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Tag: Naira

  • Naira closes at N1,240/$ in parallel market

    Naira closes at N1,240/$ in parallel market

    The naira yesterday closed at N1,240 to dollar in the parallel market. It closed at N1,245 to dollar on Wednesday, representing N5 to dollar appreciation.  

    The local currency has of recent commenced rapid recover, as volatility in the market dropped after the Central Bank of Nigeria (CBN) commenced dollar sales to bureau de change operators.

    The CBN had directed that all authorized dealers pay Personal and Business Travel, allowances (PTA/BTA) to their customers through electronic channels only, including debit or credit cards instead of cash.

    “In line with the Bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, All Authorized Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards. For the avoidance of doubt, payment of PTA/BTA by cash is no longer permitted,” the bank said.

    Importers are finding it increasingly difficult to secure the necessary funds from the official FX market and black market.

    Legitimate needs driving the demand include Form A applications for Business Travel Allowance (BTA), Personal Travel Allowance (PTA), school fees, and medical fees. Small and Medium Enterprises (SMEs) are also grappling with the scarcity, as highlighted by the use of Form Q.

    Read Also: FULL LIST: Jail term, fine, other consequences for mutilation, abuse of naira notes

    “The problem is that dollars are scarce in the market. People are not bringing dollars and demand is so high that is why the price is going up,” a street trader told Business Day on Tuesday morning.

    Association of Bureaux de Change Operators of Nigeria (ABCON) President, Dr. Aminu Gwadabe, said aside monetary policy tightening that led to interest rate hike and more investment in government instruments and clearance of $7 billion forex backlog forward commitments, the recall of the BDCs has significantly boost dollar liquidity at the retail end of the forex market.

    Gwadabe therefore expressed ABCON’s gratitude to the Cardoso-led CBN and other related agencies for the recognition of BDCs as the third leg of the foreign exchange market and an effective exchange rate transmission mechanism in forex management.

    He said: “The reconsideration of the BDCs into the main stream foreign exchange market has not only demystified illegal economic behaviours such as  hoarding, rent seeking, round tripping and FX holding position, but also led to the emergence of  exchange rate convergence.”

    Gwadabe said that the stability in exchange rate has already started to have positive impact on the prices of goods and services. For instance the price for international school fees has dropped by 15 per cent; cost of medical tourism reduced by 20 per cent and prices of air fares for local and international trips dipped by 25 per cent.

    He said: “The current developments in the foreign exchange market has started reigning in inflation as prices of most necessities are becoming relatively lower in the market. In a most serious note, the positive impacts include also heighten confidence of the public in the local currency as it eliminates currency substitution behavior which hitherto being adding pressure on our local currency”.

  • Naira appreciates at official market, gains 2.4%

    Naira appreciates at official market, gains 2.4%

    The Naira gained at the official market, trading at N1,278.58 to a dollar on Tuesday.

    Data from the official trading platform of the FMDQ revealed that the Naira gained N30.81 or 2.35 per cent, compared to the previous trading date on Thursday, March, 28, 2024 just before the Easter holiday at the rate of N1,309.39 against the dollar.

    However, the total turnover reduced to $111.18 million on Tuesday, down from $857.78 Million recorded on Thursday, March 28, 2024.

    Read Also: Convert your dollar to naira now, Reno Omokri advises

    Meanwhile, at the Investor’s and Exporters’ (I&E) window, the Naira traded between N1,312.00 and N1,250.00 against the dollar.

    (NAN)

  • Naira sustains rally at N1,245/$ in parallel market

    Naira sustains rally at N1,245/$ in parallel market

    The naira yesterday exchanged at N1,245 to dollar in the parallel market. It closed at N1,248 to dollar on Monday, representing N3 to dollar appreciation. 

    The local currency has of recent commenced rapid recover, as volatility in the market dropped after the Central Bank of Nigeria (CBN) commenced dollar sales to bureau de change operators.

    The CBN recently directed that all authorized dealers to pay Personal and Business Travel, allowances (PTA/BTA) to their customers through electronic channels only, including debit or credit cards instead of cash.

    Read Also: Naira rallies as foreign reserves gained $1.04b in Q1

     “In line with the Bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, All Authorized Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards. For the avoidance of doubt, payment of PTA/BTA by cash is no longer permitted,” the bank said.

    Importers are finding it increasingly difficult to secure the necessary funds from the official FX market and black market.

    Legitimate needs driving the demand include Form A applications for Business Travel Allowance (BTA), Personal Travel Allowance (PTA), school fees, and medical fees. Small and Medium Enterprises (SMEs) are also grappling with the scarcity, as highlighted by the use of Form Q.

    “The problem is that dollars are scarce in the market. People are not bringing dollars and demand is so high that is why the price is going up,” a street trader told Business Day on Tuesday morning.

  • Naira rallies as foreign reserves gained $1.04b in Q1

    Naira rallies as foreign reserves gained $1.04b in Q1

    The naira regained one-fifth of value in the past five weeks as increased foreign exchange  inflows saw Nigeria’s forex reserves rising by $1.04 billion in the first quarter of this year.

    The    reserves, which had ended 2023 at $32.912 billion, closed weekend at $33.952 billion, an increase of $1.038 billion. The build-up of the   reserves came within the same period the Central Bank of Nigeria (CBN) completed payment of forex backlog of $7 billion.

    The naira rose by about 22 per cent in March to close at N1, 303.842 per dollar as against N1, 544.08 per dollar recorded at the end of the previous month. At the parallel market, the naira rose by about 20 per cent to close the month at N1,300 per dollar.

    Analysts agreed that the forex reserves accretion and naira gain may continue in the period ahead as inflows remain upbeat.

    Analysts at Financial Derivatives Company (FDC), Cordros Capital, Afrinvest Securities and Arthur Steven Asset Management,  said they expected the naira to remain stable in the meantime,  given the monetary stance of the CBN.

    Managing Director, Financial Derivatives Company (FDC), Mr. Bismarck Rewane, said the current monetary stance suggests further stability in naira and increased investors’ confidence in the economy.

    He noted that the high interest rate is expected to support investment inflows from portfolio investors, which combined with a quadruple in remittance inflows and rebounding oil and non-oil export earnings, will support external reserves.

    “Essentially, the naira’s stability will continue amid higher interest rates,” Rewane said  at the weekend.

    He added that while it might still take some  time for exchange rate gains to translate to reduced commodity prices in the open markets, “the future holds bright promises.”

    Cordros Capital acknowledged  CBN’s continuous efforts in the forex market, which are expected to keep the naira stable in the meantime.

    Afrinvest stated that   naira would remain stable and trade within similar band over the next weeks as the apex bank continues to attract more capital inflow.

    Read Also: Call Ganduje’s attackers to order, APC chief tells Soludo

    Managing Director, Arthur Steven Asset Management  Olatunde Amolegbe  said continuing increase in forex reserves will support current efforts aimed at fostering liquidity and stability at the forex market.

    “The increase is a positive signal for improved liquidity in the forex market. This should ultimately help to stabilise the exchange rate and strengthen it further,” Amolegbe said.

    President, Association of Capital Market Academics in Nigeria, Prof. Uche Uwaleke  said any increase places the CBN in a stronger position to meet forex obligations as well as intervene in the forex market.

    “If this development is sustained, we are likely to witness an appreciation of the naira in the forex market and more stability in the exchange rate following improved liquidity. This is one positive development capable of keeping away destructive speculators from the forex market,” Uwaleke said.

    He noted that inflation rate would  most likely moderate given the exchange rate pass-through to commodity prices.

    With the lingering crises in Middle East and Eastern Europe amid elevated oil demand, most analysts expect  crude oil price to remain substantially above Nigeria’s budget benchmark of $77.96 per barrel.

    The International Energy Agency (IEA), in its latest report, increased its global crude oil demand projection for 2024 by 1.3 million barrels per day (mbpd) to 103.2mbpd.

    IEA estimated that extended output cuts by Organisation of the Petroleum Exporting Countries (OPEC) and its affiliates (OPEC+) would continue to moderate supply output, keeping off any major downside volatility.

    OPEC+ members had extended their voluntary production cuts of 2.2mbpd into the second quarter of 2024, with expectation of further extension beyond the first half.

     CBN Governor Olayemi Cardoso has outlined that ongoing efforts to strengthen the country’s forex position would lead to increased stability in forex reserves and naira.

    According to him, the collaboration with Ministry of Finance and the NNPCL to ensure that all forex inflows are returned to the CBN will greatly enhance forex flows and contribute to the accretion of reserves.

  • Naira to sustain rally after 46% gain against dollar, says Rewane

    Naira to sustain rally after 46% gain against dollar, says Rewane

    • Rides on $7b FX backlog clearance, foreign investments surge

    The naira will sustain ongoing rally at both official and parallel markets as dollar liquidity rises, Managing Director/CEO, Financial Derivatives Company Limited, Bismarck Rewane, has predicted.

    In an emailed note to domestic and foreign investors, he disclosed that cost pressures are likely to ease due to the naira’s rebound by 46.18 per cent to yesterday’s close N1,310/$ from an all-time low of N1,915/$ in February at the parallel market.

    Rewane, also an economist, said the naira had since February, appreciated significantly across the markets, fueled by sanitisation of the forex market, an increase in forex supply and a fall in the demand for dollars.

    The settlement of the $7 billion verified forex backlog of forward commitments have boosted confidence and improved the credibility of the Central Bank of Nigeria (CBN).

    Goldman Sachs is forecasting that the naira will appreciate further to N1,200/$ by the end of 2024.

    “However, the pressing question remains, will the naira tumble again? The answer is No, if Nigeria continues to do the right things. Prospects for forex earnings are promising, with foreign portfolio investments on the rise. Nigeria’s key export commodities have also seen significant price surges, with cocoa trading at a record high of over $10,000 per tonne in the global market and oil prices exceeding $85pb as oil production reached an impressive 1.48mbpd in February 2024,” Rewane stated.

    Read Also: Tinubu appoints Usman Bello as new CCB Chairman

    The naira’s appreciation, he further stated, followed the Monetary Policy Committee (MPC) meeting on February 26 and 27, during which interest rates was increased sharply by 400 basis points (bps) to 22.75 per cent per annum.

    The MPC also met on March 24/25, agreeing to hike interest rates by 200bps to 24.75 per cent per annum to keep prices in check.

     “These moves, combined with the CBN house-cleaning exercise to mop up excess demand for dollars, signal that the apex bank intends to stay on the path of orthodoxy to positively anchor inflation and stabilize exchange rates. Consequently, though slowly, the naira is expected to sustain appreciation,” Rewane said.

  • Naira will continue to stabilise – Shettima assures

    Naira will continue to stabilise – Shettima assures

    Vice President Kashim Shettima has assured that the Naira will continue to stabilise in the coming weeks and months.

    Shettima gave the assurance at the inauguration of the National Design and Innovation Competition, held at the Presidential Villa, Abuja, on Wednesday.

    The News Agency of Nigeria (NAN) reports the event was organised by the Interior Designers Association of Nigeria (IDAN) to spur entrepreneurship and creative ventures among youth.

    NAN reports in February the Naira exchanged for as high as N1900 to a dollar, but the currency had gradually appreciated following some monetary policies taken by the government.

    The Naira currently exchanged at N1396 to a dollar in the official market and N1470 in the parallel market.

    The Vice President assured that the government will continue to implement policies and programmes to stabilise the Naira.

    Shettima also assured that President Bola Tinubu’s administration would continue to address issues of food, nutrition and insecurity

    He commended the pivotal role of youths in creativity adding that the government would continue to support their aspirations,

    The Vice President announced plans to include young innovators in the government’s 617.7 million dollars Investment in Digital and Creative Enterprises (i-DICE) programme.

    Read Also:Tinubu, CBN policies strengthening the Naira, says policy think-tank

    Earlier, leader of the delegation and founder of IDAN, Titi Ogufere, revealed plan to train one million youths in furniture production and industrial design.

    According to him, the training will be conducted by IDAN in collaboration with the Federal Ministry of Arts, Culture, and Creative Economy.

    “The initiative will feature design competitions and workshops where participants can showcase their prototypes.

    “They will work with top Nigerian manufacturers like AFP by Julius Berger, TRT Aredo, Wood Styles, IO Furniture, and Nettetal,’’ he said. (NAN)

  • As naira rebounds

    As naira rebounds

    Understandably, much of the reactions that have greeted the somewhat steady rebound of the naira have centred on whether perceptible gains was merely a fleeting phase or whether it signals an imminent return of strength in a permanent sense of which most Nigerians apparently feel that the local currency was entitled. For much as many would vehemently disagree that the administration is on track in its push to reset the entire gamut monetary policy management, fewer still would deny that the broad set of remedies in place to address the drift are beginning to work some magic; and that the economy may in fact be finally be turning the corner under the watchful eyes of its current managers.

    The same of course could be said of the much hyped food shortages that has since been revealed as one of more drama than substance, a rather family but nonetheless opportunistic misdiagnosis to serve narrow partisan ends.

    Agreed, there can be no misstatement of the current realities in the land. As they say in the local parlance –country hard! True, not only is inflation is at the highest, punishing levels ever, for businesses, the cost of keeping afloat has tended to be somewhat unbearable. There is also no denying the hunger in the land with prices of foodstuffs increasingly unaffordable. And surely, no one denies that the removal of subsidy on petrol and the harmonisation of the different rates in the foreign exchange market by the apex bank have come to constitute the main drivers to the hardship currently being experienced.

    But then, like a typical Nigerian accident scene where all you see is bedlam, there was initially, an exaggerated sense of panic that tended to get in the way of what is supposed to be ordinarily, a well-designed policy intervention.  From massive looting of warehouses and storage facilities by supposedly angry and hungry mobs, we heard of trucks being waylaid and their goods carted away by criminal elements to wherever; there was at some point, a sense of the state being in retreat as hoodlums – said to be looking for food – took over.

    Yet, if the truth must be told; ours was certainly not a case of essential commodities suddenly disappearing from the markets and supermarkets and with it a return to the regime of rationing of so-called Essencos as we had in the 80s; nothing of drought or pestilences in such degrees as to occasion massive crop failures and resultant famine. Insecurity was of course a major problem particularly in the rural areas with farmers across the country reporting inability to tend to their enterprise. Again, in all of these, there has – all of these while – been no suggestion that the country ever needed massive, wholesale importation of food and other essential commodities to address the hunger problem!

    Yet, if the panic stoked by the coalescing of the different forces said to be responding to the hunger stimulus could be said to rate high on the Richter scale, the management of the entire episode has been just as astounding!

    Mercifully, the situation is now different with civility finally returning. From Lagos to Niger, Borno to Oyo, Ogun to Kebbi, now the story across the board is that things are beginning to quieten; whereas the pangs of hunger may not have faded completely, there is at least a sense that some things are being done to quieten the accompanying rumbles of the stomach!

    Have the correct lessons been learnt? It seems yet early in the day to say. I supposed there is – at least at the moment – an increasing understanding of what each actor in the agricultural value chain is expected to bring to the table. Which means those looking to the steely precincts of the Three Arms Zone are simply wasting their time. Abuja has neither the land to till nor the farmhand to put to work. Even the old top-down approach of a federal government purchasing and distributing tractors and other vital farm equipment to state governments have become somewhat anachronistic.

    The states have the land, the structures and so should be encouraged to find the means to get the business done with the federal government availing them robust fiscal support in credit, tax waivers and incentives.

    Back to our beloved naira. I understand the concerns being raised about the value of the currency at this time. Should it be N1,200 or a return to N500 to one United States dollars?  Such discussions would seem to me as being utterly misplaced at this time. Agreed, Yemi Cardoso and his team have done well to put measures in place for effective monetary policy management. While the country can expect to harvest the returns in the long term, it seems to me as wishful considering that the fundamentals of the economy have not changed in any appreciable measure.

    Read Also: FEC approves fund to bridge $878bn national infrastructure deficit

    Unlike the current obsession with the value of the currency which in the long run could actually return to the country to the same starting block of import dependency, greater focus should be on currency stability with strict emphasis on the diversification on forex sources. What we are dealing with here goes beyond the sentiment of having a strong national currency. It is about the nation’s capacity to produce those basic essentials that it truly needs and competitively too. It is also about whether or not it can generate sufficient foreign exchange to import those things it cannot produce locally. In another sense, it comes to the question of whether a country with very little export base can afford the luxury of a strong currency without endangering any real prospects of export-led development.

    Yes, our super patriots making the case of naira-dollar parity might want to know that the South Korean currency – the Won, yesterday traded at 1,339.9714 to the United States dollar! Yes, the currency of that famed industrial powerhouse equally traded at 0.98977818 to our beloved naira!

    Talk of a country whose productivity compares with most of the developed world and one that actually boasts of top of the range industrial goods from automobiles to electronics preferring to keep its currency ‘undervalued’ to ensure an appreciable competitive edge for its exports and also to guarantee its slice of the pie in the highly competitive global trade arena!

    I do understand the tough choices that the Bola Ahmed Tinubu administration is challenged to make. They are neither for the faint-hearted nor for those given to populism. They are painful but necessary choices if the country must leapfrog into the future that we all claim to desire.

    I mean a future in which the dream of a graduate after 10 years of working is to buy a ‘brand new tokunbo’ car because his country continues to lack both the technical and credit infrastructure to afford him/her the so-called ‘tear-rubber’!

    To those still reminiscing in the so-called good old times, the message at this time should be – where have that past led us!

  • Naira strengthens across markets

    Naira strengthens across markets

    • ‘Stable currency manifesting gains of reforms’

    Naira appreciated across foreign exchange (forex) markets in a steady recovery after a bouquet of initiatives by the Central Bank of Nigeria (CBN) to stem speculative trading and volatility.

    Trading data at the weekend showed that the naira appreciated by 1.5 per cent to N1,602.75 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM). At the parallel market, the naira gained 31 basis points to close at N1,595 per dollar.

    Total turnover at NAFEM dropped by 41.6 per cent to $743.54 million, with trades consummated within the range of N1,425.35 to N1,650 per dollar.

    Analysts were unanimous the naira has more upside potential and could sustain its stability while gathering momentum towards a major break in the second half.

    Experts agreed that the steady recovery was due to policy directives of the apex bank.  

    “These efforts are beginning to manifest positive outcomes, as evidenced by the decreased naira volatility observed in the foreign exchange market,” Cordros Capital Group stated at the weekend.

    Cordros Capital outlined that many initiatives by the CBN aimed at stabilising the naira, including addressing forex backlogs, increasing domestic interest rates to make naira-denominated assets attractive, and supplying dollars to bureau de change (BDCs), were behind the stability and recovery seen by the national currency.

    Read Also; Killing of soldiers: Delta community deserted, residents flee home

    “Although the apex bank has yet to fully clear the forex backlogs due to persistently low forex supply, we hold the view that the volatility of the naira will remain subdued in the short term. This expectation is underpinned by reduced currency speculation supported by the CBN’s ongoing monetary tightening measures and improved liquidity resulting from the uptick in forex inflows from foreign portfolio investors (FPIs),” Cordros Capital stated.

    Afrinvest (West Africa) stated that it expected the positive trajectory of the naira to continue in the days ahead, barring any unforeseen development.

    According to Afrinvest, rates across forex markets are expected “to follow a similar trend barring any new developments”.

    Bismarck Rewane’s Financial Derivatives Company (FDC) said the naira has “less downside risk than upside potential”.

    According to FDC, contrary to skepticism earlier in the year that the naira could plunge to N,3000 per dollar, the national currency could maintain its current range and build up its recovery in the second half.

    “Our view is that the naira is bottoming out. It has less downside risk than upside potential. Just like the economy, a U-curve recovery is more likely than a V-curve-quick fix. Our model suggests the naira will trade in the parallel market at the N1,500 per dollar to N1,650 per dollar range through the months of March and April before a gradual and slow recovery,” FDC stated.

    Former Executive Director, Keystone Bank Limited, Richard Obire advised that Nigeria’s heavy and skewed outward-oriented consumption of goods and services as seen in decades of long substantial bills for food and energy imports should be reversed to save the naira.

    Also, the massive corruption-driven capital outflows, which in turn severely damages Nigeria’s capacity to produce at scale that will enable the country to fully engage its large population to create widespread prosperity works against the naira.

    On ways to strengthen the naira, he advised that in the short-term, there is  need to find non-market damaging  ways to increase the supply of hard currencies and reducing the demand for same.

    He said insecurity hampering food production needs to be tackled with a sense of urgency and effectiveness.

    To boost dollar liquidity, the CBN recently directed that all authorised dealers to pay Personal and Business Travel, allowances (PTA/BTA) to their customers through electronic channels only, including debit or credit cards instead of cash.

    “In line with the bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, All Authorised Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards. For the avoidance of doubt, payment of PTA/BTA by cash is no longer permitted,” the bank stated.

  • Naira rebounds to N1,600 per dollar at parallel market

    Naira rebounds to N1,600 per dollar at parallel market

    The naira yesterday exchanged at N1,600 to dollar at the parallel market. It had exchanged at N1,620 to dollar on Monday, representing N20 per dollar appreciation.

    At the Nigerian Autonomous Foreign Exchange Market (NAFEM)– the official market, the naira traded at N1,603 to dollar.

    The local currency has continued to depreciate at both official and parallel markets over persistent dollar scarcity.

    The CBN recently directed that all authorized dealers to pay Personal and Business Travel, allowances (PTA/BTA) to their customers through electronic channels only, including debit or credit cards instead of cash.

    “In line with the Bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, All Authorized Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards. For the avoidance of doubt, payment of PTA/BTA by cash is no longer permitted,” the bank said.

    Importers are finding it increasingly difficult to secure the necessary funds from the official FX market and black market.

    Read Also: Tinubu approves appointment of FCTA Head of Service, Perm Sec, others

    Legitimate needs driving the demand include Form A applications for Business Travel Allowance (BTA), Personal Travel Allowance (PTA), school fees, and medical fees. Small and Medium Enterprises (SMEs) are also grappling with the scarcity, as highlighted by the use of Form Q.

    Former Executive Director, Keystone Bank Limited, Richard Obire advised that Nigeria’s heavy and skewed outward-oriented consumption of goods and services as seen in decades of long substantial bills for food and energy imports should be reversed to save the naira.

    Also, the massive corruption-driven capital outflows which in turn severely damages Nigeria’s capacity to produce at scale that will enable the country to fully engage its large population to create widespread prosperity works against the naira.

    On ways to strengthen the naira, he advised that in the short-term, there is need to find non-market damaging ways to increase the supply of hard currencies and reducing the demand for same.

    He said that insecurity hampering food production needs to be tackled with a sense of urgency and effectiveness.

  • Naira depreciates to N1,620/$ at parallel market

    Naira depreciates to N1,620/$ at parallel market

    • Exchanges at N1,617/$ at official market

    The naira yesterday exchanged at N1,620 to dollar at the parallel market. It exchanged at N1,618 to dollar on at the weekend, representing N2 per dollar depreciation.

    At the Nigerian Autonomous Foreign Exchange Market (NAFEM)- the official market, the naira traded at N1,617 to dollar.

    The local currency has continued to depreciate at both official and parallel markets over persistent dollar scarcity.

    The CBN recently directed that all authorized dealers to pay Personal and Business Travel, allowances (PTA/BTA) to their customers through electronic channels only, including debit or credit cards instead of cash.

    “In line with the Bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, All Authorized Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards. For the avoidance of doubt, payment of PTA/BTA by cash is no longer permitted,” the bank said.

    Importers are finding it increasingly difficult to secure the necessary funds from the official FX market and black market.

    Legitimate needs driving the demand include Form A applications for Business Travel Allowance (BTA), Personal Travel Allowance (PTA), school fees, and medical fees. Small and Medium Enterprises (SMEs) are also grappling with the scarcity, as highlighted by the use of Form Q.

    Read Also: Goldman Sachs predicts N1,200/$ rate for naira in 12 months

    “The problem is that dollars are scarce in the market. People are not bringing dollars and demand is so high that is why the price is going up,” a street trader said.

    Former Executive Director, Keystone Bank Limited, Richard Obire advised that Nigeria’s heavy and skewed outward-oriented consumption of goods and services as seen in decades of long substantial bills for food and energy imports should be reversed to save the naira.

    Also, the massive corruption-driven capital outflows which in turn severely damages Nigeria’s capacity to produce at scale that will enable the country to fully engage its large population to create widespread prosperity works against the naira.

    On ways to strengthen the naira, he advised that in the short-term, there is  need to find non-market damaging  ways to increase the supply of hard currencies and reducing the demand for same.