Category Archives: Exchange Rates
The dollar fell in Asia on Wednesday, hitting a five-month low on the yuan, as the latest coronavirus relief package stalled in Congress and U.S. yields sank on the prospect that further monetary easing might be needed to support the economy.
A hardening perception that the U.S. recovery is lagging Europe has buttressed the euro, which has repelled a rebound in the dollar and rose back above $1.18 on Wednesday.
The naira on Tuesday traded at N472 to a dollar at the parallel market as foreign exchange scarcity persisted.
The exchange rate was N440/$ in the parallel market in June, and operators have continued to demand for the immediate unification of the multiple exchange rates in the country.
The naira resumed trading on the official market at 381 to the dollar after no quotes for two straight sessions, as the central bank unified the country’s multiple exchange rates, Reuters reported on Wednesday.
It noted that the central bank had been under pressure from both the World Bank and the International Monetary Fund for currency reforms in order to qualify for budget-support loans, and from the Nigerian government, to get more naira for its crude oil receipts.
The nation’s official exchange rate may fall to N430 to the dollar by the end of 2020, United Capital Plc, a pan-African investment banking and financial services group, said on Tuesday.
The firm, in its economic forecast for the second half of the year, titled, “Nigeria H2 2020 outlook report: Up in the air,” analysed the state of the Nigerian economy and outlined future projections informed by domestic and global events.
The Association of Bureau De Change Operators of Nigeria has said that currency speculators will lose huge funds as the Central Bank of Nigeria plans to resume dollar sales to over 5,000 Bureau De Change operators across major cities nationwide.
A report by ABCON stated that the naira was facing its greatest risk from the coronavirus pandemic as currency speculators continued to make spurious demand for dollar with hope to make good returns from the rising gaps between official and parallel market rates.
The dollar exchanged for N452 at the parallel market on Wednesday over speculations by operators in the market and the effect of the country’s rising foreign debt.
The Central Bank of Nigeria resumed foreign exchange sales in April ending to commercial banks, to be made accessible to customers wishing to pay school fees, and businesses making essential imports needed to revamp economic activities across the country.
The dollar on Thursday sold for N440 in the parallel market, as Bureau de Change operators were still awaiting CBN’s resumption of foreign exchange sale to them.
The Association of Bureaux De Change Operators of Nigeria has warned its members and forex speculators putting pressure on the naira to stop the practice or risk losing their money.
This came as the dollar was on Wednesday exchanged for N461 on the parallel market.
The Naira on Friday gained against the dollar at the investors window, exchanging at N360.18 to the dollar.
The News Agency of Nigeria (NAN) reports that the naira had exchanged at N360.36 to the dollar on Thursday.