Naira Falls Against Dollar On Parallel Market

Nai­ra over the weekend suffered a slight setback against the greenback on the par­allel market, exchanging for N320 per dollar on Friday as against the N318/$1 on Thursday, April 7.
Bureau de change operators claim the fall in naira can be attributed to the recent fuel crisis,most especial­ly on the foreign exchange market where the dollar is still firmly defeat­ing the naira.
“The recent fuel scarcity is appar­ently one of the reasons we are having the present issues with the exchange rates,” a BDC operator said. “We do hope in all sincerity that the government would do something about the lin­gering crisis.”
Another source, however, re­vealed that the exchange rate stands at N318, but that it is N321 per dol­lar if one was willing “to buy any mo­ment from now.”
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Meanwhile, the overnight inter­bank rate eased on Friday to around 3.5 per cent from 5 per cent last week, even though liquidity in the system fell as banks set aside cash for reserves and for interest on deposits.
A dealer said: “We consider market li­quidity sufficient at the present level to support transactions and this ac­counts for the drop in cost of borrow­ing among banks.”
Traders said that liquidity dropped from about N564.35 bil­lion ($2.84 billion) last week to about N401.7 billion on Friday due to pre­mium payments to the Nigerian De­posit Insurance Corporation (NDIC) and cash reserve ratio (CRR) debits on Thursday.
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Daniel Enisan is a content writer at edliner.com. With a degree in mass communication, Daniel is a full breed journalist. Daniel is a realist, loves the use of sarcasm, a movie and music junkie. He is also a poet and a good listener.

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