External reserves: Analysts predict naira’s depreciation

As the nation’s external reserves continues its recent downtrend, dropping to $40.8billion as at October 22, 2019, analysts at Cowry Asset Management Limited have predicted a weakening of the naira across all market segments. In a report released last Friday, the analysts said: “In the new week, we expect depreciation of the Naira against the USD across the market segments amid decreasing external reserves.” According to data obtained from the CBN, in Q3-19 alone, the country’s external reserves declined by $3.2 billion, to stand at $41.7 billion. Specifically, in September,…

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Weak naira fuels high building materials’ cost

Reprieve seems to be far from  low income Nigerian seeking roof over their heads as flexible foreign exchange still  triggers high cost of building materials in property market. According to the President of Nigerian Institute of Building (NIOB), Mr. Kunle Awobodu, weak naira to the dollar is responsible for high building material cost in the country, especially imported items for home finishing. This, among other factors, according to the built environment expert, is being reflected in the cost of delivering new homes, making them unaffodable for the target group. Currently,…

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Analysts project naira’s fall as external reserves drop

Citing the recent downward trend in the nation’s external reserves, analysts at Cowry Asset Management Limited have predicted that naira will likely depreciate against the dollar across the different forex market segments this week. The analysts stated this in the firm’s latest “Weekly Financial Markets Review & Outlook (CWR)” obtained by this newspaper at the weekend. Although the analysts did not provide the exact margin by which they expect naira to decline against dollar, they noted that while the local currency closed flat against the Greenback across market segments last…

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Naira remains stable at parallel market

Although it is currently under pressure at the Investors and Exporters’ (I&E) foreign exchange window, the naira continues to remain stable at the parallel market, findings by New Telegraph show. Yesterday, the local currency exchanged at N360 to the dollar, the same rate it had largely traded at over the last 12 months. It traded against the pound sterling and the euro at N448 and N398, respectively. A dollar shortage initially triggered by a slowdown of foreign inflows after local debt market yields declined, coupled with falling oil prices, had…

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Naira weakens on falling oil prices, lower bond yields

The naira weakened to 364 per dollar last Friday, from a quote of N363.50/$ the previous day as falling oil prices tightened liquidity on the currency market, Reuters reported traders as saying. According to the news agency, a dollar shortage was initially caused by a slowdown of foreign inflows after local debt market yields declined. The naira broke through resistance at 363 per dollar, where it has been quoted this week, as liquidity worsened, traders said. Pressure has been building on the naira as oil prices drop and foreign investors…

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Naira drops to 363.50/$ at I&E window

●Foreign investors exit bonds   The naira was quoted at 363.50/$ yesterday, weaker than 362.80/$ a week ago, a development traders attributed to foreign investors pulling back on  local bonds coupled with  repatriation of dividends by businesses. According to Reuters, traders said the naira came under pressure at 363/$ last week due to urgent dollar demand, which were bidding the currency weaker to fill their orders. The news agency reported the traders as saying that the Central Bank of Nigeria (CBN) was targeting dollar sales to foreign investors. Pressure has…

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Seek yee first restructuring, all other problems will evaporate

  The old adage is that “nothing is small or big otherwise by comparison.” Indeed, time it was when: l Our Naira was stronger than the Dollar. At some point in the past it was 95k (less than N1) to $1, but now it is N365 to $1. l Begging was an abomination, but now it is the order of the day. Go to any ceremony whether in the church, the mosque or any social gathering, they are there in quantum plying their trade. l Life was safe on the…

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ABCON: US, China trade war’ll boost naira stability

President, Association of Bureaux De Change Operators of Nigeria (ABCON) , Alhaji Aminu Gwadabe, has said that the association expects the trade wars between the United States of America (US) and China to positively impact the naira as well as the country’s economy. Gwadabe stated this while speaking to financial journalists in Lagos,. He noted that since the beginning of April this year, oil prices have remained above $70/barrel, as the trade war rages. He said the US sanctions on Iran and Venezuela have tightened the supply of crude oil…

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Man attempts to print N20bn fake naira notes

For allegedly attempting to print counterfeit naira notes worth N20 billion, a man, John Elem, is standing trial before Justice Saliu Saidu of a Federal High Court in Lagos. He was arraigned by the Department of State Services (DSS). Testifying yesterday at the commencement of Elem’s trial, the DSS’ principal officer in charge of investigation at the agency’s Ikoyi, Lagos office, Peter Uche, said investigation was launched into the defendant’s activities following the receipt of a petition. Uche, while being led in evidence by the prosecutor, Ike Ugwu, told the…

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‘Lower oil prices may weaken naira to N380/$’

  Should oil prices continue to decline and fall below Nigeria’s Medium Term Expenditure Framework (MTEF) benchmark of $60 per barrel, the impact on the country’s economy could include the naira depreciating to $380/$, analysts at Financial Derivatives Company (FDC) have predicted. In a note obtained by New Telegraph last weekend, the experts also forecast that such a steep drop in oil prices will negatively affect key economic indicators like the external reserves and the country’s economic growth forecast. Specifically, they said: “Although Nigeria remains oil production sensitive relative to…

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