Author Topic: NAIRA STILL ON THE DOWNWARD TREND  (Read 773 times)

Offline solo

  • Global Moderator
  • Guru
  • ****
  • Posts: 5,818
  • Country: 00
  • Gender: Male
  • cool guy
  • OS:
  • Windows XP Windows XP
  • Browser:
  • Firefox 2.0 Firefox 2.0
    • View Profile
NAIRA STILL ON THE DOWNWARD TREND
« on: December 19, 2008, 05:26:06 PM »
The nation?s currency lost 90 kobo to the US dollar at the interbank market on Thursday in what appeared as disturbing signals from the market, as the previous day?s transaction was at $135 to the dollar.
This is in spite of intervention by the Central Bank of Nigeria (CBN), which has announced the closure of its forex market from Monday, December 22, for the Christmas celebrations.
The CBN usually shuts the market for the end of the year holidays, but dealers were surprised by the timing this year considering current market conditions. They argued that it would not have been business as usual since dealers were in desperate mood to make up for the lost grounds.
The apex bank sold $260 million to retail banks at its intervention on Thursday at 134.50 against $290 million at 134 sold on Wednesday.
While the efficacy of CBN?s intervention to stabilise the market is yet to yield the expected results as demand was more than supply, analysts said yesterday that the naira would still plunge further considering the demand at today?s interbank market.
It was gathered that most banks were disappointed yesterday as there was no enough dollars for dealers who were making higher demand to make for the public holidays.
Dealers said the planned closure of the foreign exchange market, coupled with the depreciation of the naira at the apex bank window would raise the tempo of activity at the interbank market today as they will make frantic efforts to cover their positions.
?We expect demand at the central bank?s window to rise sharply on Friday, being the last auction for the year,? one dealer said.
They further said since the CBN window seem to be the only source of dollar supply for now, with over 98 percent dependent on the apex bank, there is likelihood of inactivity at today?s interbank market.
Consequently, a source said a meeting of foreign exchange dealers could be called today to decide on the fate of the interbank market during the period of the holiday.
The naira has fallen sharply against the dollar in the last few weeks, due partly to concerns over the impact falling of oil prices will have on sub-Saharan Africa?s second biggest economy.

Advertisements

PRACTICE MAKES PERFECT.  for your low-cost bulk sms, visit  http://www.solobizsms.com

Nigerian Best Forum . NBF

NAIRA STILL ON THE DOWNWARD TREND
« on: December 19, 2008, 05:26:06 PM »

Enter Your Email Below For Daily Jobs Updates, It's Free

100% Free


Offline Prince

  • Administrator
  • Honorable
  • *****
  • Posts: 32,950
  • Country: ng
  • Gender: Male
  • OS:
  • Windows XP Windows XP
  • Browser:
  • Firefox 3.0.5 Firefox 3.0.5
    • View Profile
Re: NAIRA STILL ON THE DOWNWARD TREND
« Reply #1 on: December 19, 2008, 07:51:40 PM »
The Global financial crisis is also partly the cause of naira dropping.

Nigerian Best Forum . NBF

Re: NAIRA STILL ON THE DOWNWARD TREND
« Reply #1 on: December 19, 2008, 07:51:40 PM »

 

ads