July 25, 2024

Pathfinder News

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Naira May Crash Further Against Dollar

While the e-Naira is seeing massive and impressive downloads, the actual Naira is eroding in the official market. On Monday, the actual Naira closed at N415 at the official Investors and Exports window. The eNaira has seen commendable adoption after it was launched in October this year. But experts are not sure if those downloading the app are using it or keeping it for future use or for fun. The Yuletide season has mounted enormous pressure on the dollar as people prepare for Christmas.

In an exclusive interview,Kelechi Mgboji, a business analyst, said the fall in naira value is expected especially during a Yuletide season. He said the pressure of demand by travellers on the dollar is pushing down the value of the Naira. He said: “Business people who import and travel will mount pressure on the dollar. The more you have more people demanding the dollar, the lower the naira goes. If the dollar is scarce as it is in Nigeria, it will affect the naira.”

He said the true value of the Naira is in the parallel market and that people hoard the dollar due to uncertainty and the volatile economic climate in Nigeria. Nairametrics reported that the exchange rate at the Investors and Export window depreciated by 27 kobo to close at N415 per dollar on Monday. The digital version of the Naira, the eNaira, has continued to coast home in popularity among Nigerians which has made its downloads soar to close to a million.

It has been downloaded 78,000 times in 160 countries as of the second week of November, reports say. It was also reported that Naira’s depreciation against the dollar continues as both currencies closed at N410.13 to one dollar on Monday, against Friday’s N410/$1 at the official market, investors and exporters window. This represents a N0.13kobo drop at the official market rate recognised by the Central Bank of Nigeria. However, during trading, naira hit a high of N412 to one dollar at the market. At the black market, the Nigerian note had depreciated to N486 to one dollar at the end of trading on Monday, slumping below the N485 to a dollar recorded on Friday. This represents N1 difference.