Naira Falls To N370 Per Dollar

The fall in the value of the naira is yet to abate as the local currency exchanged for N370 to a dollar yesterday at the parallel market.
It was observed that the fresh pressure on the naira since last week Thursday has seen the currency fell further from N318 to N370 to a dollar, an additional N52 margin.

While the Bankers Committee meeting held in Abuja last week Thursday was considering the inclusion of medical tourism and school fees payment abroad in the prohibition list, TheCable colloquium in Lagos, had some of its participants supporting the policy, as well as opposing devaluation.

Meanwhile, the foreign exchange reserves have fallen to $27.81 billion from $28.95 billion in barely six weeks, representing a decline of $1.14 billion. The Director of Corporate Communications, Central Bank of Nigeria (CBN), Alhaji Ibrahim Mu’azu, said the reserves would have decreased to about $20 billion, but for measures adopted.

President Muhammadu Buhari, while in London, said that his government decided to stop the sale of foreign exchange to bureau de change operators because of fraudulent acts perpetrated by some top officers of the CBN. According to him, some directors of CBN own bureau de change and when foreign exchange comes, they take it to their companies and give government the change.

But the Acting President of the Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, told The Guardian that there is high-level leakages in the system, causing the pressure, adding that devaluation is not totally the answer.

He said government should put mechanism in place to ensure that whatever item everyone demands the dollar for, is actually imported and that quantity declared, alleging that some importers are also involved in the round-tripping.

According to Mu’azu, the renewed pressure in the market could be attributable to announcement effect and CBN is very much aware of the market development and has been responding accordingly, raising hope that as much as foreign exchange earnings improve, market interventions would also increase.

Source: http://www.ngrguardiannews.com/

Naira on a Free Fall: US $ now ₦385 in Black Market

The Nigerian Naira is on a free fall in the parallel market, while official interbank rates remain stable.

According to Vanguard, the demand for dollars to pay for Chinese goods is part of the reason for the latest decline.

According to a BDC operator who spoke on condition of anonymity, “You know China had been on its one month annual holidays. But they resumed work on Monday, and people have to complete payment for goods ordered before the holidays.

They had made 30% down payment to order the goods and they now have to pay the 70% balance otherwise they will lose the 30%.

That is why they are desperate and ready to buy dollars at any rate. Meanwhile supply is scarce and those who have dollars are not willing to sell because they might also need the currency soon”.

The newspaper traces the beginning of the rapid fall of the Nigerian Naira to when the Central Bank of Nigeria stopped the weekly sale to Bureau de Changes with dollars on January 12th, 2016.

The USD rate was 265 Naira then. Now it’s ₦385, 60 Naira down from ₦325 last week, and ₦505 to the British Pound, 65 Naira down from ₦440 last week.

The interbank rates remain the same at ₦199.34 for Dollars.

With school fees and medical bills suspended from the list of official forex last week, the demand on the dollars and pounds in the parallel market is undoubtedly set to increase.

Source: Bella Naija, VanguardNG

These Are The Nigerians Benefiting From The Fall Of The Naira

The Naira has plunged more than 70% in the black market when compared to the parallel market since the Central Bank adopted its “managed float” exchange rate system that saw it introduce quasi capital controls as well as restricting the purchase and sale of forex at its official window. The widening premium between the parallel market rates and the official/interbank rates have increased the activities of speculators and round tripping further worsening the currency situation.

It’s however not just speculators who have benefited the most from the misfortunes of the naira. Several other market participants are also benefiting every single day the naira plummets against the dollar at the parallel market. We take a look at some of them;

Diaspora Nigerians

This is perhaps the best time to live and work outside Nigeria especially if your income is in dollars. Dami, a Nigerian who lives abroad reveals that she and her husband thought rather than wait till summer, they decide to visit Nigeria now that the exchange rate favours them. Sensing blood, many of them exchange their dollars in little tranches believing that today’s rate will always be cheaper than tomorrows. Some believe this is the best opportunity to buy land and houses as the value of the dollar has now risen by about 70% against the Naira while property prices have been somewhat depressed.

Commercial banks

Banks have been under pressure since the price of oil began its devastating fall in July 2014. With huge exposures to the oil and gas sector they have seen their loans increasingly become risky with borrowers missing out on their obligations. However, they have also posted massive gains from forex as can be seen in their income statements at the end of financial year 2014 and the first 9 months of 2015. Most people who purchase items online have also confirmed that banks charge them as much as N290 to the dollar even thought the CBN pegs the rate at around N199.

BDC Operators

These are perhaps the biggest benefactors of Nigeria’s forex woes. The CBN in January banned sale of forex to BDC operators accusing them of buying forex from the CBN at N199 and then selling at the black market. The CBN also noted that the BDC’s buy dollars from the CBN at N197 only to sell to their customers at N250. According to the CBN it’s no wonder that BDC have risen “from a mere 74 in 2005 to 2,786 BDCs today. In addition, the CBN receives close to 150 new applications for BDC licenses every month.”

Exporters

Businesses engaged in exports are also huge benefactors of the declining exchange rate. Revenues from their exports officially should route through the CBN as export proceeds however it is understood that some of them move a chunk of that to the black market. With gains as high as 50% most of them find it hard to resist the lure of selling their hoard at the black markets rather than at the official window.

Friends and associates of the CBN

Reports also suggest that people close to the management of the CBN or indeed the government are also befitting from the fall of the Naira. They get preferential treatment from the CBN by buying at official rates rather than at the black market rates where a lot of Nigerians go to. The CBN has also expressed its desire to sell forex to businesses it perceived are creating jobs at home rather than to cater for “irresponsible demand” which the CBN opines are what other importers of “non essential” goods and services engage in.

Source: http://nairametrics.com/

Black Women are the Least Selective and Desired Race in Online Dating

I have never, been a huge fan of online dating, too scary and way too many freaks out there. There are times though when i have heard of some success stories from friends, and even been invited to some weddings were the couple met online.

Recently, a survey on racial preferences on online dating was done by buzz feed.The findings were interesting and cause for thought; black women were found to be the least selective when choosing partners and least desired by same and other racial groups, whilst white women are not the most desired but they are way more selective than black women.

There are other interesting details, like middle eastern women are most desired.

Makes for an interesting watch and perspective,watch and tell me what you think.

Video Credit: BuzzFeed

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