Naira plummets to N490/$, may exchange N500/$ next week

The Nigeria’s naira continues to plummet against the dollar as it exchanged at an average of N490/$ on Thursday November 26, 2020.

This represents N4.33k loss when compared with an average rate of N486 that it exchanged on Wednesday on the parallel market.

At the Bureaux De Change (BDC) segment of the forex market, Naira weakened by N5 as the dollar sold for N490 on Thursday as against N485 on the previous day.

The nation’s currency has been on a steady decline against the dollar at the black market in recent times.

SKYTREND CONSULTING in house analysts predicts it may fall to N500/$ next week as forex scarcity persists.

On Wednesday, November 25, 2020, the Naira exchanged at the rate of N486 to the United States dollar at the parallel market.

On Monday and Tuesday, it traded at N483 per dollar and has continued to plunge under intense pressure of forex demand in recent days. It had plunged to N484 on Friday.

Operators blame illegal activities by forex speculators for the sharp depreciation. Some traders also attribute the naira decline in value to increased demand due to speculation.

SKYTREND CONSULTING recalls that the forex market has been under intense pressure since March 2020 following a sharp drop in oil pricess as a result of the covid 19 pandemic.

The Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe earlier in the week warned that foreign exchange speculators were taking huge risk and will soon suffer massive loss as a result of what he called “their illegal activities”.

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