• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Markets Currencies

Volatile Dollar Price: Here Is What My ‘Aboki’ Told Me To Do

Nairametrics by Nairametrics
February 25, 2016
in Currencies
Non-oil exporters lose N78bn to forex policy
Share on FacebookShare on TwitterShare on Linkedin

On Wednesday, the price of the dollar dropped to as low as N270. Ok scratch that, it dropped to as low as N290. No scratch that too, it dropped to as low as N310. I am confused!

I bet you are confused too! Don’t worry even parallel market operators are confused! No one knows the true price of the dollar and this is even causing a lot more panic for buyers and sellers. Analysts speculate a lot of the demand and supply currently available are phantom and does not represent reality. What you see are people quoting prices over the phone with no underlying transaction to achieve a realistic price. For transactions that have been consummated, some believe it is for and against the buyer depending on information asymmetry.

My Aboki, Buzu seemed to agree too. He tells me a lot of the guys quoting prices don’t actually have the dollars and that the current situation pose a disturbing trend to him and his fellow traders. “This market taya me, me sef don taya. Na only CBN fit save am”. Interpreted as I am tired of the market and it is only the CBN that can save it.

RelatedStories

Sterling Bank concludes core application migration, leads the way for African Banking

Sterling Bank to raise $400 million via debt and equity instruments to strengthen growth capacity and balance sheet 

July 15, 2025
Doctors

South-West doctors threaten strike over unfavorable allowances, issue 21-day ultimatum to FG

July 15, 2025

So I asked him how much he thought the dollar was at his own end and he says with the faintest assurance that it is N360. Even he wasn’t so sure. I asked him if I should buy now and he says “Ugo make you no buy oh”. Ugo do not buy. He explains that the price will likely crash further to under N300 as there are a lot of speculators who are still holding on to dollars.

Surely his advice came without an empirical reason and could probably be just be a “guestimate”. As a consolation, even hardcore economist could not predict the sharp fall of the price of the dollar this week. No one seems to know to what direction we are headed. Economic fundamentals of lower oil prices still remains, external reserves are low and CBN still has billions of dollars in unmet demand. So maybe the price could depreciate further

On a flipside, the economy is faltering and people have lost jobs. Aggregate demand for goods and services are expected to fall as purchasing power has been eroded. It will therefore be foolhardy for importers to continue to import at the same volumes. Even if imports are not down despite falling aggregate demand, the fact that the naira has depreciated by over N100 in the past few weeks means some importers can no longer afford to import as much as they used to. The only demand that might not go away so soon is probably coming from salary earners who are speculating or those looking to stash up dollars for their personal use.

Volatility presents a superb opportunity to make super profits and those who are good at it may carry on. If you are like me who can’t play this FX volatility game, then be best to stick to Buzu’s advice. He promised to tell me when to buy again.

Nairametrics

Nairametrics

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

Related Posts

Sterling Bank concludes core application migration, leads the way for African Banking
Company News

Sterling Bank to raise $400 million via debt and equity instruments to strengthen growth capacity and balance sheet 

July 15, 2025
Doctors
Health

South-West doctors threaten strike over unfavorable allowances, issue 21-day ultimatum to FG

July 15, 2025
Small Business
Business News

15 things you don’t need to start a business in Nigeria 

July 15, 2025
NNPC, Akwa Ibom, GACN sign $3.5 billion gas agreement
Corporate deals

NNPC, Akwa Ibom, GACN sign $3.5 billion gas agreement

July 15, 2025
Key policies that shaped Nigeria’s tech industry under Buhari’s 8-year rule 
Spotlight

Key policies that shaped Nigeria’s tech industry under Buhari’s 8-year rule 

July 15, 2025
Investments
Financial Literacy

Investing in a volatile world: Strategies for Gen Zs, millennials, and retirees

July 15, 2025
Next Post
Markets roundup (Feb 25): Stocks Rally, Naira in ‘Dead Cat Bounce’

Markets roundup (Feb 25): Stocks Rally, Naira in 'Dead Cat Bounce'

Comments 1

  1. Aboki Fx says:
    December 30, 2016 at 7:43 am

    Nice share

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • Sterling Bank to raise $400 million via debt and equity instruments to strengthen growth capacity and balance sheet 
  • South-West doctors threaten strike over unfavorable allowances, issue 21-day ultimatum to FG
  • 15 things you don’t need to start a business in Nigeria 

Follow us on social media:

Recent News

Sterling Bank concludes core application migration, leads the way for African Banking

Sterling Bank to raise $400 million via debt and equity instruments to strengthen growth capacity and balance sheet 

July 15, 2025
Doctors

South-West doctors threaten strike over unfavorable allowances, issue 21-day ultimatum to FG

July 15, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics