Estimated Reading Time:
The sharp depreciation of the naira in the parallel market triggered by the deregulation of petrol importation continued yesterday, with the naira depreciating to N370 per dollar.
The Petroleum Products Pricing Regulatory Agency, PPPRA on Wednesday said that, with the deregulation of petrol importation, importers will henceforth be permitted to source for their foreign exchange requirements from secondary sources.
“With the exchange rate going up, those who have dollars don’t want to sell, expecting the rate to rise further so as to maximise their returns.” says an operator.
Recall that the naira depreciated to N400 per dollar in February in the parallel market before retreating to N320 by the end of the month due to declining demand by importers.
According to President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, “The market has been stable all this while due to drastic reduction in import activities hence demand for dollars by importers reduced sharply. Those who had bought dollars when the rate was high and used it to import were having difficulty selling their goods, hence those who are still importing have reduced.
But the announcement yesterday has changed the whole thing.
More demand for dollars for petrol importation is expected in the market; meanwhile, there is no supply of dollar. Some people with dollar, especially those who bought when the exchange rate was high, feel the rate is too low for them to sell, hence they are withholding their dollars, waiting for the rate to go higher.”
The information contained in this post is for general information purposes only. The information is provided by Naira Suffers Free Fall, Now N370/$ and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
- US President-elect Joe Biden announces all-female senior press team
- 7 people have been killed as fresh violence erupts in Kaduna
- PDP Condemns the beheading of farmers in Zabarmari, Borno state by Boko Haram terrorists
- Here’s why Nigerians are to pay N4,000 monthly – Presidency
- Mai Mala Buni, Governor of Yobe, spends at least three days in his state
- Update: 110 civilians were killed by Boko Haram in the attack on a rice field in Borno State
- I’ve realized my mistakes: – Senator representing Borno, Ali Ndume, now knows the value of Ex-President Godluck Jonathan
- Breaking: Nigeria’s national electricity grid has collapsed
- Robbers attacked Ogun church, beat members to stupor, and kidnapped
- Northerners met in Kaduna to begin the search for Buhari’s successor