Home Skytrend Consulting Blog Dollar scarcity bites, Naira plunges to N496 record low in 4 months

Dollar scarcity bites, Naira plunges to N496 record low in 4 months

4
Dollar scarcity bites, Naira plunges to N496 record low in 4 months

Dollar scarcity bites, Naira plunges to N496 record low in 4 months

The Nigeria’s naira continues to plummet as it exchanges N496 compared to the United States dollar on Friday November 27, 2020, lowest rate in four months.

This represents N6.00k loss when compared to the exchange rate of N490 that it exchanged on Thursday in the parallel market.

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

At the Investors and Exporters (I&E) forex window, the market opened with an indicative rate of N388.70k signalling 0.55k depreciation compared with N388.15 opened with on Thursday, data from the FMDQ reveals.

The Naira has been suffering intense depreciation and steady decline against the dollar at the black market in recent times due to dollar scarcity and speculative purchases.

SKYTREND CONSULTING in house analysts predicted yesterday it may fall to N500/$ next week as forex scarcity persists. This may even happen at the beginning of next week.

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.




Call 0803 239 3958 for free financial consulting advice for your businesses. Attend our bi-monthly Peachtree Sage 50 accounting and reporting seminar.
Reach us or send your financial updates and articles to info@skytrendconsulting.com.

READ ALSO! Naira free fall: Parallel market not determined by demand, supply forces — CBN Governor

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Naira plunge: Speculators will suffer huge loss, Operators warn

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! Is N-Power Truly Empowering Nigerian Youths?

4 COMMENTS

Comments are closed.