How Did Naira Fall From N400 To N250 Per Dollar In Just 2 Days? Currency Cabal In Nigeria?

Published On: February 26, 2016, 9:13 am
Author:
Daniel Bosai
[1] 2
-- (m) at 26-02-2016 09:13AM

(18974 | Hero)

The naira rose by 50 per cent yesterday against the dollar at the parallel market to N250 from N400, which it traded on Monday.



Quote
The naira had been on a free fall in the last two weeks, peaking at 391 against the greenback at the parallel market last Thursday. The local currency, however, began a gradual recovery on Friday.
LEADERSHIP’s investigation reveals that Bureau de Change (BDC) operators as well as street hawkers in Abuja sold the dollar between N250 and N255.
A bureau de change operator, who simply identified himself as Ibrahim, said that he was very confused as the Naira continued to gain strength.

He said: “Earlier this morning, I bought dollars for N305, but now it is sold at N250, making me to lose N55 in less than 10 hours. I am very scared of buying dollars because of the continued instability.

“Although I am happy that the naira continued to gain strength at the parallel market as an overflow of dollars chased the local currency but we are losing greatly here.”
Forex dealers said the local currency was set to gain further momentum in coming days, arguing that most traders were rushing to reduce the amount of dollars in their holdings.

Currency strategist and experts have also stated that the depreciation the naira had recorded in the last two weeks was mainly artificial, arguing that it was part of the activities of currency speculators to force the Central Bank of Nigeria and the Presidency to devalue the naira.

They are of the view that naira will recover because of two things: the Presidency’s hard stance on not devaluing the naira and the decision of the Bureau De Change operators to peg their profit margin at 3.5 per cent.
President Muhammadu Buhari had on Saturday again rejected the idea of devaluing the naira, despite a hammering of the currency on the secondary market last week.

The president, who spoke at the presidential panel roundtable on Investment and Growth Opportunities in Sharm El-Sheikh, Egypt, said he rejected pressure to devalue the naira because Nigeria did not have the competitive advantage to benefit from devaluation.
The Central Bank of Nigeria (CBN) had, contrary to the expectations of the international community and analyst, refused to devalue the local currency, choosing rather to reduce the rate of foreign exchange outflow from the reserves.

An economist and currency expert at BestWorth Holdings, David James, said the naira would continue its rise to a point where the true value of the local currency could be found against the dollar.




-- diutopep (f) at 26-02-2016 09:37AM
(6183 | Gistmaniac)

GOOD FOR NAIRA......
Reply
-- BournIdentity (m) at 26-02-2016 09:39AM
(46060 | Addicted Hero)

Grin Grin Grin Grin Grin chiiaaa, I just dey laugh like say tomorrow no dey.. Na confirm Grin
Reply
-- diutopep (f) at 26-02-2016 09:40AM
(6183 | Gistmaniac)

DOLLAR BE WARE!!!!!
Reply
-- month (f) at 26-02-2016 09:55AM
(42 | Newbie)

Thank...things gona be alright
Reply
-- chylind5 (f) at 26-02-2016 10:03AM
(1744 | Gistmaniac)

What made naira to appreciate was the fear  of Ifeanyi Ubah! He threatened to expose those behind it. Naija I hail oo
Reply
-- Slimchery (m) at 26-02-2016 10:28AM
(3633 | Gistmaniac)

Thank God for man like Buhari, More better and smiling things are yet to come, dollar will go below 150
Reply
-- gogoman (m) at 26-02-2016 10:38AM
(32462 | Addicted Hero)

what every goes up, must also come down LOL
Reply
-- BournIdentity (m) at 26-02-2016 10:43AM
(46060 | Addicted Hero)

D complete gist dey here,,,
http://www.leadership.ng/news/504249/naira-firms-now-250

Quote
Currency strategist and experts have also stated that the depreciation the naira had recorded in the last two weeks was mainly artificial, arguing that it was part of the activities of currency speculators to force the Central Bank of Nigeria and the Presidency to devalue the naira.

They are of the view that naira will recover because of two things: the Presidency’s hard stance on not devaluing the naira and the decision of the Bureau De Change operators to peg their profit margin at 3.5 per cent.
Reply
-- ficull (m) at 26-02-2016 10:44AM
(2967 | Gistmaniac)

PMB magic.... ride on presido, no mind the detractors. God bless Nigeria
Reply
-- Otikadinje (m) at 26-02-2016 11:07AM
(3936 | Gistmaniac)

We shall bounce back WHEN ?

Reply
-- zezprincess (f) at 26-02-2016 11:23AM
(7923 | Hero)

Hahaha,Government magic!
Reply
-- akinmanchy (m) at 26-02-2016 11:40AM
(11184 | Hero)

Yes currency cabal in Nigeria indeed. I'm glad the president resist the pressure to devalue naira

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-- Haso112 (m) at 26-02-2016 11:47AM
(6590 | Gistmaniac)

Okay, now I'm waiting to see how it goes in the next weeks before I make my comment.. For now.... Comment Reserved.....!!!!
Reply
-- kp45 (m) at 26-02-2016 02:02PM
(10395 | Hero)

Few hands know what they are doing.
Reply
-- zeigbo (m) at 26-02-2016 03:22PM
(26836 | Addicted Hero)

all thanks to capital oil ifeanyi uba

Reply
-- kison (m) at 26-02-2016 03:24PM
(19274 | Hero)

MAKE HIN REMAIN LIKE THAT OO...BUHARI IS WORKING, BUT HE STILL HAVE TO be careful,be very very careful, CAREFULLLLLLLLL...............
Reply
-- owolaborn (m) at 26-02-2016 03:51PM
(440 | Upcoming)

thank GOD
Reply
-- KennyFidel (f) at 26-02-2016 04:49PM
(1509 | Gistmaniac)

PMB is working, I'm optimistic, not like some foolish abusing him.
Reply
-- Trueyarn (m) at 26-02-2016 07:25PM
(10116 | Hero)

Ok,Federal government,nah after prices of everything don go up for market finish,una decide to bring am down,no lele,una try small.
Reply
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