Naira to weaken further on low dollar inflow – Businessday


The naira is expected to depreciate further next week following low dollar inflow from Nigerians in diaspora.

Currency dealers in Lagos said on Thursday that the dollar inflow from abroad during the yuletide was below expectation.

Naira yesterday remained stable at the Bureau De Change (BDC) segment and the parallel market closing at N490 per dollar.

The local currency also remained stable as it closed at N305.25k against the U.S. dollar at the inter-bank spot foreign exchange market according to the data obtained from FMDQ.

The Central Bank of Nigeria (CBN) economic report for the second quarter of 2016 revealed that aggregate foreign exchange inflow into the economy indicated that total inflow was US$15.33 billion.

This represented an increase of 3.7 per cent above the level at the end of the preceding quarter but, showed a decline of 35.3 per cent relative to the level at the end of the corresponding period of 2015.

The development was driven by increase in oil and non-oil receipts. Oil sector receipts, which accounted for 20.5 per cent of the total, stood at US$3.15 billion, compared with US$2.48 billion and US$3.65 billion, recorded in the first quarter of 2016 and the corresponding period of 2015, respectively.