BREAKING: Speculators React As Naira Crashes Again (SEE LATEST EXCHANGE RATE)

BREAKING: Speculators React As Naira Crashes Again (SEE LATEST EXCHANGE RATE)

On Monday, the naira experienced a sharp drop against the dollar, averaging at 1,030/$ in the parallel market.

Read Also Tenant Caught In Bed With Landlord’s Daughter (VIDEO)

This marks an N80 loss, equivalent to an 8.42% decrease in the value of the local currency compared to its closing rate of N950/$ the previous Friday.

Read Also Students Organise S3x Party Inside Hostel (VIDEO)

This decline is noteworthy as it is the first time the naira has weakened since the Central Bank of Nigeria initiated the clearing of some of its FX backlog last week.

Read Also Actress Ekene Umenwa’s Husband Takes Action On Her After She Knelt For Musician Moses Bliss On Wedding Day

Bureaux De Change operators, also known as currency traders, reported trading the naira at rates ranging from N990 to N1,030/$.

One trader named Awolu stated, “The dollar is N995 if you wish to sell. If you are looking to buy from me, it is N1,020.” Another trader, Kadri, added, “The dollar is N960 if you want to sell. If you want to buy, it is N990.”

Aminu Gwadabe, the President of the Association of Bureaux De Change Operators of Nigeria, explained that the dollar has strengthened against the naira because individuals who purchased it at higher prices are now resisting its depreciation in light of the Central Bank of Nigeria’s recent action.

The apex bank recently initiated the settlement of overdue matured FX forwards owed to various banks, aiming to enhance liquidity in the foreign exchange market after weeks of the naira reaching record lows. According to Finance Minister Wale Edun, the outstanding forward payments amounted to approximately $6.7 billion.

This move promptly led to the appreciation of the naira, with the currency gaining about N220 after closing at N950/$ in the parallel market the previous week. However, it appears that the naira has now lost this momentum. Confirming the closing price of the dollar, Gwadabe noted, “In the afternoon, it was N1,015 and N1,020/$. It closed at N1,030/$.”

He emphasized, “Speculators are always evaluating sustainability factors. When they perceive that the injection is not ongoing, they react. This is the market’s reaction we are witnessing. Additionally, there is resistance. There are individuals who bought at a higher price, and this situation does not favor them. They are not willing to incur further losses.

“The only way we can maintain this rate is by continuously instilling confidence in the market. Assure the market that another avenue is opening up, and bolster liquidity. The parallel market is where the retail sector operates. Currently, there is no information on how liquidity will flow into that sector. All we know is that BDCs will be included to bolster the official foreign exchange market. We cannot afford to wait in the FX market.”

Furthermore, at the official market, the naira saw a 3.6% decline, closing at N809.02 to the dollar on Monday, down from N780.23/$ on Friday according to data from FMDQ OTC Securities Exchange.

Never Miss Any News, Join Our WhatsApp Group With This Link Below

https://chat.whatsapp.com/FT0jj4WaAbcCNLfokOU6tD