Saturday, January 16

Tag: Foreign Exchange

Nigeria Running Out Of FOREX – John Campbell, Ex-US Ambassador
Business

Nigeria Running Out Of FOREX – John Campbell, Ex-US Ambassador

A former United States Ambassador to Nigeria, John Campbell, says Nigeria is experiencing a shortage of Foreign Exchange due to the fall in international oil prices. He said the dip in oil prices occasioned by the coronavirus pandemic has had a negative effect on the Federal Government’s revenue and its access to US dollars through oil exports. This was contained in a piece by Campbell published on the website of the Council on Foreign Relations, a US nonprofit thinktank. The PUNCH reports that oil closed at about $60 per barrel in December 2019 but has since plunged to about $25 per barrel in May 2020. The former American envoy to Nigeria said, “Driven in part by the need for dollars, the government devalued the Nigerian currency, the naira, to 360 to the U.S. dollar, down...
CBN Resumes Dollar Sales for SMEs, School Fees
News

CBN Resumes Dollar Sales for SMEs, School Fees

In view of the gradual easing of the COVID-19 lockdown both globally and in Nigeria, the Central Bank of Nigeria (CBN) says it has resumed provision of foreign exchange to all commercial banks for onward sales to parents wishing to pay schools fees and SMEs wishing to make essential imports needed to revamp economic activities across the country. In a statement released this afternoon, the apex bank said it is resuming the provision of over US$100 million per week for both categories and has also made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels, and other designated retail uses, as soon as international flights resume. The bank says there is no need for panic by any end-user that could necessitate ...
N380 forex rate is currency adjustment not devaluation – Emefiele
News

N380 forex rate is currency adjustment not devaluation – Emefiele

The Governor of Central Bank of Nigeria, Godwin Emefiele has made a clarification on the decision to peg the exchange rate of the Naira at N380 to a dollar.   Emefiele stated that the recent jump in foreign exchange rate was currency adjustment and not devaluation of Naira.   Speaking at an extraordinary bankers committee meeting comprising banks’ chief executive officers and CBN directors in Lagos, the CBN Governor said;   The Central Bank of Nigeria has the responsibility to see to the adjustment in the currency; what you have seen is an adjustment in currency and we have been accused that we have a hand, we don’t have a hand, Emefiele said. We allow the I&E window, which is the dominant market to dictate the exchange rate in the market. At this t...
Mompha Hid N32.9b Transactions from Government for 25 Months – EFCC
News

Mompha Hid N32.9b Transactions from Government for 25 Months – EFCC

At the resumed trial of Dubai-based Nigerian man Ismaila Mustapha a.k.a Mompha on Wednesday January 15, it was alleged that he hid N32.9billion transactions from the Special Control Unit Against Money Laundering (SCUML) for 25 months. EFCC accused the defendant of procuring Ismalob Global Investment Ltd. and retaining in its account, an aggregate sum of N32.9 billion between 2015 and 2018 between December 14, 2015 and January 25, 2018. Prosecution witness and an official of the Special Control Unit Against Money Laundering (SCUML),  Mr. Matthew Enu-Obun told Justice Mohammad Liman that they had no record of the transaction as it was hidden and not reported. According to the EFCC, Mompha who is not a financial institution or an authorised foreign exchange dealer, negotiated for...
Finance Bill: New Tax Regime To Take Effect From Jan 2 – FG
Politics

Finance Bill: New Tax Regime To Take Effect From Jan 2 – FG

The much-debated and anticipated new tax regime expected to fund the 2020 budget and restructure tax administration in Nigeria will take effect from the 2nd of January next year. According to Punch, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, in a panel session at the PwC Executive Session on Finance Bill and Tax Strategy, the bill would be revised yearly as the Federal Government is planning to grow the ratio of revenue to Gross Domestic Product (GDP) from 6% to 15% by 2023, with a greater percentage of revenue coming from non-oil sources. The minister disclosed that the long-term goal of the bill is to stabilize the Nigerian economy, reducing the reliance of the foreign exchange earned from oil receipts. The government plans to engage stakeholders a...
IMF Faults Forex Restrictions On 43 Items As Hurting Investments
News

IMF Faults Forex Restrictions On 43 Items As Hurting Investments

The foreign exchange restrictions placed on 43 items by the Central Bank of Nigeria (CBN) on Tuesday drew criticism from the International Monetary Fund (IMF). The policy is holding back Foreign Direct Investments (FDIs) into the local economy, IMF’s Divisional Chief, Research Department, Oya Celasun, told a news conference on the World Economic Outlook at the World Bank/IMF Annual Meetings in Washington D.C. Besides, the IMF chief said Nigeria requires a tight monetary policy and the unification of its exchange rates to achieve the desired growth. His position contradicted that of CBN Governor Godwin Emefiele who had always insisted that the apex bank acted in the best interest of the local economy. He said the decision to restrict forex access and shut the official foreig...
“Why I Ordered CBN To Stop Forex For Food Import” -Buhari
Politics

“Why I Ordered CBN To Stop Forex For Food Import” -Buhari

President Muhammadu Buhari says the directive to the Central Bank of Nigeria to stop providing foreign exchange for food importation was to improve agricultural production and attain full food security. Malam Garba Shehu, the President’s spokesman in a statement, said Buhari stated this when he hosted All Progressives Congress (APC) governors to Eid-el-Kabir lunch at his country home in Daura, Katsina state on Tuesday. According to the president, the foreign reserve will be used strictly for diversification of the economy and not for encouraging more dependence on foreign food. “Don’t give a cent to anybody to import food into the country,’’ he said. The President noted that some states like Kebbi, Ogun, Lagos, Jigawa, Ebonyi and Kano had taken advantage of the Federal Gove...
Oil Discovery Exposed Nigeria’s Economy To Vulnerability – Emefiele
Uncategorized

Oil Discovery Exposed Nigeria’s Economy To Vulnerability – Emefiele

The Governor, Central Bank of Nigeria, Mr Godwin Emefiele, has stated that oil discovery exposed Nigeria’s economy to vulnerability. According to the CBN boss, the increasing reliance on crude oil revenues have led to a severe downturn in the agriculture and manufacturing sectors, and also exposed the economy to vulnerabilities that normally accompanied an increased dependence on a single commodity for survival. Emefiele who disclosed that oil discovery exposed Nigeria’s economy to vulnerability, further revealed in his economic blueprint for the economy for the next five years that if Nigeria had maintained its market dominance in the palm oil industry, which stood at 40 per cent in the 70s, the country would be earning above $20bn annually from the cultivation and processing of pa...
Curvy Women Unveiled as New Tourist Attraction in Uganda
News

Curvy Women Unveiled as New Tourist Attraction in Uganda

Sexy and curvy women have been unveiled as a new tourist attraction in Uganda by the State Minister for Tourism, Kiwanda Godfrey. Unveiling the initiative in Kampala on Wednesday, the Minister disclosed that a beauty pageant dubbed ‘Miss Curvy Uganda’ had been launched to select sexy curvaceous women and the finalists will be selected in June. The statement, which has since caused controversy, was made while launching an event named “Miss Curvy” where ‘sexy curvaceous women’ in the country will compete for a prize. The minister said: “We have naturally endowed nice looking women that are amazing to look at. Why don’t we use these people as a strategy to promote our tourism industry? If you see a Munyankole woman with curves, there is a story behind that…It will be a beautiful...
South African Pension Fund Raises Stake in MTN to 23.6%
News

South African Pension Fund Raises Stake in MTN to 23.6%

A South African state-owned pension fund has raised its stake in mobile phone operator MTN Group to 23.6 per cent, regulatory filings showed on Wednesday. This is a bet on the company in the middle of 10.1 billion dollars dispute with Nigeria. The Public Investment Corporation had a stake of around 15 per cent in the company before the transaction. The corporation has more than two trillion rand (143.22 billion dollars) of South African government civil servants’ pensions under its custody. The purchase price was not disclosed but shares in MTN have been battered since it disclosed two separate disputes with Nigerian authorities. Nigeria’s central bank on Aug. 29 ordered MTN and its lenders to bring 8.1 billion back into Nigeria that it alleged the company sent abroad in...
Cost Of Inviting Foreign-based Eagles Worries NFF
Sport

Cost Of Inviting Foreign-based Eagles Worries NFF

Nigeria Football Federation (NFF) top shots are getting worried by the day with the high cost of inviting players from overseas clubs for Super Eagles, and steps are set to be introduced to correct the excesses. Eagles It was gathered that one of the measures aimed at reducing the amount of money the NFF spends on players invited to the national team is to cut down on the number of those called up from abroad. This is sequel to an observation that the soccer body has to shell huge amounts in foreign exchange to offset flight tickets of the invited players, apart from what is spent on their allowances and bonuses. In a bid to reduce expenses and bills the NFF have to contend with for national team matches, sources at The Glasshouse hinted that Eagles’ coach, Gernot Rohr may be ...
$8.1bn: Senate Clears Us—MTN
News

$8.1bn: Senate Clears Us—MTN

Telecommunication firm MTN, yesterday, refuted claims by Central Bank of Nigeria (CBN) that it illegally repatriated $8.1billion from its Nigerian operations to offshore investors, in collusion with four Nigerian banks. CBN said two days ago that MTN repatriation violated its rule that required such transaction be done with regular Certificates of Capital Importation (CCIs) issued by the apex bank. The apex bank further claimed MTN did the repatriation after illegally converting shareholders’ loan of $399, 594,146 to preference shares. But in a statement by Mr Funso Aina, MTN’s Corporate Affairs Manager, the firm stated: “MTN Nigeria strongly refutes these allegations and claims. No dividends have been declared or paid by MTN Nigeria other than pursuant to CCIs issued by our b...
CBN Infuse $210m Into Foreign Exchange Market
News

CBN Infuse $210m Into Foreign Exchange Market

210 million dollars has been injected into the Inter-bank Foreign Exchange Market by the Central Bank of Nigeria (CBN) to meet customers’ requests in various segments of the market. This was disclosed by the CBN Acting Director of Corporate Communications, Mr Isaac Okoroafor in a statement on today. He said that 100 million dollars was offered to authorized dealers in the wholesale segment of the market. Small and Medium Enterprises (SMEs) also got 55 million dollars, while customers who require foreign exchange for tuition fees, medical payments and Basic Travel Allowance (BTA) were allocated 55 million dollars. Okoroafor assured that the bank would keep striving to intervene in the foreign market as it follows its quest to sustain liquidity in the market and maintain stabilit...
Illegal Dollar Evacuation To Dubai Threatens Naira Stability – Gwadabe
News

Illegal Dollar Evacuation To Dubai Threatens Naira Stability – Gwadabe

Alhaji Aminu Gwadabe, the President of Association of Bureaux De Change Operators of Nigeria (ABCON), says consistent evacuation of dollars illegally from Nigeria to Dubai is a threat to stability of the naira. Gwadabe made the observation in an interview with the News Agency of Nigeria (NAN) in Lagos on Monday. He said that currency speculators would stop at nothing to make nonsense of the gains the naira had made against the dollar at the foreign exchange market in Nigeria. According to him, huge sums of dollars go through the nation’s boarders illegally, creating artificial dollar scarcity in Nigeria. The ABCON chief said that: “Hawala activities, where the naira is traded abroad and create frivolous demand for the dollar is still a threat to naira stability.” The financi...
Economist Urge Fed Govt To Fix Oil Sector To Curtail High Demand For Forex
News

Economist Urge Fed Govt To Fix Oil Sector To Curtail High Demand For Forex

An Economist, Mr Titus Okuroumu, has appealed to the Federal Government to urgently fix the challenges in the oil and gas sector to curtail high demand for Foreign Exchange (FOREX). Okuroumu, former Director in the Central Bank of Nigeria (CBN) made the suggestion while speaking with the News Agency of Nigeria on Tuesday in Lagos. He said that the quick disbursement of the capital vote for the resuscitation of the oil and gas sector and it value chain would reduce the economic hardship in the country. According to him, addressing the oil and gas sector is necessary to solve most of the economic difficulties, especially the demand for foreign exchange. “We are all aware that the demand for foreign exchange in the oil and gas sector is huge and if government can reduce it drastic...
Forex: Central Bank Boosts Market With $413.5m
News

Forex: Central Bank Boosts Market With $413.5m

The Central Bank of Nigeria (CBN) has intervened in the inter-bank Foreign Exchange market to the tune of $413.5 million, further underscoring its resolve to guarantee liquidity in the market as well as shore up the international value of the naira. Giving a breakdown of the Bank’s latest round of intervention on Monday, the CBN Acting Director in charge of Corporate Communications, Mr. Isaac Okorafor, disclosed that the regulator offered the sum of $100 million to dealers in the wholesale window, while the Small and Medium Enterprises (SMEs) window was allocated a total of $28 million. The invisibles segment was allocated the sum of $25.5 million to meet the needs of those requiring forex for Business/Personal Travel Allowances, school tuition, medicals, etc. According to Okorafor, ...
Hajj: CSO Seeks N200/$1 Exchange Rate Concession
News

Hajj: CSO Seeks N200/$1 Exchange Rate Concession

A Civil Society Organisation, an Independent Hajj Reporters, on Thursday appealed to the Federal Government to grant an exchange rate concession of N200 to a dollar to 2017 intending pilgrims. The group made the appeal in a statement by its National Coordinator, Ibrahim Muhammed, and Publicity Secretary, Abubakar Mahmoud in Abuja. It said such gesture would lower the financial burden of the exercise on the intending pilgrims. The News Agency of Nigeria (NAN) reports that the 2017 hajj fare is between N1.48 million and N1.58 million per pilgrim depending on their state, including $800 the Basic Travelling Allowance. In the 2016 hajj operations, according to the state, it was between N1 million and N1.1 million per pilgrim. The National Hajj Commission of Nigeria (NAHCON), whi...
Central Bank Opens Forex Window For Airlines, Oil Marketers
News

Central Bank Opens Forex Window For Airlines, Oil Marketers

The Central Bank of Nigeria (CBN) has announced a special market intervention for airline operators, oil marketers, and agricultural businesses to enable them clear a backlog of foreign exchange obligations. In a notice to lenders issued yesterday, the CBN said it planned to settle the bids through a combination of spot and short-term forward deals. However, the apex bank did not specify the maximum amount of dollars it will sell. “Authorised dealers’ accounts with the central bank will be debited in full for the naira equivalent of the dollar bid amount on a spot basis,” the bank said. It could be recalled that in May; the CBN published a list of 36 items for which importers can source foreign exchange (Forex) from the market excluding operators in the airline, oil, and agro-base...
CBN Unveils 36 Items Approves For Forex
News

CBN Unveils 36 Items Approves For Forex

The Central Bank of Nigeria (CBN) has come out with 36 items considered valid for foreign exchange access. In a circular dated May 17, 2017, signed by the director, Trade and Exchange Department of CBN, W. D. Gotring, the bank said it was in response to the misconception emanating from the recent circular on items valid for forex allocation, stressing that the 41 items remained banned. But stakeholders affected by the policy have reacted to the bank’s decision. Manufacturers Association of Nigeria (MAN) said the concession by CBN for 36 items now included for foreign exchange would further lift the manufacturing sector out of the present economic doldrums. Reacting to CBN’s list of 36 items valid for access to foreign exchange in the foreign exchange market by the apex bank, the MAN pr...
Naira Gains Against Dollar To N375/$
News

Naira Gains Against Dollar To N375/$

The Naira continued to gain against the dollar following the Central Bank of Nigeria (CBN) $457 million intervention on Monday. The local currency on Thursday rose against the U.S dollar to N375 per dollar on the parallel market as the foreign exchange liquidity continued to increase. Investigations revealed that the parallel market rate which most analysts had projected to remain at N385 to a dollar, improved to N375/$. CBN’s Acting Director of Corporate Communications, Isaac Okorafor, had at the weekend reiterated the bank’s commitment to ensuring that there was enough supply of forex to genuine customers in pursuit of rates’ convergence.
Naira Gains, Dollar Crashes At Parallel Market
News

Naira Gains, Dollar Crashes At Parallel Market

- The Naira has gained strength against the American Dollar at parallel market - The local currency however crashed against the Pound but stayed firm against Euro - Nigeria has five rates: the official rate, the black market, a rate for Muslim pilgrims going to Saudi Arabia, a retail rate set by licensed exchange BDC and a rate for foreign school fees The Naira on Wednesday, May 17, continued its growth against the American Dollar at the parallel market. This follows report that the local currency closed the day at N385 to the Dollar, one point stronger than the N386 it closed on Tuesday, May 16. However, the local currency weakened against the Pound Sterling but stayed firm against the Euro at the same segment. It dropped seven points against the Pound to close at N497 a...
Naira Stable At N385/$1
News

Naira Stable At N385/$1

The Central Bank of Nigeria (CBN) yesterday injected $457.3 million into various segments of the foreign exchange market, even as the naira remained stable at N385 per dollar in the parallel market. Meanwhile the CBN also disclosed that the Investors and Exporters (I&E) foreign exchange window has so far attracted $600 million from autonomous sources and from the apex bank. Acting Director, Corporate Communications at the Central Bank of Nigeria, Isaac Okorafor, disclosed these developments saying a breakdown of the $457.3 million offered yesterday indicates that both the spot and forwards segments received a total of $267.3 million while the wholesale segment got $100 million. H said that the SME and invisibles segments comprising of basic travel allowance, tuition fee and...
Naira Strengthens, Gains N2 Against Dollar
News

Naira Strengthens, Gains N2 Against Dollar

The Naira on Thursday gained N2 against the dollar at the parallel market as it was traded at N386 to the dollar, stronger than the N388 it closed on Wednesday. At the same segment, the pound sterling and the Euro closed at N495 and N425, respectively. At the Bureau De Change (BDC), the naira was N362 to the dollar, while the pound sterling and the Euro exchanged for N492 and N423, respectively. The naira was exchanged at N305.6 to the dollar at the interbank. Currency traders said that the weekly offering of foreign exchange to BDCs by the CBN was paying off and restoring stability to the exchange rate. Alhaji Aminu Gwadabe, the President of Association of Bureau de Change Operators of Nigeria (ABCON), said that he expected the naira to continue to appreciate in the coming weeks. Gw...
Toyota Boss Laments Nigeria’s Lowest Vehicle Sales Record In Decades
News

Toyota Boss Laments Nigeria’s Lowest Vehicle Sales Record In Decades

The Managing Director of Toyota Nigeria Limited, Mr. Kunle Ade Ojo, has lamented the poor vehicle sales recorded in the country in the first quarter of the year which fell to an all time low of 2,000 vehicles within the period. Briefing newsmen at their Lekki, Lagos office during their quarterly meeting, the managing director disclosed that the total sales figure of vehicles across the country including all brands stood at 2,000 units when compared to 5,500 vehicles sold within the same period in 2016. He, therefore, forecast that given the way the industry was going, it would be difficult for all the car companies to sell 9,000 vehicle before the end of the year He attributed the poor sales and import figure of vehicles to scarcity of foreign exchange, devaluation of the naira, ...
Oil Rebounds Above $50 As US Stockpile Drops
News

Oil Rebounds Above $50 As US Stockpile Drops

Oil rebounded on Wednesday following a report that the US stockpile dropped to its biggest one-week low this year. The US crude inventories dropped by 5.2 million barrels last week, according to the US Energy Information Administration. This is more than the 1.8 million-barrel predicted by analysts. The Brent crude oil climbed 3 percent to $50.27 per barrel as at 6:15 Nigerian time. While, the US West Texas Intermediate oil surged to $47.44 a barrel. However, analysts have said it is hard to see how this one-off drop in US production would change oil outlook and ease investors’ concerns going forward. “It is difficult to see how the day’s gains last,” said a partner at hedge fund Again Capital in New York, John Kilduff. “US crude oil production is now solidly above 9.3 million ...
CBN Injects $388.66m Into Foreign Exchange Market As FCMB Increases Sales
News

CBN Injects $388.66m Into Foreign Exchange Market As FCMB Increases Sales

The Central Bank of Nigeria (CBN) has released an additional sum of $388.66million to ease pressure on the naira, stimulate business activities and make foreign exchange (Forex) accessible to local operators. Confirming the numbers, the Acting Director, Corporate Communications Department at the CBN, Mr. Isaac Okorafor, disclosed that the sum of $87.885million was for spot sales, while $300.8 million was sold as forwards. Mr. Okorafor further explained that the forwards were sold into three tenors of 30, 45 and 60 days respectively. According to him, the Bank sold $100.95 as 30-day forwards; $110.48 million as 45-day forwards and $99.37 as 60-day forwards. Meanwhile, First City Monument Bank (FCMB) has increased its sale of Forex to all customers and members of the public who play in...
Import Ban On 41 Items Remains In Force – CBN
News

Import Ban On 41 Items Remains In Force – CBN

The Central Bank of Nigeria (CBN) Thursday said it has not reversed the import ban on 41 items that it declared ineligible to receive foreign exchange from the apex bank. The CBN’s clarification followed some news reports Thursday, which erroneously reported the lifting of the ban, citing a CBN document.
Oil Prices Plunge To 5-month Low On Thursday
News

Oil Prices Plunge To 5-month Low On Thursday

Oil prices plummeted to its lowest in five months after data showed the U.S. rising oil production would offset efforts by the OPEC to moderate prices. The global oil prices which started falling on Monday following a report that hedge funds and money managers have started cutting bullish positions, dip lower on Thursday to reach its pre-OPEC consensus level. Since Monday, the WTI has dropped about 9 percent to $45.60, its lowest since November 2016. While the Brent Crude has plunged as much as 8 percent to trade at $48.83, the lowest price level this year. Experts have said the uncertainty surrounding OPEC policy and the continuous rise of the U.S. oil production will continue to weigh on global oil outlook in the medium term. “With the future of OPEC policy unclear, the trend...
CBN Injects $186m As Forex Reserves Beat $30bn
News

CBN Injects $186m As Forex Reserves Beat $30bn

Following Tuesday’s assurances by Godwin Emefiele, the CBN says it will continue to intervene in the foreign exchange market, as it injected $185.86 million into the retail Secondary Market Intervention Sales (SMIS). Isaac Okorafor, the bank’s acting director in charge of corporate communications, while confirming the auction sale, disclosed that out of the auctioned amount, only $3.14million was sold as spots, while the sum of $182.72million was sold as forwards. Okorafor further explained that the overall picture of the inter-bank forex market was that of optimism, going by the level of access now being enjoyed by different categories of customers in both the wholesale and retail segments of the market. Emefiele, while assuring Nigerians of the imminent end of the current recess...
Nigeria Breweries To Intensify Local Raw Materials Sourcing For Improved Earning
News

Nigeria Breweries To Intensify Local Raw Materials Sourcing For Improved Earning

To mitigate foreign exchange challenges encountered during the 2016 financial year, Nigerian Breweries Plc, has announced plans to intensify its local sourcing of raw materials as well as seek further improvements in its sorghum value-chain. Besides, the brewer also noted that it would be consolidating its earnings and profitability through improved market penetration with its innovative products, adding that it would carefully assess its price adjustment strategy in ensuring a balance in the management of input costs and price consumers are willing to pay for its products. At a current sourcing level of about 50 per cent of its raw materials locally, the brewer is optimistic of achieving its 60 per cent target before 2020. Speaking to journalists ahead of the firm’s yearly general m...
Naira Extends Gains As Dollar Glut Hits Market
News

Naira Extends Gains As Dollar Glut Hits Market

The naira sustained its momentum on the parallel market yesterday, appreciating significantly by N20 in one day to close at N380 to the dollar, stronger than N400 to the greenback at the close of trading the day before. Similarly, the local currency firmed up on the Bureau de Change (BDC) segment of the market yesterday, trading at between N376 and N378 to the dollar in Lagos, Abuja and Kano. The gains were largely influenced by increased dollar liquidity in the economy, as the Central Bank of Nigeria (CBN) sustains its intervention in the foreign exchange (FX) market. The CBN pumped a total of $380 million into the market between Tuesday and Wednesday this week. It also simplified the documentation process for small and medium sized businesses to enable them import eligible it...
Forex Instability Downs Smartphone Sales In 2016- Report
News

Forex Instability Downs Smartphone Sales In 2016- Report

A new report by the International Data Corporation (IDC), a global research and consulting services firm, has shown that smartphone sales are Nigeria and other African countries, no thanks to the foreign exchange fluctuations. Nigeria is particularly hit more as dollar exchanges at far more rate against the naira and the country accounts for more sales than any other African country. The report said 215.33 million mobile phones were shipped into Africa in 2016, however, feature phones, with 119.97 million units had more units than smartphones (I hope you know that feature phones are different from smartphones), although smartphone brands like Samsung, Tecno, Itel and Infinix led the smartphone market in 2016. Samsung led with 27% market share dropping by 2.5%. Second placed brand ...
Naira Gains On Fresh Dollar Supply, Now 390/dollar
News

Naira Gains On Fresh Dollar Supply, Now 390/dollar

The naira recorded a gain against the United States dollar on the parallel market on Tuesday, a day after the Central Bank of Nigeria injected $240m into the foreign exchange market. The local unit rose from 395/dollar on Monday to 390/dollar on Tuesday as the new forex supply weighed on the market. The CBN had on Monday released the sum of $90m to meet requests for invisible such as business travel and personal travel allowances, medical and school fees. The apex bank also offered a total of $150m to authorised foreign exchange dealers in the interbank wholesale auction window same day. The development brought to $240m the total amount of forex released by the regulator on Monday. The regulator also adjusted the sale day of forex to Bureau De Change operators to Tuesdays on...
CBN Directs Banks To Pay Cash To Forex Users
News

CBN Directs Banks To Pay Cash To Forex Users

The Central Bank of Nigeria on Monday directed all banks to pay cash over-the-counter to desiring foreign exchange customers. The directive, according to the Acting Director, Corporate Communications Department, CBN, Mr. Isaac Okorafor, was issued to further ease the access of customers to foreign exchange. He said that the apex bank had also released the sum of $240m to meet genuine demands from users of foreign exchange. Out of this amount, he stated that the CBN released the sum of $90m to meet requests for invisibles such as business and personal travel allowances, as well as medical and school fees. He added that the balance of $150m was offered to authorised forex dealers in the interbank wholesale auction window. Okorafor also disclosed that the apex bank had adjusted...
Dollar 2 Crash Further As CBN Reiterate Determination To Sustain Forex Liquidity
News

Dollar 2 Crash Further As CBN Reiterate Determination To Sustain Forex Liquidity

The Central Bank of Nigeria on Sunday reiterated its determination to sustain the provision of foreign exchange with a view to ensuring liquidity in the market and enhance accessibility and affordability for genuine end users. The apex bank’s Acting Director, Corporate Communications, Mr. Isaac Okorafor in a statement said the bank wants to disabuse the notion by market speculators that it wouldn’t be able to sustain its forex intervention. He said that the bank would again, early this week, inject more foreign exchange into the market, leading to a further weakening of the dollar. “This is in addition to the further increase in the sale of dollars to the Bureau de change operators from 8,000 dollars to 10,000 dollars per week,’’ he said Okorafor warned commercial banks and o...
Forex Manipulation: EFCC Invites More Senior CBN Officials
News

Forex Manipulation: EFCC Invites More Senior CBN Officials

The Economic and Financial Crimes Commission has invited more senior officials of the Central Bank of Nigeria as part of investigations into an alleged foreign exchange scam and other sharp practices within the apex bank. Reliable sources within the anti - graft agency said the investigators probing the scam believed strongly that the activities of some officials of the bank impacted negatively on the fortunes of the naira and contributed to its drastic slump in recent months. The PUNCH had exclusively reported on Thursday that the EFCC detained and grilled two directors on Wednesday. It was, however, learnt on Thursday that the officials were released late on the same day after writing statements on oath. A reliable source within the agency had earlier assured our reporter that the CBN...
Senate Probes Buhari, Obasanjo, Yar’adua, Jonathan Over N4tr Customs Revenue
News

Senate Probes Buhari, Obasanjo, Yar’adua, Jonathan Over N4tr Customs Revenue

The Senate Committee on Customs, Excise and Tariff has revealed plans to investigate how over N4 trillion was lost due to revenue leakage in the Nigeria Customs Service (NCS). The period under review will cover 2006 and 2016. In the investigation, the Senate committee will look into the tenures of former Presidents Olusegun Obasanjo, Umaru Musa Yar’Adua and Goodluck Jonathan. Also, President Muhammadu Buhari’s government will be probed. The probe is coming amid a yet-to-be resolved face-off between the Senate and the Comptroller-General of Customs, Col. Hameed Ali (retd). The committee has, however, condemned the inability of the technical committee on the implementation of comprehensive import supervision scheme to ensure that the provisions of the Act are followed to the latter. ...
Naira Appreciates To N435/$, As CBN Injects $180m
News

Naira Appreciates To N435/$, As CBN Injects $180m

The Nigerian naira appreciated to 435 per dollar on Monday, as the Central Bank of Nigeria (CBN) pumped a total of $180 million into the foreign exchange market. Vanguard reports that the parallel market exchange rate, which declined to N445 per dollar last week, further dropped to N435 per dollar at the close of business, yesterday, translating to 3.4 per cent appreciation of the naira. The naira appreciation is being driven by decline in demand for dollars occasioned by increase dollar supply by the Central Bank of Nigeria (CBN) .
CBN Pumps $195Million To Boost Forex Market, As Naira Firms Up
News

CBN Pumps $195Million To Boost Forex Market, As Naira Firms Up

​THE Central Bank of Nigeria on Tuesday sustained the supply of foreign exchange to the market by releasing $195 million. The CBN Acting Director, Corporate Communications, Isaac Okorafor, gave a breakdown of the release. Okorafor said of the amount $150 million was released through wholesale auction. He said that the remaining $45 million was for medicals, tuition, Personal and Business Travel Allowance. Okorafor said the Bank acted promptly and proactively in line with its promise to keep the market liquid enough to meet the needs of genuine requests. He said that banks were becoming saturated with foreign exchange, as most of them were now able to meet demands for foreign exchange within the stipulated time frame. Okoroafor said: “As you can see all the pent-up demand fo...
CBN Sells $230 Million To 16 Banks, Boosts Financial Market
News

CBN Sells $230 Million To 16 Banks, Boosts Financial Market

Sixteen banks shared in the $230 million foreign exchange (forex) mart by the Central Bank of Nigeria through the forward contract agreement. This forms part of the fulfillment of the apex bank’s pledge to ensure liquidity in the interbank market under the latest policy announced last week. Of the 16 financial institutions, 13 are commercial banks, one is a development financing establishment, while two are merchant banks. An analysis of the auction’s participants showed that nine commercial banks and one merchant got $162.85 million at bid rates ranging from N325/$ to N360/$, while six others got $58.52 million at bid rates between N315/$ and N320/$. However, the first 10 banks with a total request of $162.85 million in the forwards contract have the maturity date of March 27,...
Lauretta Onochie Blasts Dele Momodu For Crediting Osinbajo
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Lauretta Onochie Blasts Dele Momodu For Crediting Osinbajo

Personal Assistant to President Buhari on social media, Lauretta Onochie, has lampooned Dele Momodu for crediting Acting President Yemi Osinbajo with the improvements in foreign exchange and engagement with the public. Momodu had praised Osinbajo for charting a new path for the country in his weekly column tagged "Pendulum". Onochie, however, disagreed with him, saying "its sad Dele Momodu is clever by half" On her twitter handle, Lauretta wrote "With a mindset like this, it's not hard to work out that Dele Momodu is too clever by half. If he does not understand "Team", how can he understand "Team Spirit"? "The President and the Acting President have a great understanding of what it means to be a team. They respect, consult and collaborate with each other. Sync". Dele Momodu...
Naira Gains On Parallel Market For Four Consecutive Days, Now N480/$
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Naira Gains On Parallel Market For Four Consecutive Days, Now N480/$

The Naira extends its gain against the US dollar on Thursday for the fourth consecutive day. The local currency gained N21 from N501 it traded on Wednesday to close at N480 to a dollar. Bringing its total gain in a week to N40 after reaching all-time low of N520 on Monday. On Monday, the CBN had announced a new forex policy actions to cater for categories previously excluded from the official forex rate and increase forex liquidity in the market. The apex bank has since sold $370 million in an auction, forward contracts, and also appropriated a weekly $20 million to commercial banks at N375 to a dollar for school fees payment, medical bills and personal travel allowance. According to the traders, the buy rate strengthened to N470 per dollar, from N490/$ it closed on Wednesday. ...
Naira Improves On Parallel Market, Sells At N501/$
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Naira Improves On Parallel Market, Sells At N501/$

The new foreign exchange policy introduced by the Central Bank of Nigeria strengthens the Naira on the parallel market on Wednesday. The local currency which traded N512 to a Dollar on Tuesday, gained N11 to close at N501 against the US dollar, and stronger than N520 it traded on Monday. Traders also noted that the buy rate of the greenback improved below N490 to the dollar as currency hoarders who had held on to the dollar for several weeks rushed to sell off the currency following the renewed confidence in the CBN’s ability to meet forex demand. Also, global ratings agency, Fitch Ratings said on Wednesday that the new forex policy announced by the CBN would ease forex scarcity and banks’ pressure. According to the statement released by Fitch Ratings, the most important part o...
Naira Records Gain, Closes At 512/dollar On Tuesday
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Naira Records Gain, Closes At 512/dollar On Tuesday

The naira recorded slight gain on Tuesday and closed at 512 against the United States dollar on the parallel market, a day after the Central Bank of Nigeria introduced a new foreign exchange policy action. The CBN had on Monday announced its decision to begin sale of $1m weekly to each of the country’s 21 commercial banks at a rate of 375 naira to clear a backlog of demand for retail users and try to narrow the premium between the official and black market rates. The decision was announced hours after the naira tumbled to 520/dollar on the parallel market as scarcity of the greenback continued to weigh on the exchange rate.
24 Hours After New Policy, CBN Injects $371m Into Forex Market
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24 Hours After New Policy, CBN Injects $371m Into Forex Market

About 24 hours after The Central Bank of Nigeria (CBN) announced fresh policy actions in the foreign exchange market, the bank has pumped $370.9 million into the forex market. On Tuesday, the apex bank carried out wholesale interventions in the interbank forex market by trading a total of $370,810,810.79 to 23 banks “to meet the visible and invisible requests of customers”. A source at the CBN said the qualified bids ranged from N315 to N360 per dollar, adding that seven banks received full allotments of their respective bids valued at $37,500,000 each. “Other banks received allotments ranging from $46, 512.50 to $15,578,081.51,” the source added. Isaac Okorafor, acting director, CBN corporate communications department, said the bank’s inter mediation in the forex market was th...
Revenue Generation: FG May Revise Restriction On 41 Items
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Revenue Generation: FG May Revise Restriction On 41 Items

A boost in revenue gen­eration by the Nigeria Customs Service may be expected this year as indica­tion has emerged that the fed­eral government may revise the foreign exchange restric­tion placed on importation of 41 items into the country. Customs had attributed the restriction among other factors to the reason it could not meet its revenue target in 2016. Zonal Coordinator, Zone `A’ of NCS, Assistant Comptroller-General Monday Abueh, dis­closed that the Federal Govern­ment may reverse the foreign exchange restriction order. Abueh disclosed this in Ibadan during his familiarisa­tion tour of Oyo/Osun Com­mands as part of his visits to Customs formations under his jurisdiction. The Central Bank of Nige­ria (CBN) had on July, 2015, restricted 41 items, including v...
CBN Releases $2.8bn To Manufacturers, Others In Two Months
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CBN Releases $2.8bn To Manufacturers, Others In Two Months

The Central Bank of Nigeria on Thursday said it had disbursed the sum of $2.83bn worth of foreign exchange for the importation of various types of equipment in the real sector of the economy. The amount was made available to the manufacturers to enable them source for raw materials and spare parts to boost production capacity. The Acting Director, Corporate Communications Department, CBN, Mr Isaac Okoroafor, who confirmed the development said the amount was released in the last two months covering December 2016 and January 2017. Okorafor explained that manufacturing, raw material, and agriculture among others got the highest amount, adding that this was done by the apex bank as part of its measures to create jobs, reduce the level of poverty and ensure inclusive growth in the econ...
CBN To Sell Dollars In Special Auction To Clear Backlogs
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CBN To Sell Dollars In Special Auction To Clear Backlogs

The Central Bank of Nigeria (CBN) has asked banks to bid in a special currency auction to clear a backlog of dollar obligations that businesses owe, traders said on Wednesday. The central bank asked commercial lenders to submit backlog dollar demand from fuel importers, airlines, raw-materials producers, and makers of agricultural chemicals and machinery for manufacturers. In a notice to commercial lenders, the central bank said it would hold a retail foreign exchange auction on Wednesday to sell two- to five-month dollar forwards. The amount of dollars to be sold was unspecified, Reuters said. Last December, the central bank sold around $1 billion on the forward market to clear a similar backlog of dollar obligations, in an effort to support production in Africa’s biggest economy...
Dangote Floats $100 Million Truck Assembly Plants in Lagos
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Dangote Floats $100 Million Truck Assembly Plants in Lagos

Dangote Group of Companies has established a $100million truck assembly plant in Lagos as part of its efforts toward boosting foreign exchange and job creation in the country. The group said in a statement on Sunday in Lagos that the plant was floated by the group in partnership with National Heavy Duty Truck Group Company Limited, (SINOTRUK), a Chinese firm. It quoted Mr Anthony Chiejina, the Chief Corporate Communication Officer, Dangote Group, as saying that the plant, located in Ikeja, has the capacity to produce 10,000 trucks annually. He stated the before now, Dangote had been spending heavily on importing trucks to distribute its products both locally and across African countries. Chiejina said the conglomerate owned 60 per cent stake in the assembly plant while SINOTRUK h...