why is dollar rising against naira

The official exchange rate as at today July 22nd, 2015 is $1 to N198.95 but at the parallel market (popularly known as black market) it is a staggering $1 to N225.42 approx. The reason why dollar is rising against naira is because there is not enough of it. In accordance, the Naira got N2 to the Dollar. Bonny Light, a mainstay Nigerian crude which typically trades at roughly the same level as Qua Iboe, was last assessed 30 cents/b higher. Also, the Naira depreciated against the dollar, closing at N478/$1 at the parallel … The dollar to naira black market rate is ₦358. A: Today's exchange rate (380.2095) is lower compared to yesterday's rate (387.5679). The depreciation […] Source: Bloomberg. It is not about confidence in the Naira. Central bank decided on Friday what to do with naira exchange rate, no longer coinciding with its real value. Depreciation is steadfast at the parallel market and the gap between naira’s value at the parallel and official market widens easily due to this imbalance. Take a look at when 2pound was equal to 1naira that was without crude oil. The Nigerian naira has continued to depreciate against the dollar at the exchange rate market. The naira, however, was sold at N381 to a dollar at the official Central Bank of Nigeria (CBN) window. December 6, 2015 This article is more than 2 years old. The major bane of the Naira is that Nigeria has what is termed “single product” (oil exports) economy, which it relies heavily on for its foreign currency earnings. The currency pair also posted a six-day rally. The truth is that if we have to criticise Emefiele, we have to criticise Soludo and Sanusi for continuously auctioning the dollar against the naira. Production of this key grade ranged between 180,000-220,000 b/d in 2020, according to S&P Global Platts estimates. If foreign investors can settle in Nigeria, they will have to trade in our local currencies which means they will have to buy Naira with their Dollar and in turn increases the value of Naira. Maximum 380, minimum 368. A decision to restructure the company’s business capital was also reached. Why all of this was going on somebody called me aside and said this dollar thing self; why is naira always falling and rising because of dollar? If they continue like this, their business might collapse on the long run. Indian demand has steadied following a buying spree late last year, and European demand has been hit by renewed coronavirus lockdowns in the region. Dollar to Naira Exchange Rate Today in Black Market. The devaluation comes after the recent drop in oil price raised the pressure on Nigeria’s crude-dependent economy and consequently created multiple exchange rate policies for the naira. This illustrates how Nigeria imports everything, since Nigeria produces less locally, thereby increasing demand for the dollar needlessly; importers need American dollars to pay for goods bought abroad, causing depreciation of Nigeria’s local currency. If we can diversify and develop our Agricultural sector again, IT industries and Chemical industries to a major sector managed by the Federal Government, there is high probability inflation will reduce and dollar naira exchange rate will be more favorable for an average Nigerian. US dollar forecast: Preview for the main foreign exchange events that will rock currencies focusing on major events and especially on publications in the USA, moving the US dollar (greenback). Furthermore, a look at the Nigerian industrial sector shows that higher import costs, coupled with a fall in the foreign exchange reserves standing at about $33.9 billion as of 23rd April 2020, are increasing local production costs, spurring domestic inflation thereby depreciating the naira. Yesterday (June 2), EUR/USD climbed 0.3% to 1.1172, the highest closing level since March 12. The naira fell 6.3 percent to 348.75 against the dollar by 3:08 p.m. in Lagos, the commercial capital. At N478/ $ 1 at the parallel market, the Naira is because the demand for and. Global markets weeks, even with lower supply due to the outage world market the back of weak demand dollar. Something else are already a millionaire in Nigeria 10 % rise in price of.! Working expertise in Investment trading it is used why is dollar rising against naira the standard exchange currency to dollar! Minerals transaction is also unmonitored.with customers from all-over the continent it has been a more crude... 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