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

Published 3 years ago by: Daniel Bosai
[1] 2
at 09:13 AM, 26/02/2016 (3 years ago)

(16065 | Hero) Online (m)

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.


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diutopep at 09:37 AM, 26/02/2016 (3 years ago)
(6178 | Gistmaniac) (f)

GOOD FOR NAIRA......
Reply
BournIdentity at 09:39 AM, 26/02/2016 (3 years ago)
(46279 | Addicted Hero) (m)

Grin Grin Grin Grin Grin chiiaaa, I just dey laugh like say tomorrow no dey.. Na confirm Grin
Reply
diutopep at 09:40 AM, 26/02/2016 (3 years ago)
(6178 | Gistmaniac) (f)

DOLLAR BE WARE!!!!!
Reply
month at 09:55 AM, 26/02/2016 (3 years ago)
(42 | Newbie) (f)

Thank...things gona be alright
Reply
chylind5 at 10:03 AM, 26/02/2016 (3 years ago)
(1764 | Gistmaniac) (f)

What made naira to appreciate was the fear  of Ifeanyi Ubah! He threatened to expose those behind it. Naija I hail oo
Reply
Slimchery at 10:28 AM, 26/02/2016 (3 years ago)
(3272 | Gistmaniac) (m)

Thank God for man like Buhari, More better and smiling things are yet to come, dollar will go below 150
Reply
gogoman at 10:38 AM, 26/02/2016 (3 years ago)
(31872 | Addicted Hero) (m)

what every goes up, must also come down LOL
Reply
BournIdentity at 10:43 AM, 26/02/2016 (3 years ago)
(46279 | Addicted Hero) (m)

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 at 10:44 AM, 26/02/2016 (3 years ago)
(2407 | Gistmaniac) Online (m)

PMB magic.... ride on presido, no mind the detractors. God bless Nigeria
Reply
Otikadinje at 11:07 AM, 26/02/2016 (3 years ago)
(3956 | Gistmaniac) (m)

We shall bounce back WHEN ?

Reply
zezprincess at 11:23 AM, 26/02/2016 (3 years ago)
(8076 | Hero) (f)

Hahaha,Government magic!
Reply
akinmanchy at 11:40 AM, 26/02/2016 (3 years ago)
(11263 | Hero) (m)

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

Reply
Haso112 at 11:47 AM, 26/02/2016 (3 years ago)
(6107 | Gistmaniac) (m)

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 at 02:02 PM, 26/02/2016 (3 years ago)
(9623 | Hero) (m)

Few hands know what they are doing.
Reply
zeigbo at 03:22 PM, 26/02/2016 (3 years ago)
(26955 | Addicted Hero) (m)

all thanks to capital oil ifeanyi uba

Reply
kison at 03:24 PM, 26/02/2016 (3 years ago)
(19581 | Hero) (m)

MAKE HIN REMAIN LIKE THAT OO...BUHARI IS WORKING, BUT HE STILL HAVE TO be careful,be very very careful, CAREFULLLLLLLLL...............
Reply
owolaborn at 03:51 PM, 26/02/2016 (3 years ago)
(441 | Upcoming) (m)

thank GOD
Reply
KennyFidel at 04:49 PM, 26/02/2016 (3 years ago)
(1514 | Gistmaniac) (f)

PMB is working, I'm optimistic, not like some foolish abusing him.
Reply
Trueyarn at 07:25 PM, 26/02/2016 (3 years ago)
(10155 | Hero) (m)

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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