Friday 18th August, 2017
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Dollar crash looms as demand slumps

Dollar crash looms as demand slumps

There are indications that the dollar and other foreign curren­cies are heading for a crash against the naira as de­mand for foreign exchange by authorized dealers has slumped.
The AUTHORITY learnt yesterday that the dealers were only able to pick $45 million out of the $100 mil­lion offered by the CBN on wholesale spot on Wednes­day.
Industry experts have attributed the slump in de­mand to the rate of forex liquidity being pumped into the system by the CBN, not­ing that it is only a matter of time before the dollar begins another round of crash.
The experts also attrib­uted the new trend to the general cash crunch in the financial system.
The dollar has also crashed against major cur­rencies since US President Donald Trump’s surprising declaration that China is not manipulating the value of the yuan.
The Acting Director of Corporate Communica­tions at the CBN, Mr. Isaac Okorafor, in a chat with newsmen said the major injections made by the Bank in the course of the week were aimed at providing ac­cess to all stakeholders with legitimate need for forex.
“The CBN remains up­beat that the forex market will remain liquid and that Nigerians who genuinely re­quire the forex will get am­ple access to the currency,” Okorafor said.
It will be recalled that the CBN made special in­terventions in the Bureau de Change Segment of the forex market and capped it up with the opening of a new window for Small and Medium Enterprises (SMEs).
These special interven­tions are in addition to over $500 million dollars offered to dealers in the wholesale and retail segments in the past week.

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