Naira
remains flat at the parallel market on Thursday, having sold for
N242.5/$ by black market dealers at the Hadji Camp area of the Murtala
Muhammed Airport.
However, Bloomberg quoted Hasan Melo, Head of Roysygma Bureau de Change Ltd., as having said by phone that black market dealers sold dollars at the rate of N241 in Lagos, representing a N1 appreciation when compared with Wednesday’s record low of 242/$ on the parallel market.
At the interbank market, naira fell 0.3 per cent to N198.90 per dollar, having mostly traded between N198 and N200 since the start of March. But the Central Bank maintains its peg on the naira at N196.95 to the dollar on Thursday.
Economic and financial analysts have predicted that the United States dollar at the parallel market might hit N250/$ very soon following the trading of the currency against the greenback at record lows.
They said the best action might be for the Central Bank of Nigeria (CBN) to devalue the currency to N240 or N250 to mitigate a looming major economic crisis.
Non-deliverable forwards indicate the naira will weaken to N249.75 in 12 months.
Analysts believed the Central Bank’s moves risk creating an “inflationary spiral” as local manufacturers struggle to fill the void left by imports dropping.
Average yields on naira-denominated government debt rose three basis points to 15.3 per cent on Wednesday, the highest since March 30.
Meanwhile, Standard & Poor’s (S&P) rating agency, on Wednesday, said Nigeria would have to gradually devalue its currency at some stage, possibly by more than 15 per cent.
Investors see a devaluation of the naira as long overdue for Africa’s largest economy and biggest oil exporter, which has been battered by the recent tumble in crude prices.
After devaluations in November and February, the Central Bank has recently focused on curbing access to hard currency on the official interbank market for importers of some goods, introducing stringent restrictions three weeks ago.
But those measures just delayed the inevitable, said Ravi Bhatia, Director of Sovereign Ratings at S&P.
“Another devaluation is inevitable. They will have no option but to devalue,” said Mr Bhatia at a media briefing.
The local currency has been hitting record lows on the parallel market since the latest Central Bank measures introduced three weeks ago.
However, Bloomberg quoted Hasan Melo, Head of Roysygma Bureau de Change Ltd., as having said by phone that black market dealers sold dollars at the rate of N241 in Lagos, representing a N1 appreciation when compared with Wednesday’s record low of 242/$ on the parallel market.
At the interbank market, naira fell 0.3 per cent to N198.90 per dollar, having mostly traded between N198 and N200 since the start of March. But the Central Bank maintains its peg on the naira at N196.95 to the dollar on Thursday.
Economic and financial analysts have predicted that the United States dollar at the parallel market might hit N250/$ very soon following the trading of the currency against the greenback at record lows.
They said the best action might be for the Central Bank of Nigeria (CBN) to devalue the currency to N240 or N250 to mitigate a looming major economic crisis.
Non-deliverable forwards indicate the naira will weaken to N249.75 in 12 months.
Analysts believed the Central Bank’s moves risk creating an “inflationary spiral” as local manufacturers struggle to fill the void left by imports dropping.
Average yields on naira-denominated government debt rose three basis points to 15.3 per cent on Wednesday, the highest since March 30.
Meanwhile, Standard & Poor’s (S&P) rating agency, on Wednesday, said Nigeria would have to gradually devalue its currency at some stage, possibly by more than 15 per cent.
Investors see a devaluation of the naira as long overdue for Africa’s largest economy and biggest oil exporter, which has been battered by the recent tumble in crude prices.
After devaluations in November and February, the Central Bank has recently focused on curbing access to hard currency on the official interbank market for importers of some goods, introducing stringent restrictions three weeks ago.
But those measures just delayed the inevitable, said Ravi Bhatia, Director of Sovereign Ratings at S&P.
“Another devaluation is inevitable. They will have no option but to devalue,” said Mr Bhatia at a media briefing.
The local currency has been hitting record lows on the parallel market since the latest Central Bank measures introduced three weeks ago.
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