Naira Plunges To 361 Against Dollar As Oil Prices Hit Record High In 2016

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Naira, Dollar, Parallel Market

The naira on Tuesday depreciated further against the United States dollar at the parallel market, as traders and investors continued to await details of the proposed flexible foreign exchange policy from the Central Bank of Nigeria (CBN).

The naira depreciated further to N361 to a dollar on the parallel market yesterday, as against the N357 to a dollar it closed on Monday.

READ ALSO: Naira Weakens Against Dollar As CBN Adopts Flexible Forex Policy

Reuters also gathered that the local currency, which traded at N357 against the greenback on Monday at the unofficial market, was N355 on Friday, June 3, 2016.

The President, Association of Bureau De Change Operators of Nigeria, Alhaji Aminu Gwadabe, said, “Dollar demand has increased due to uncertainty around the central bank’s forex policy.

“Most firms and individuals that normally sell dollars to retail currency dealers are holding on to the cash.”

Following the stance of dollar and the incessant attacks on oil installations within the Niger Delta region by a resurgent group, Niger Delta Avengers, oil prices on Tuesday hit their highest point in eight months.

Brent crude futures were up 67 cents at $51.22 a barrel by 1135 GMT, having hit an intraday peak of $51.29 earlier in the day, their highest since October.

READ ALSO: Forex Crisis: CBN Nullifies N197 Per Dollar Exchange Rate

U.S. crude oil futures also rose 60 cents to $50.29 a barrel, having touched a fresh 2016 peak of $50.37, their highest since October last year.

“With Brent staying above $50, oil is on an upward momentum with the restart of French refineries that were shut on strikes and pipeline attacks in Nigeria,” said Kaname Gokon at brokerage Okato Shoji in Tokyo.

Datboyjerry

Datboyjerry

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