June 14 (Lagos) - The Naira has devalued to 1500 levels against the USD in the parallel markets as per the websites that track that market. As we close for the salah break, the news disappointed the public because this means that prices especially food items will continue to trend higher in the coming months.
It also shows that the CBN could be helpless in the situation because they seem to have run out of firepower to defend the Naira like they did in April when the sold Dollars and caused the Naira to rise to 1000 levels against the USD. So we are down 50% in less than 2 months.
That sort of a rise and fall is a bad signal for any kind of security whether it an equity or a commodity, the charts look bad. For businesses especially the small and medium enterprises, it poses a continuous challenge to make a budget or set a price for an item.
The situation is worrisome for the economy but it is also true that CBN can suddenly decide to defend the Naira next month and bring it back to 1000 levels. On the other hand, if they fail to act quickly, we may very well approach 2000 levels like we did in March.
We wish you a good Salah break. Holiday has been announced for Monday and Tuesday next week. Make sure to rest well and rejuvenate and don't let this kind of news affect you mentally or your health. See you Wednesday.
reprorting for easykobo.com on Friday, June 14 2024 from Lagos, Nigeria