Friday, 5 August 2016

Naira plunges again against the dollar to N400

The naira has been plunging against the dollar in recent times. Making things more difficult for Nigerians.

According to Punch, it plunged again to 400 on Thursday against the dollar. The shortage of Forex at the inter bank and the black market has continued to weigh on the value of the naira.

It closed at 378 for the past week,later went to 380 on Wednesday.

This development has been linked to speculators activities and manufacturer's demand. Having in mind that their demand is not being met at the inter market.

Mr Kunle Ezun, a currency analyst at Ecobank insisted that the issue has to do with inadequate forex supply. And stressed that it will continue since 41 items banned from the inter bank market has caused importers and manufacturers to seek for forex at the parallel market.

A Professor of Economics at the Olabisi Onabanjo University, Ago-Iwoye, Sherrifdeen Tella, said the huge demand for dollars could be due to the activities of genuine manufacturers and importers seeking forex for production and business purposes, or corrupt people who had stolen state funds.

Tella said, “The naira is falling at the parallel market because there is scarcity at the interbank market. This fall could be due to the activities of genuine manufacturers or some people you cannot identify.


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