简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:The reason for the depreciation of the naira against major currencies is attributed to the ongoing demand of foreign money to suit specific demands. Some experts suggested that the Federal Government should not be accountable for the decline in the value of the naira, even if they acknowledged that FX demands for school fees abroad have contributed to the naira's depreciation.
The reason for the depreciation of the naira against major currencies is attributed to the ongoing demand of foreign money to suit specific demands. Some experts suggested that the Federal Government should not be accountable for the decline in the value of the naira, even if they acknowledged that FX demands for school fees abroad have contributed to the naira's depreciation.
A multitude of factors, including shifting patterns of international commerce, institutional changes in the economy, and structural transformations in production, have shaped the FX market in Nigeria up to its growth. Prior to the Central Bank of Nigeria (CBN) being established in 1958 and the Exchange Control Act of 1962 being passed, the private sector generated FX, which commercial banks, acting as agents for Nigerian exporters, retained in balances abroad. Exports of agricultural products accounted for during this time. The lack of an active FX market was caused by the Nigerian pound's parity with the British pound sterling and its simple convertibility. But after the CBN was established and the Bank's FX authority was centralized, it became critical to create a local foreign currency market.
Speaking with reporters in Lagos, Tajudeen Olayinka, the CEO of Wyoming Capital & Partners, stated the problem further exacerbated by Nigerians' predilection for imported items. Purchasing domestically made goods and pursuing in his opinion, will significantly increase the value of the naira beyond its current level. One significant aspect is the need for forex to cover fees. We are aware that many international students have parents who can support them financially by sending money from Nigeria. Speaking about Nigerians' inclination for imported products, Olayinka stated: The collapse in the value of the naira is a result of both the inclination for imported goods and the incapacity to produce high-quality goods locally. We import raw materials in addition to completed goods. We do not make high-quality things in this country; everything we acquire comes from abroad. “One of the main causes of our population's overseas journey for high-quality education is inadequate and subpar education, which is also severely straining our currency. To strengthen the naira, we need to get some things right,” he said. Additionally, Saidu Abdulrahman, a Bureau De Change (BDC) operator in Sango-Otta, Ogun State, stated that parents whose children are enrolled in foreign universities and are required to pay tuition are the main source of demand for foreign exchange.
Saidu went on to say that bankers refer clients who require foreign exchange quickly to them. “The majority of our clients are parents who pay school fees. The fact that time is primarily against them makes them want to be compensated officially. The banks need more than two or three months to process it. Thus, he said, ”Anyone who is in a hurry will visit the parallel market.
According to a bank employee of a new generation bank, banks are unable to satisfy every demand for school fees. The staff member, who yearned for anonymity due to his lack of authority to speak, claims that the CBN has declared that requests for maintenance and international school fees made via Form A will now be fulfilled in 120 days. “Parents view the parallel market as an alternative to meet their FX needs because they can't wait for banks to process their request,” the speaker stated. Oloto Oladiji, a parent whose child attends Hulls University in the United Kingdom, claimed he is paying for his child's education out of his nose.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
In a landmark move, global trading broker Hantec Markets has become the official trading partner of Fortaleza EC—one of Brazil’s most beloved and historic football clubs. This partnership underscores Hantec Markets’ commitment to aligning with premier sports organizations that share the company’s values of ambition, determination, and excellence.
Binary options trading involves predicting whether an asset's price will rise or fall within a specific timeframe. Unlike traditional investing, more specifically, binary options demand rapid decisions due to fixed expiry times (e.g., 60 seconds to 1 hour). For instance, speculating if EUR/USD will be above 1.0800 in the next five minutes. Success yields a fixed payout, while failure results in the loss of invested capital. Binary indicators distill complex market data—price action, volume, volatility—into actionable signals tailored for short-term trades. Indicators act as a compass, guiding traders to trends, reversals, and optimal entry points, thus enabling traders to detect market shifts for higher-probability decisions.
Baazex is a relatively new broker registered in the United Arab Emirates, with an operating history of between 2 to 5 years. Despite its claims of offering over 1500 trading instruments—from foreign exchange pairs like EUR/USD, GBP/USD, and AUD/JPY, to major stocks including Apple, Meta, Disney, LVMH, and Tesla; as well as commodities (oil, gold, silver, coffee), indices, cryptocurrencies, and futures—investors should be aware of some critical risks.
Founded in 2014, Olymp Trade has been operating for over a decade, expanding its services and user base considerably, now offering focused trading in fixed-time trades (previously known as binary options in some regions) and Forex. Specifically, Olymp Trade operates two trading modes: fixed-time trades and forex mode. Fixed-time trades refer to trades with predetermined expiration times, where traders predict market movement directions. Payouts typically range from 70-90% of the investment amount. Forex Mode is a more traditional forex trading approach with variable leverage (up to 1:500 for experienced traders). At the same time, it allows for more sophisticated trading strategies with customisable take-profit and stop-loss orders.