Aug 11 (Lagos) - The Naira gained on the official market today and was trading at 378.91 against the USD and 496 against the GB Sterling. Last week it had crossed well over the 500 mark for the Pound sterling and 385 against the USD.
In the parallel market however the Naira continued to tread lower around 475 to 1 USD as speculators held the nations currency lower even after a devaluation.
What is the true value of the Naira, is it justified at 475 levels or is it undervalued at some point?
Foreign investors do not seem to get it that the currency has already devalued and actions of local speculators make foreign investors feel that way. The inability of the Central Bank to do anything compounds the overall helplessness of the Naira.
If you ever stepped in to Lagos markets you will immediately realize how valuable the even 1 Naira is. Try and purchase an item at the right price and you will come to know the value of money. Foreign investors cannot understand that because they are not even in the country. We need to show this to them. Its better they stay away if all the want is devaluation after devaluation. No country can sustain on such policies.
We need to to believe in the Naira as at gets undervalued at some point and we cannot expect it to keep on falling more and more. The economic destruction of the last 4 years is there for all to see and another 3-4 years of same might take us to point of no return.
Naira is very valuable, just step in to a Lagos market to find out for yourself.
As of now we are waiting for gains in the official window to replicate in the parallel market and create a panic situation among the currency hoarders and speculators that they don't get cause offside.
reporting for easykobo.com on Tuesday, August 11 2020 from Lagos, Nigeria