Panic As Naira Plunges To An All Time Low Of 500 Per Dollar

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Panic As Naira Plunges To An All Time Low Of 500 Per Dollar

The Naira on Monday morning plunged to an all time record low of 500 against the United States dollar, down from 498 it closed on Friday at the parallel market.

The news will be coming as a shock to Nigerians as a whole, most especially economic analysts, who still have predicted a sharp depreciation on the currency.

Naira Weakens Further Against 3 Major Currencies At Parallel Market

It is also trading 615 and 525 to the pound and euro respectively at the back market segment.

At the highly pegged official market, the currency remains unchanged at 305 to a dollar.

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It was learnt that the Chief Executive Officer of the Financial Derivatives Company Limited, Mr. Bismarck Rewane had in a bulletin containing the FDC’s economic outlook for 2017 released in January, predicted that the naira would trade at N350/dollar at the Interbank Foreign Exchange Market and depreciate to N520/$ at the parallel market.

Meanwhile, the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has insisted that the apex bank would maintain its policy of selling 60 percent of available foreign exchange to manufacturers, and continued to intervene in the interbank foreign exchange market to moderate the exchange rate of the naira.

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Addressing the press on the outcome of the Monetary Policy Committee (MPC) meeting on Tuesday, Emefiele said:

“I am happy to say that het reserve today is $28.9 billion. It is exciting to see this happen. But is there a need to float the Naira? It is important to note that we have to manage the reserve.

That means from time to time we will intervene in the market to make sure the exchange rate does not go beyond our expectations and those interventions will be to moderate the rates as necessary.

“The fact that we have begun to see some accretions to the reserves does not mean we have to be reckless.   We will continue the policy of ensuring that foreign exchange is made available to those who are importing raw materials, plants and equipment, those supporting the agricultural sector and not those who want to engage in what I can regard as less important sectors.”

Photo credit: Nigerian Guardian



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