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  • Nigeria to Sign Digital RMB Deal with China to Cut Dollar Reliance, Says Tegbe

    Nigeria to Sign Digital RMB Deal with China to Cut Dollar Reliance, Says Tegbe

    Nigeria is set to sign a landmark agreement with China to enable direct conversion of the naira to the Chinese Yuan through the Digital Renminbi (RMB).

    Joseph Tegbe, Director-General of the Nigeria-China Strategic Partnership (NCSP), made this known during a recent Digital Asset Markets Strategy Masterclass in Lagos.

    Tegbe described the deal as a strategic move to reduce Nigeria’s reliance on the U.S. dollar and transition the country’s trade relationship with China into a mutually beneficial development partnership.

    “This agreement marks a significant step toward strengthening economic ties and fostering sustainable growth,” he said.

    The NCSP boss also said Nigeria has secured over $30 billion in investment commitments and 300 expressions of interest from Chinese companies in the last five months, signalling robust confidence in Nigeria’s economic potential.

    Tegbe stressed the importance of leveraging Chinese technology, particularly in digital asset markets, to drive knowledge transfer and support the globalisation of Nigeria’s capital market.

    He listed the NCSP’s broader objectives to include accelerating infrastructure development, scaling Chinese investments, enhancing trade, promoting transparency, and fostering cultural exchange between the two nations.

    Nicholas Okoye, convener of the masterclass and a global investment advisor, highlighted the transformative potential of digital assets in Nigeria and across Africa.

    “The fourth industrial revolution has ushered in a digital transformation that will redefine wealth creation,” Okoye said.

    “Adopting digital asset markets, including cryptocurrencies and the tokenisation of traditional assets, will be a game-changer for Nigeria’s capital markets and Africa’s economic growth.”

    Okoye added that digital assets offer Africans an unprecedented opportunity to build wealth, regardless of location or profession, and could provide a more accurate reflection of Nigeria and Africa’s true economic potential.

  • I&E Window: Exchange Rate Reportedly Sells For N815/$1

    I&E Window: Exchange Rate Reportedly Sells For N815/$1

    The exchange rate between the naira and dollar sold for an intra-day high of N815/$1 at the official Investor & Exporter Window on Wednesday, June 21, 2023.

    The N815/$1 rate is the highest rate traded for the dollar on the official market since records tracking started in 2018.

    The exchange rate however closed at N763.17/$ at the close of business on Wednesday depreciating from N756.61/$1 recorded a day earlier.

    Meanwhile, the disparity between the black market and the official exchange rate market closed again on Wednesday with the official rates closing at N763/$1.

    The black market rate sold for between N760-N770/$1 according to Nairametrics..

    Recall that on Monday the official and parallel market rates closed at N770.38, a rare exchange rate parity.

  • Naira Falls To N770/Dollar At Official Market

    Naira Falls To N770/Dollar At Official Market

    The Naira on Monday, June 19, closed at N770 per dollar at the investors and exporters (I&E) window.

    FMDQ Securities Exchange Limited said Monday’s closing rate represents a 16.1 percent depreciation from the N663 recorded on the last trading day (Friday).

    Though the Naira is yet to gain stability following changes implemented by the federal government in Nigeria’s foreign exchange (FX) market, data on FMDQ shows that investors traded about $78 million deals on the I&E window.

  • CBN Devalues Naira To 630/$1 48hrs Into Tinubu’s Regime

    CBN Devalues Naira To 630/$1 48hrs Into Tinubu’s Regime

    The Central Bank of Nigeria (CBN) has devalued the Naira to N631 to the dollar from N461.6 it sold at the Importers and Exporters (I&E) window the previous day.

    The devaluation came 48 hours after President Bola Ahmed Tinubu announced the plans of the federal government to unify the country’s exchange rate to stimulate the economy.

    In his inaugural speech, minutes after he was inaugurated as the 16th president of the country, Tinubu said, “Monetary policy needs a thorough house cleaning. The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.”

    There has been a wide margin between the I&E window and the parallel market, a situation that experts say encouraged round-tripping with Bureau de Change operators.

    The situation has seen the CBN devise several measures to check the practice as well as completely stop the sale of forex to BDCs.

  • Naira Redesign: Dollar Will Fall to N200 – EFCC Boss

    Naira Redesign: Dollar Will Fall to N200 – EFCC Boss

    The Chairman of the Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa, has anticipated a drop in the value of United States dollars.

    Bawa expressed hope that the US dollar might drop to N200 following the naira’s redesign.

    The EFCC boss disclosed this in an interview with Deutsche Welle, Hausa service on Wednesday.

    He commended President Muhammadu Buhari for approving the redesigning of the naira.

    Bawa said the naira should be redesigned every eight years.

    He said, “The law says the redesigning of Naira notes should be done every eight years, but we spent 20 years without any changes on them.

    “And that resulted in 85 per cent of money are in circulation not in banks; when CBN came up with this redesigning, dollar moved to N880 and later dropped to N680 or thereabouts.

    “So you see with this redesigning, dollar may massively fall, who knows probably to N200.”

    In the last few weeks, the naira has been falling against the world’s major currencies.

    The naira staged a comeback, recording gains on the parallel market as it exchanged for about N730 to a dollar last week.

  • JUST IN: Dollar Crashes Further Against Naira

    JUST IN: Dollar Crashes Further Against Naira

    The United State Dollar on Friday continued it’s free fall against the Naira which is now exchanging for 704 Naira to a Dollar.

    This is a further decline from the 740 Naira it was exchanged for on Thursday.

    It was earlier reported on Thursday that
    the Naira had appreciated significantly against the US dollar at the parallel market.

    Bureaux De Change (BDC) operators who spoke to ECONOMIC CONFIDENTIAL in Abuja on Friday night said they now sell the Naira at N704 to a Dollar.

    This is a further loss of 36 naira on the value of the US Dollar compared to the Naira.

    Meanwhile, the Central Bank of Nigeria (CBN) has consistently maintained that the parallel market represents less than one percent of foreign exchange (FX) transactions and should never be used to determine the naira’s value.

    An exchange rate of N460 to the dollar was the highest rate recorded within Thursday’s trading before it settled at N446.10.

    The exchange rate between the Naira and the US dollar on the FMDQ Security Exchange the official forex trading portal showed that the Naira opened at ₦444.00 per dollar on Wednesday, November 9, 2022, and closed at ₦445.67 per $1 on Wednesday, November 9, 2022.

    The Naira has in the last 72 hours began a quick rise to the top against the dollar at a time the CBN is talking about redesigning the currency.

  • EFCC Threatens to Arrest dollar Hoarders as Naira Continues to fall

    EFCC Threatens to Arrest dollar Hoarders as Naira Continues to fall

    The Economic and Financial Crimes Commission (EFCC) has threatened to arrest Nigerians hoarding dollars and other foreign currency.

    The Chairman of the anti-graft agency, Abdulrasheed Bawa made the threat at a meeting with representatives of Bureau De Change operators in Abuja on Friday, August 5.

    This follows the anti-graft agency’s ongoing efforts to check rising cases of foreign exchange speculation, which had brought pressure on the value of the naira.

    “The Commission has intelligence linking some persons and organisations to hoarding foreign currencies, especially the United States dollars, in key commercial cities of Kano, Lagos, Port Harcourt, Enugu and Calabar.

    We warn those involved to desist or risk arrest as a major offensive against the speculators is underway,” he said.

    The EFCC boss warned people who are in the habit of hoarding forex to desist or risk arrest as a major offensive against the speculators was underway.

    He noted that the meeting was called to fashion out a collaborative stakeholders’ response to brazen foreign exchange speculation, especially at the parallel market, which was hurting the country’s monetary policy by instigating a decline in the value of the naira.

    The anti-graft agency noted that similar meetings are planned for Bureau de Change operators in other major commercial cities across the country, including key players, regulators and operators within the Nigerian financial sector.

    Since the beginning of August, the dollar has continued to rise in Nigeria’s black market. Last week, the naira traded at N710 to the dollar in the parallel market. This forced the EFCC to raid some forex markets in Abuja, which saw the currency return to its pre-speculated value.

    A few days after security personnel stormed a Bureaux De Change (BDC) hub in Abuja, the naira continued to strengthen on the black-market, moving to N660 per dollar.

  • CBN Clarifies Stand on Using Naira To Buy US Dollar

    CBN Clarifies Stand on Using Naira To Buy US Dollar

    The Central Bank of Nigeria (CBN) has clarified the statement made by the Governor, Godwin Emefiele, at Tuesday’s post-Monetary Policy Committee (MPC) meeting briefing, warning bank customers against converting the naira to foreign exchange, for electioneering purposes.

    Director, Corporate Communications Department, CBN, Mr. Osita Nwanisobi, made the clarification in a chat with newsmen in Lagos, following what he described as attempts by persons to deliberately misrepresent the import of Emefiele’s caution on electioneering spending by the political class.

    According to Nwanisobi, the warning by the CBN Governor was to those who sought to convert the Naira from their accounts into foreign exchange for election campaigns and not those who seek to exchange the currency for legitimate purposes such as payment for tuition and other personal expenses.

    Reiterating the apex bank’s position, he said the CBN also frowned at the conduct of unauthorized movement of funds within and outside the country and would use tools at its disposal to check the movement of illicit funds.

    While maintaining that the CBN in line with its mandate, had discretionary power to prevent persons from conducting unauthorized transactions, Nwanisobi said the CBN was within its statutory limits to mop up the excess liquidity in the vaults of the institutions it regulates, so they do not get involved in speculative activities.

    He, therefore, urged bank customers not to get involved in unauthorized movement of funds for currency conversion in order not to fall foul of the extant laws of the land. Nwanisobi also admonished Nigerians to be more patriotic as it relates to the Naira, noting that it is the duty of every citizen to support the CBN in preserving the intranational value of the Naira.

  • Naira Depreciates further to N614/1$ at Parallel Market

    Naira Depreciates further to N614/1$ at Parallel Market

    The Nigerian naira has dropped to N614 against the dollar at the parallel section of the foreign exchange market.

    The figure signifies a depreciation of N7 or 1.2 percent compared to the N607 it traded last two weeks.

    Bureaux De Change operators (BDCs), popularly known as ‘abokis’, who spoke to TheCable in Lagos on Tuesday, said they purchase the greenback at N608/$, make a gain of N6, and then sell at N614.

    At the official market, the naira also depreciated by 0.21 percent to close at N421/$ on Monday, according to information obtained from FMDQ OTC Securities Exchange — a platform that oversees official foreign-exchange trading.

    Nigeria operates multiple exchange rate windows ranging from the importers and exporters window (I&E) window, where forex is traded between exporters, investors, and purchasers of forex, the SMEIS window where forex is sold to importers, and others.

    International organisations such as the World Bank and the International Monetary Fund (IMF) have constantly advised the Central Bank of Nigeria (CBN) to unify the official and parallel market exchange rates.

    But Godwin Emefiele, the CBN governor, had said that despite advice offered by IMF and the World Bank, developing economies such as Nigeria had the liberty of adopting “homegrown solutions” to their economic problems.

    According to him, the managed floating exchange rate, which allows the CBN to intervene in the market when there is a supply shock, would be in place as long as supply exceeds demand.

    “They want us to free the exchange rate. And you do know that this has some impacts on the exchange rate itself,” he had said.

    “When you allow that to happen, you will have an uncontrollable spiral on the naira.

    “But what managed float means is that we have some measures in place to help control the spiral.”

  • Naira Depreciates Against Dollar, Exchanges At N419

    Naira Depreciates Against Dollar, Exchanges At N419

    The Naira on Thursday depreciated at the Investors and Exporters window exchanging at N419 to the dollar, a 0.24 per cent depreciation, weaker than N418 it traded on Wednesday.

    The open indicative rate closed at N417.40 to the dollar on Thursday.

    An exchange rate of N444 to the dollar was the highest rate recorded within the day’s trading before it settled at N419.00.

    The Naira sold for as low as 410 to the dollar within the day’s trading.

    A total of 108.24 million dollars was traded in foreign exchange at the official Investors and Exporters window on Thursday.