve your baby’s brilliance in first 1000 days

Webby - January 29, 2022

Spread the loveA Kaduna-based nutritionist, Mrs Jane Gwani, says proper nutrition in the first 1,000 days of life is key…

Tinubu Denies Travelling For Medical Treatment In UK, Says He Went For Meeting Abroad
News
News

Tinubu Denies Travelling For Medical Treatment In UK, Says He Went For Meeting Abroad

Webby - January 29, 2022

The National Leader of the All Progressives Congress (APC), Bola Tinubu has denied reports that he traveled to seek medical…

$20m Suit: Chris Brown Speaks Amid R*pe Allegations
News
5 views
News
5 views

$20m Suit: Chris Brown Speaks Amid R*pe Allegations

Webby - January 29, 2022

 Chris Brown, the popular American singer, has spoken out amid rape allegations levelled against him, as revealed by court documents…

Leave a Comment

Your email address will not be published.