Naira falling against USDollar again, hits N352 -USD1
– The Naira is continuing to dive against
the US Dollar.
– Parallel market traders are now selling
at N352 – USD1.
– A decline in cement company shares
has affected the naira value by almost 2
percent
– President Buhari continues to
maintain that he will not devalue the
currency.
The Nigerian naira has continued its
unprecedented freefall in value against the
US Dollar.
Our national currency is now valued at
N352 to USD1 on the parallel market,
falling in value from N347 to the dollar
yesterday.
While some market operators did sell
at N352 – USD1 yesterday, the market rate
appears to have been in flux between N347
– N352.
Our currency was trading within a range of
352 and 360 a dollar on the parallel market
on Wednesday, February 17, down to a new
record low from a range 347 to 352 on
Tuesday due to persistent dollar shortages
amid control by the central bank.
As of today, the naira fell almost two
percent, it was hit by a major decline in
cement companies' shares, including
Dangote Cement, which accounts for the
third of local bourse capitalisation.
The local bourse index dropped 1.81
percent to 24,070 points at 1221 GMT as
investors took profits from previous gains
on the stocks.
An unnamed stock broker said: "Due to the
rapid decline of the naira's value, some
offshore investors are booking profit and
selling down their holdings."
Dangote cement shares fell 4.11 percent,
Ashaka cement was down 4 percent while
Cement Company of Northern Nigeria
dropped 8.89 percent to drag the index
down.
The stock index, which has the second-
biggest weighting after Kuwait on the MSCI
frontier market index, has declined by
around 14.41 percent since January
According to Reuters, concerns over the
naira's depreciation and the unwillingness
to adjust its exchange rate is a great factor
contributing to the decline.Foreign exchange dealers have said that the
increasing pressure on the Naira is caused
by high demand for the dollar by importers
and speculators.
The Central Bank of Nigeria remains
doggedly determined to maintain its policy
of pegging the Naira to N197 – USD1.
Market analysts and CEO of Economic
Associates Dr. Ayo Teriba, said the Nigerian
economy should not have been allowed to
deteriorate to its current point.
"This is 2016 and not 1986, 1992 or 1995;
the conditions are not the same. The global
environment has liquidity now that Nigeria
can attract," he said.
"The situation is not like 1986 when the
global environment was tight."
Despite the economic turmoil caused by
the Naira's slump in value, President
Muhammadu Buhari has reiterated that he
will not consider devaluing the national
currency.
The president believes that devaluing the
Naira will only cause disaster for Nigeria's
poorest people and will in fact increase
inflation.
the US Dollar.
– Parallel market traders are now selling
at N352 – USD1.
– A decline in cement company shares
has affected the naira value by almost 2
percent
– President Buhari continues to
maintain that he will not devalue the
currency.
The Nigerian naira has continued its
unprecedented freefall in value against the
US Dollar.
Our national currency is now valued at
N352 to USD1 on the parallel market,
falling in value from N347 to the dollar
yesterday.
While some market operators did sell
at N352 – USD1 yesterday, the market rate
appears to have been in flux between N347
– N352.
Our currency was trading within a range of
352 and 360 a dollar on the parallel market
on Wednesday, February 17, down to a new
record low from a range 347 to 352 on
Tuesday due to persistent dollar shortages
amid control by the central bank.
As of today, the naira fell almost two
percent, it was hit by a major decline in
cement companies' shares, including
Dangote Cement, which accounts for the
third of local bourse capitalisation.
The local bourse index dropped 1.81
percent to 24,070 points at 1221 GMT as
investors took profits from previous gains
on the stocks.
An unnamed stock broker said: "Due to the
rapid decline of the naira's value, some
offshore investors are booking profit and
selling down their holdings."
Dangote cement shares fell 4.11 percent,
Ashaka cement was down 4 percent while
Cement Company of Northern Nigeria
dropped 8.89 percent to drag the index
down.
The stock index, which has the second-
biggest weighting after Kuwait on the MSCI
frontier market index, has declined by
around 14.41 percent since January
According to Reuters, concerns over the
naira's depreciation and the unwillingness
to adjust its exchange rate is a great factor
contributing to the decline.Foreign exchange dealers have said that the
increasing pressure on the Naira is caused
by high demand for the dollar by importers
and speculators.
The Central Bank of Nigeria remains
doggedly determined to maintain its policy
of pegging the Naira to N197 – USD1.
Market analysts and CEO of Economic
Associates Dr. Ayo Teriba, said the Nigerian
economy should not have been allowed to
deteriorate to its current point.
"This is 2016 and not 1986, 1992 or 1995;
the conditions are not the same. The global
environment has liquidity now that Nigeria
can attract," he said.
"The situation is not like 1986 when the
global environment was tight."
Despite the economic turmoil caused by
the Naira's slump in value, President
Muhammadu Buhari has reiterated that he
will not consider devaluing the national
currency.
The president believes that devaluing the
Naira will only cause disaster for Nigeria's
poorest people and will in fact increase
inflation.
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