Tag
DOLLAR
CBN has been rationing forex to protect the naira amid the fall in crude oil prices and deadly COVID-19 that has reduced the country's foreign earnings.
The continuous rally of the local currency against the dollar can be attributed to the improved liquidity in the foreign exchange market due to the intervention of the Central Bank of Nigeria (CBN), as well as the decline in the activities of currency speculators.
Naira has depreciated against the US dollar, as it dropped from N455/$1 to N460/$1 on Thursday afternoon.
Rates in the parallel market will remain under pressure and we might see it above the N460 /$ levels it is currently trading at.
The U.S dollar index that tracks the American dollar against a basket of other major currencies was down 0.67% to 99.22 by 12 noon Nigerian time on Tuesday.
It should be noted that Nigeria’s external reserves went on a downward slide last year, having lost $11.75 billion within a space of 10 months.
CBN's Godwin Emefiele had recently advised businesses and individuals to stop patronizing operators in the parallel market because they heating up the foreign exchange market.
All eyes are now set on silver as its prices started with huge follow-through buying after a convincing breakout this week.
Naira it dropped against the dollar today it was selling at N456 to S1 as individuals rush in to meet their fx payment obligations
The U.S. Dollar Index that tracks the American dollar against a basket of other major currencies dropped 0.10% to trade at 100.338
The local currency strengthened by N0.58 against the dollar, compared to the N386.58 to a dollar that it traded on Thursday.
Manufacturers have confirmed dollar scarcity is real and no one knows when this will end.