Estimated Reading Time: 1
Amid a rise in demand for the dollar, the naira weakened further on Monday, trading at 475 to the United States dollar in the parallel market
The Naira, which has come under pressure in recent days, fell to 470 per dollar on Friday from 468 on Thursday. It was trading at 462-463 at the unofficial market at the start of this month.
In the Investors’ and Exporters’ forex window, the naira closed at 386 to a dollar on Monday, compared to 385.50 at which it opened, according to data from FMDQ Group.
The CBN has kept the official exchange rate at N379/$1 since August, when the naira was devalued for the second time this year from 360 per dollar. It was first devalued to 360 in March from 306.
The Group Managing Director/Chief Executive Officer, Cowry Asset Management Limited told journalists that “All the major sources of foreign exchange inflow to support the country’s forex reserves have declined,”
The forex reserves fell to $35.60bn as of November 13, 2020 from $35.69bn on October 28, the latest data from the Central Bank of Nigeria showed.
Johnson said while there had been some recovery in the price of crude oil, the decline in oil production caused by the OPEC cut deal meant that proceeds from crude sales had dropped.
The financial expert also said foreign portfolio investment in the country had plummeted, adding that diaspora remittances had also declined significantly.
“There is a lot of unmet demand for dollars,” Johnson said, adding that pressure was mounting even as the CBN continued to intervene in the market.
According to him, demand pressures were coming end-users and those whose obligations had matured and in need of forex to meet the obligations.
kindly donate to the work we do using our interim PAYPAL https://www.paypal.me/NewsWireNGR
- I “cannot continue to be a member of a Political party that endangers” – Former APC Chairman resigns
- Adams Oshiomhole refers to Governor Obaseki as his “brother and friend” after the two met in Auchi
- In Lagos, Police vows to go after hoodlums and criminals in Lekki and Ajah areas
- Why Government must realize that digital currency is the future
- Breaking: APC pulls out of ongoing local government polls in Delta
- CBN Introduce incentives to diaspora remittances: Beneficiaries to get N5 for every USD received
- Breaking: In Kaduna, Gunmen storm Federal Airport Authority quarters, abduct staff, family members
- Buhari and Osinbajo get Vaccinated against COVID-19, when will poor Nigerians get theirs?
- “I won’t take any vaccine” – Governor Yahaya Bello has said Kogi state people are not “guinea pigs”
- I tested positive for COVID-19 – Obasanjo