Naira rose to N361 to the dollar on Tuesday in the parallel market compared to the N357 price achieved on Monday. The naira has been depreciating in recent weeks as the CBN continues to leave Nigerians in the dark about what its planned forex policy will look like.
According to an article on Reuters, the rise in the price of the dollar is mainly attributed to “customers trying to hedge against a likely currency depreciation when the central bank clarifies it new forex policy. The speculators have basically snapped up every available dollar from retail outlets, the article confirms,
“Dollar demand has increased due to uncertainty around central bank’s FX policy,” said Aminu Gwadabe, head of Nigeria’s bureaux de change association. Most firms and individuals that normally sell dollars to retail currency dealers are holding on to cash, Gwadabe.
Back in March when the Naira witnessed a similar consistent drop in price, the Naira depreciated to as low as N405 before beginning a massive reversal that brought it down to as low as N310 to the dollar. Analysts expect the CBN to reveal details of its new policy sometime this week.
I WONDER WHY THESE CURRENCY SPECULATORS’ ACTIVITIES SHOULD NOT BE CURTAILED! THEY ARE EMBARRASSMENT TO THE DEVELOPING WORLD! THE FEDERAL GOVERNMENT SHOULD COME OUT WITH A NEW DIRECTIVE, AS SOON AS POSSIBLE, TO DERAIL THE ACTIVITIES OF THESE SPECULATORS. I AM OPTIMISTIC, MOST OF THEM (THE GREEDY ONES) WOULD BE DISAPPOINTED WHEN THE CENTRAL BANK OF NIGERIA COMES OUT WITH A FEASIBLE PLAN THAT WOULD BE ACCEPTABLE TO THE MASSES. UNDER NORMAL CONDITION, HOW ON EARTH WOULD A U.S. DOLLAR EXCHANGE FOR OVER THREE DOLLARS! IT IS CRAZY AND SUSPICIOUS. THE CBN AND THE PMB ADMINISTRATION MUST NOT ALLOW THESE EVIL SPECULATORS TO RUIN OUR ECONOMY THE BUREUAX DE CHARGE MUST WORK CLOSELY WITH THE CBN IN ORDER TO REACH A REALISTIC EXCHANGE RATE ELSE, THE COUNTRY WILL BE HEADING FOR RECESSION WHICH IS WHAT OUR ENEMIES ARE WORKING TOWARD. THE NEED TO INTENSIFY THE — USE OF OUR LOCALLY MADE GOODS IS VERY MANDATORY ALONG WITH THE UTILIZATION OF OUR LOCAL RAW MATERIALS. UNNECESSARY FOREIGN TRIPS BY OUR GOVERNMENT OFFICIALS SHOULD BE DRASTICALLY REDUCED IN ORDER TO SAVE FOREX. LET NIGERIANS SHUN EXPENSIVE AND LUXURIOUS LIFE STYLE LIVING AND LEARN TO COPE WITH THE CURRENT ECONOMIC REALITY OF THE PERIOD.