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why is dollar rising against naira

The reduction in the value of Naira is an unfavorable circumstance for the importers. Find Below Naira to Dollar Exchange Rate History. Indian demand has steadied following a buying spree late last year, and European demand has been hit by renewed coronavirus lockdowns in the region. This is attributed to her recent payment of foreign debt and the reasonably macro-economic stability she achieved through economic reform measures with a huge foreign reserve. Due to the unbalance of import to exported goods, the demand for dollar is always on the rise, which generally causes a continued depreciation of the naira. Thereby making billions overnight. Please Nigerian government should think well is albout selling all our crude oil. In my opinion, Nigeria’s current economic problem arises as a result of having only one major exportable product, which is petroleum. Though the disparity between the official rate and parallel market rates has narrowed to about 10%, the naira is still experiencing pressure from the strong dollar. Eurozone Inflation Report: Wednesday, 10:00. The local currency declined to N475 to a US dollar on the parallel market, known as the black market. Higher importation and lower exportation is not good for any economy, Nigeria included. 1972 $1 = N0.658 1973 $1 = N0.658 1974 $1 = N0.63 1975 $1 = N0.616 1976 $1 = N0.62 1977 … Commodity prices, similar to oil prices, often move in tandem with the Canadian dollar. ExxonMobil has lifted a force majeure on Nigeria’s Qua Iboe crude oil export terminal, as crude exports resume for the first time in almost six weeks after a fire at the terminal halted operations. Qua Iboe is one of Nigeria’s largest export grades, and is very popular among global refiners, with India, the US, Canada, Italy, Spain, Indonesia, and the Netherlands being key buyers. All current happenings should be negative for the US dollar, but it may be worse for the rest of the world as there is no global recovery without a US recovery. The Corona Virus should accelerate a carbon transition for developing economies, The Biggest Winners & Losers of the U.S Stock Market in 2019, How the Coronavirus Could Create a New Working Class. Naira Trades at N475 Against US Dollar. Business Desk - March 28, 2017. At the Bureau De Change (BDCs), the Naira was sold at N191 to the Dollar on December 24. 2. The trade weighted index has risen from 95 in 2011 to 111 in Jan 2011. View historical exchange rates for the Nigerian Naira against the US Dollar in a tabular format. Although Naira is relatively stable, it is weak and soft when you compare it to other major currencies like dollar and euro. We only have lazy and uncanny people.mannang the exchange and commodity markets. Yesterday (June 2), EUR/USD climbed 0.3% to 1.1172, the highest closing level since March 12. February and March loading programs have been issued for Qua Iboe averaging 169,643 b/d and 153,226 b/d respectively. Olumide Adesina is a France-born Nigerian. Nigeria does not earn enough dollars to balance its demand on the currency. The Central Bank of Nigeria (CBN) has announced the prohibition of all Nigerian exporters who are yet to repatriate their export proceeds, from banking services effective from January 31, 2021. Learn how your comment data is processed. Victoria Njimanze, an investment analyst at a leading investment bank explained in details why the dollar is having a stronghold on the naira, she said: “Currently, more than 60% of foreign bank reserves are denominated in U.S dollars. Before this, in the 70s to early 80s, the naira exchanged for something like 90 kobo to $1. Rent Control Is The Wrong Decision For Londoners. As i said earlier in this article, Petroleum takes more than 3/4 of our exporting products, leaving just about 20% for agricultural products, chemicals etc. Presently Nigeria is having one of the lowest debts to GDP ratio in the world. On the other hand, Nigeria imports about anything possible to the country which increases the demand for dollar and then depreciation of Naira. See five reasons behind that trend. Prices for Nigerian crude have suffered in recent weeks, even with lower supply due to the outage. The averaged exchange rate 375. NAN reported that the apex bank had hitherto relied on the nation’s foreign reserve and the Diaspora remittances in its interventions at the foreign exchange market. Acceptance of the presented financial statement for the year ended December 31, 2019 and the report of the audit committee, directors and auditors. The euro has edged steadily higher against the dollar for the past quarter. Nigeria's central bank had long been expected to to allow the naira to be more flexible and trade at a market-driven rate. Reaching at the historic level of Rupees 128.75 per dollar this week, Pakistani rupee has fallen down to almost 21% relative to the US Dollar, from December 8 to up till now. Since the start of the COVID-19 pandemic, the value of the American dollar has reached record highs, as many investors around the world are rushing to have a part of it. The crude, produced from fields 20-40 miles off the coast of southeast Nigeria, is brought to shore at the Qua Iboe terminal via a seabed pipeline system. The truth is that if we have to criticise Emefiele, we have to criticise Soludo and Sanusi for continuously auctioning the dollar against the naira. This is according to a company spokesman yesterday, who confirmed the company had lifted force majeure on Qua Iboe crude loadings. Brother it as come to a point were Nigerians youths should stand up to raise their voices B4 Nigeria will fall deeply. Niger Insurance Plc has obtained shareholders’ approval to restructure its insurance business into general, life and business insurance, with each segment to be structured as a separate legal entity. According to the International Monetary Fund, the American dollar is still the most popular currency. Dollar to naira exchange rate today. We are mostly importing all sorts of things with our limited dollars and not exporting enough to balance trade. From our Obsession. The euro keeps showing strength against the U.S. dollar, indicating a shift to a larger risk appetite among global markets. He continued by saying: “Nigeria is looking to obtain over $6 billion in funding from World Bank, AFDB, and IMF as well as debt services relief on previous foreign debt. This is one of the main reasons why the Canadian dollar is low at the moment. This article has done its best to answer the following FAQs. Nigeria’s current political instability caused by crisis among political parties, Terrorism in the Northern part of the country, extremely low daily power supply etc are driving away foreign investors. The local currency plunged by N3 from N472 it exchanged against the US dollar on Friday to N475 on Monday on the black market. Reason why dollar is still stable at N168 face in getting loans to its! From FMDQ the decision is yet to be agriculture before oil was discovered economy Nigeria! Olufemi Owopetu as directors of the auditors a rise in price of oil in the US dollar in oil... A beneficial opportunity for the US dollar falls against Nigerian Naira there has been bedrock. On a rising dollar and then depreciation of Naira against the US dollar, from 221 recorded on Friday to. Lagos on Monday on the long run etc the United States. declined to N475 Monday... And euro the U.S. dollar, closing at N478/ $ 1 ; save page! 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