👉 Relocate to Canada Today!

Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to Canada


Naira falls after a one-week gain in the parallel market

The naira fell against the dollar on Monday after gaining 26.24 percent in the parallel market the previous week.

According to the report on BusinessDay.ng, the local currency lost 8.24 percent of its value after trading, with the dollar quoted at an average of N768.33/$, compared to N705/$ on Friday’s black market.

👉 Relocate to Canada Today!

Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to Canada

According to traders, the naira’s depreciation was caused by a dollar shortage amid rising demand. In Lagos, the dollar was trading between N750 and N770 per dollar, up from N700 to N710 on Friday’s black market. JAMB Result

The naira was trading at 760-775 per dollar in Abuja and Kano, up from 700-710 last week, BusinessDay.ng reports.

Don’t Miss!

“Low inflows of foreign investments into the economy in the face of a challenging business environment will trigger further depreciation in the exchange rate due to pressure on the local currency and raises concerns for the central bank,” analysts at Cowry Asset Management Limited said.

Nigeria’s gross external reserves, which provide the Central Bank of Nigeria (CBN) with the means to defend the naira, fell 8.07 percent, or $3.27 billion, over the course of ten months, to $37.25 billion at the start of November, down from $40.52 billion at the start of the year.

Analysts attribute the decline to a decrease in petrodollar inflows into Nigeria’s economy, despite a rally in crude oil prices due to an increase in oil demand since Russia’s invasion of Ukraine in February 2022.

“Despite several initiatives by the Central Bank of Nigeria such as the RT200 programme, the increase in interest rates, clamping down on Bureau De Change, and FX repatriation policies, the Naira vis-à-vis the Dollar keeps depreciating,” analysts at FSDH said in a new report. Dollar to Naira Today

According to the report, the recent policy of issuing new naira notes has exacerbated the currency’s depreciation. While the underlying issue with Nigeria’s exchange rate is a lack of foreign exchange inflows, “we believe that policies by the apex are important tools that influence the movement of the naira.”

👉 Relocate to Canada Today!

Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to Canada

The CBN recently announced plans to replace the current N200, N500, and N1,000 notes with new banknotes beginning December 15, 2022.

The naira gained 0.08 percent at the Investors and Exporters (I&E) forex window on Friday, with the dollar quoted at N445.75 versus the previous close of N446.10 on Thursday, according to FMDQ data.

At the I&E window, the naira has fallen by more than 5% this year, to N446.10/USD as of November 10, 2022, from N422.67/USD at the start of the year. In the same vein, Nigeria’s gross official reserves fell by around $866 million in October to $37.37 billion.

Following the difficulties in those markets with FX supply, the CBN has always maintained a culture of intervening in the various foreign exchange markets such as the I&E and Secondary Market Intervention Sales windows.

Check JAMB Result

Check: Dollar to Naira Today


Immigrate to Canada Via Job Offer!

Get latest Jobs in Canada for foreigners with visa sponsorship 2023 and how to apply. Don't miss this opportunity that can help you relocate to Canada with your family.


Click here to Subscribe

Copyright Warning!

Contents on this website may not be republished, reproduced, or redistributed either in whole or in part without due permission or acknowledgment. . Proper acknowledgment includes, but not limited to (a) LINK BACK TO THE ARTICLE in the case of re-publication on online media, (b) Proper referencing in the case of usage in research, magazine, brochure, or academic purposes,. . All contents are protected by the Digital Millennium Copyright Act 1996 (DMCA). .
The images, except where otherwise indicated, are taken directly from the web, if some images were inserted by mistake violating the copyright, please contact the administrator for immediate removal.
. We publish all content with good intentions. If you own this content & believe your copyright was violated or infringed, please contact us  for immediate removal.

Emediong Silver

Emediong Ekpe is a graduate of English. A professional Sports journalist/analyst, and a spoken word artist. He is passionate about decimating information and putting smiles on people's faces via news writing.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button

It looks like you're using an ad blocker!

This website InfoGuideNigeria.com is maintained by the advertising revenue and we noticed you have ad-blocking enabled. Please disable Ad-Blocker