Nigerian currency takes a hit at the parallel market! A trend which could possibly lead to the notorious ‘Naira Devaluation’   


11 march 2020: With the declining oil prices and the global fear amidst the notorious virus, it is not utterly surprising that apart from the stock market being hit with a storm, the local currency is also seen sliding down .


After experiencing the biggest decline yesterday in almost a decade at the stock market , NSEASI further shed some more weight losing 3.35% ( closing at 23,572.75pts) by the end of today’s session due to huge losses recorded in the bellwether stocks.


If this trend continues, Analysts believe that the local government would be left with no choice but to devalue the Naira. The currency slid by 1.10% to N367 per dollar at the parallel market on Wednesday, with respect to other currencies, it declined by 0.63% to close at N478 against the Pound and 1.74% to close at N410 against Euro.


This drop is fairly significant considering CBN took all measures in its power including the introduction of multiple fx regimes and regular interventions to ensure the stability of the currency at the forex market.


On the Investors & Exporters Foreign Exchange Window (IEFX), the Naira gained 0.37% to N368 per dollar. It stayed calm at the highly official pegged price at N306.95 per dollar.


The oil-price battle will have adverse effect on Nigeria's export earnings , by depleting foreign exchange reserves of Africa's biggest economy.


Reporting for EasyKobo on Wednesday , 11 March 2020 in Lagos, Nigeria

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