US Dollar starts falling against the Naira
NaijaRock
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Posted by Felix Okoli on Tuesday August 4, 2015 at 10:0:51:
As at December 2014, the official price of the US dollar against the Nigerian Naira was about N184 while it was around N190 at the black market. By the time 2015 rolled in and before the April elections, the Naira had further depreciated to about N199 and N220 at both the official and black markets.After the 2015 General elections and for the months of May, June and July, it had fallen as low as N240 to the US dollar in the black market while being pegged at about N197 by the CBN.Reports reaching in now is that the Naira has started to appreciate as from July 2015 ending as it has appreciated to about N202 to N210 at the black market give that many banks in Nigeria now have excess foreign currency in their vaults. The CBN governor had introduced a new policy about a month ago with the hopes of salvaging the value of the falling Naira by restricting foreign currency access to importers who deal with certain goods. The CBN had stopped banks from giving forex to Nigerians who import specific goods.Prior to that action, the Naira had depreciated to as low as N240 at the black market and the CBN felt it needed to act and even moreso with the falling revenue from oil.Lately, however, CBN's action may be reviewed if the Naira keeps getting stronger than the US dollar as the CBN would not want an extremely stronger Naira given that it also holds a bulk of it's resources in US dollars.At the rate at which the US dollar is already falling relative to the stronger Naira, it seems that the currency may have reached it's peak for the year 2015 and may continue in a downtrend till December 2015.The price of Foreign currencies normally rise and fall relative to the Nigerian Naira during different times of the year and also as a result of the CBN's intervention to keep a stable exchange rate. Based on historical reports, the Naira gets stronger as the year winds up and gets weaker as the year goes halfway.
As at December 2014, the official price of the US dollar against the Nigerian Naira was about N184 while it was around N190 at the black market. By the time 2015 rolled in and before the April elections, the Naira had further depreciated to about N199 and N220 at both the official and black markets.After the 2015 General elections and for the months of May, June and July, it had fallen as low as N240 to the US dollar in the black market while being pegged at about N197 by the CBN.Reports reaching in now is that the Naira has started to appreciate as from July 2015 ending as it has appreciated to about N202 to N210 at the black market give that many banks in Nigeria now have excess foreign currency in their vaults. The CBN governor had introduced a new policy about a month ago with the hopes of salvaging the value of the falling Naira by restricting foreign currency access to importers who deal with certain goods. The CBN had stopped banks from giving forex to Nigerians who import specific goods.Prior to that action, the Naira had depreciated to as low as N240 at the black market and the CBN felt it needed to act and even moreso with the falling revenue from oil.Lately, however, CBN's action may be reviewed if the Naira keeps getting stronger than the US dollar as the CBN would not want an extremely stronger Naira given that it also holds a bulk of it's resources in US dollars.At the rate at which the US dollar is already falling relative to the stronger Naira, it seems that the currency may have reached it's peak for the year 2015 and may continue in a downtrend till December 2015.The price of Foreign currencies normally rise and fall relative to the Nigerian Naira during different times of the year and also as a result of the CBN's intervention to keep a stable exchange rate. Based on historical reports, the Naira gets stronger as the year winds up and gets weaker as the year goes halfway.