Nov 6 (Lagos) - Naira has gained against the USD on the so called parallel market as easykobo analyst predicted on Oct 30. According to recent reports, Naira is now under 1000 to $1 from 1310 levels just last week.
That prediction was based on what looked like an extended short attack, something that our analyst noticed. This is something that usually happens in the stock market and not on currencies. But to our analyst it looked like it had all the properties of that kind of a short attack.
Now we have a situation where the speculators and hoarders are left with the bag full of Dollars that they must dump to limit their losses because Naira could strengthen even more. To be honest, our analyst should be paid in Dollars, but he is paid in Naira and that will never change.
Naira is undervalued at these levels as per our analyst. This could be right or it could be wrong. Right now it looks like his prediction is coming out right. The speculators and hoarders of the Dollars are panicking as we read this article. Some are trying to think that Naira will fall again, which it may or it may not, no body knows.
What is known is that in this world there is no shortage of US Dollars, they are printed like newspapers in the US. People there complain that the supply is too much and leading to inflation. Meanwhile in Nigeria, we are told that there is shortage of Dollars because some few selected people can't manage the Dollar supply properly. Those people may have left the CBN already. We already know the ex-CBN Governor is in EFCC custody.
So looks like we are not ready to turn in to a Zimbabwe, no thank you.
reporting for easykobo.com on Monday, November 6 2023 from Lagos, Nigeria