National Wire About Nigerians, Nigerian Business and Other Stories
The Nigerian currency, the Naira is set to witness further decline against the US Dollar due to scarcity of the Dollar.
Against expectation, population of Nigerians traveling home for the holidays fell short resulting to shortage of Dollars returning home with them.
The Naira closed at 490 to the Dollar on Friday, from 495 against the dollar last Friday at the parallel market according to Reuters.
In the official interbank window, the naira was quoted at 310.25 to the dollar on Thursday, but it was expected to close at around 305.5, the same level it has traded at since August.
“We see the naira depreciating against the dollar by the time more businesses resume operations next week after the festive season as dollar liquidity remains thin in the market,” one currency dealer said.
Currency experts have earlier predicted the Naira will weaken against the greenback as the New Year approaches.
Experts precisely predicted the naira might fall to 500/Dollar first week of 2017.
The naira has been under severe and continuous pressure as the scarcity of the US currency continues to create ripples in the financial markets and economy.
A director at Union Capital Markets, Mr. Egie Akpata, said at the close of 2016 it was really difficult to predict the direction of the Naira currently because part of the currency market had shut down for the year.
“You can’t really predict the market now because part of the market has shut down for the year. Things will really take shape next week. Currently, it could swing anywhere,” he said.
