Economy And Business

BREAKING: Naira Falls Terribly Low At Official Market, Trades N422/$1

Advertisement
Advertisement

Naira has crashed terribly low at the official market, trades at N422/$1.

 

 

Newsonline reports that the Nigerian currency, the naira has dropped by 2.6 percent to N422 per dollar, hitting an all-time low at the Nigerian autonomous foreign exchange (NAFEX) rate — the default FX reference for official and legitimate transactions.

 

ALSO: Dollar To Naira Exchange Rate Today 14 October 2021 (Black Market Rate)

[the_ad id=”14679″]

NAFEX rate is the prevailing rate in the investor and exporters (I&E) window which the Central Bank of Nigeria (CBN) adopted in May 2021 as the country’s official forex market.

 

The sharp decline came days after Vice-President Yemi Osinbajo called the CBN to allow the naira reflect the realities of the market.

 

Osinbajo had said the exchange rate is artificially low and deterring investors from bringing foreign exchange into the country.

 

 

“Prof. Osinbajo is not calling for the devaluation of the Naira. He has at all times argued against a willy-nilly devaluation of the Naira,” Laolu Akande, spokesperson to Vice-President had explained in a statement.

 

[the_ad id=”14679″]

 

“For context, the Vice-President’s point was that currently the Naira exchange rate benefits only those who are able to obtain the dollar at N410, some of who simply turn round and sell to the parallel market at N570.

 

“It is stopping this huge arbitrage of over N160 per dollar that the Vice-President was talking about. Such a massive difference discourages doing proper business, when selling the dollar can bring in 40% profit!

 

 

“This was why the Vice-President called for measures that would increase the supply of foreign exchange in the market rather than simply managing demand, which opens up irresistible opportunities for arbitrage and corruption.

 

“It is a well-known fact that foreign investors and exporters have been complaining that they could not bring foreign exchange in at N410 and then have to purchase foreign exchange in the parallel market at N570 to meet their various needs on account of unavailability of foreign exchange.”

[the_ad id=”14679″]

Checks by Newsonline Nigeria on Thursday showed that the local currency, which opened trading at an indicative price of N413.50 to a dollar, dropped to N422 at the end of Thursday’s trading.

 

During intra-day trading, the naira traded as high as N436 per dollar on the spot while it sold for as low as N404/$1. On the future side (futures contracts), it was quoted as high as N446 and low as N419.88 to the dollar at the window.

 

 

“The rate is guided by the CBN — it is supposed to be flexible but not,” a banker told TheCable.

[the_ad id=”14679″]

“When the market moves, it usually moves in a big way. I think he moved from N380 to N411 at a point.”

At the parallel market, the currency remained stable at N570 to a dollar.

Advertisement
NewsOnline Nigeria

Recent Posts

  • Economy And Business

Widows, Wives, and Over 2,000 Residents of Ikeja Police Barracks Benefit from Healthcare and Aid Initiative

Over 2,000 individuals from the Ikeja Police Barracks community benefited from an impactful outreach program spearheaded by Young Professionals for Tinubu (YP4T), an…

12 minutes ago
  • Featured

Open Heaven 24 December 2024 RCCG Daily Devotional

Open Heaven 24 December 2024 RCCG Daily Devotional can be accessed below.   NewsOnline Nigeria…

18 minutes ago
  • Exchange Rates

Black Market Dollar To Naira Exchange Rate In Lagos, FCT, 24 December 2024

Black Market Dollar To Naira Exchange Rate in Lagos and FCT today, 24 December 2024.…

22 minutes ago
  • Crime Watch

BREAKING: Dele Farotimi Released From Prison Few Hours To Christmas

Dele Farotimi has been released from prison few hours to Christmas.   NewsOnline Nigeria reports…

26 minutes ago
  • Crime Watch

BREAKING: Queen Naomi, Oriyomi, Fasasi Remanded In Prison Over Ibadan Stampede

Queen Naomi, Oriyomi, and Fasasi have been remanded in prison over the Ibadan stampede.  …

33 minutes ago
  • Entertainment

New Edition of the ‘I Just Saw Jesus’ Book Extends 40-Year Legacy of Media Ministry

Forty years after the release of the original JESUS film, Jesus Film Project is releasing an…

40 minutes ago