L
LequteMan
Guest
The naira seems poised for a run of depreciations at the parallel market following the new development in the country's downstream oil sector.
The currency depreciated 12.5% week-on-week to N360/$ following a rush for dollars after government's decision to throw open permission to import and sell Petrol Motor Spirit, PMS, to any interested Nigerian entity.
This is coupled with reports that the Central Bank of Nigeria, CBN, had secretly devalued the naira: reports which were subsequently denied by the apex bank.
The naira ended the previous week at N320/$ but started brightly on Monday, exchanging at N319 per dollar. It steadied at N320/$ for three days before crashing to N325 per dollar early Friday, possibly due to increased demand for dollars as more businesses try to import fuel.
It however crashed further on Friday, ending the week at N360 per dollar.
Nevertheless, the currency maintained its value at the official CBN peg, exchanging at N199 to the greenback.
The currency depreciated 12.5% week-on-week to N360/$ following a rush for dollars after government's decision to throw open permission to import and sell Petrol Motor Spirit, PMS, to any interested Nigerian entity.
This is coupled with reports that the Central Bank of Nigeria, CBN, had secretly devalued the naira: reports which were subsequently denied by the apex bank.
The naira ended the previous week at N320/$ but started brightly on Monday, exchanging at N319 per dollar. It steadied at N320/$ for three days before crashing to N325 per dollar early Friday, possibly due to increased demand for dollars as more businesses try to import fuel.
It however crashed further on Friday, ending the week at N360 per dollar.
Nevertheless, the currency maintained its value at the official CBN peg, exchanging at N199 to the greenback.
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