Business Nigeria's Naira Rates Is Converging, 5 Things You Should Expect

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ProfRem

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Nigeria's foreign exchange market is gradaully closing up and the Central Bank Of Nigeria, CBN, aim at converging the multiple rates almost here.

Yesterday, the FMDQ OTC, official market for trading debt securities, forex and other financial products in Nigeria, has asked banks to start quoting rates from the Investors’ & Exporters’ FX Window instead of the CBN official rate.

This window was created by the Central Bank of Nigeria (CBN) in April to boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions.

1. There will be higher fuel prices as the nation's currently pegged rate at 305 per dollar for oil marketers

2. Price of goods and services may jery up further - inflation

3. Abokis and parallel market operators may go underground with access to foreign exchange becoming headache for Nigerians

naira Rate.JPG

4. When next you are going for religious pilgrims - trips to Mecca, Rome or Jerusalem, no subsidize rate anymore.

5. If not managed effectively, the currency may witnessed another depreciation and be ongoing on its way to becomes worst currency for another year round.

Meanwhile, the Naira on Wednesday appreciated marginally against the dollar at the parallel market.

The Nigerian currency gained 50k to exchange at N362.50, stronger than N363 posted on Tuesday, while the Pound Sterling and the Euro traded at N473 and N422 respectively.

At the Bureau De Change (BDC) window, the Naira was sold at N363, while the Pound Sterling and the Euro traded at N472 and N423 respectively.

The Naira, however, depreciated at the investors’ window, selling at N368.50 from 367.28 to the dollar.

If Central bank of Nigeria, finally gives nod to the Investors' window as the new official rate, then, the market will finally converged between 360-370 to the dollar.
 
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