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  • Naira dips against Dollar by -0.12%

    Naira dips against Dollar by -0.12%

    The Naira exchanged at N419.00 to the dollar at the Investors and Exporters window on Friday, a -0.12 per cent depreciation, compared to 418.50 to the dollar on Thursday.

    The open indicative rate closed at N417.30 to the dollar on Friday.

    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 158.55 million dollars was traded in foreign exchange at the official Investors and Exporters window on Friday.

  • CBN to Stop Sale of Forex to Banks as Naira Falls Against Dollar

    CBN to Stop Sale of Forex to Banks as Naira Falls Against Dollar

    By Becky Adi

    Naira fell massively at the black market on Thursday after traders learned that the Central Bank of Nigeria (CBN) was planning to halt dollar sales to commercial banks.

    Although CBN said it will make the decision by the end of 2022, traders wasted no time to weaken the Naira from N572 to above N580 to a dollar.

    A trader AUN Okota area of Lagos who spoke to Ripples Nigeria on the phone confirmed the new rates while stressing that some other persons are selling higher.

    According to him, sourcing for foreign exchange has been difficult lately especially British Pounds sterling and it was normal they pass the cost to willing buyers.

    On Thursday, the CBN Governor, Godwin Emefiele, after a bankers committee meeting in Abuja announced to journalists in a virtual conference that commercial banks must begin to source their forex from export proceeds.

    He noted that the era of waiting for CBN to give dollars is no longer visible.

    “The era is coming to an end when, because your customers need 100million dollars in foreign exchange or 200 million dollars, you now want to pack all the dollars and pass it to CBN to give you dollars.

    “It is coming to an end before or by the end of this year. We will tell them don’t come to the Central Bank for foreign exchange again, go and generate your export proceeds.

    “When those export proceeds come, we will fund them at 5% for you and they will earn rebait. Then you can sell those proceeds to your customers that want 100 million dollars. But to say you will continue to come to the Central Bank to give you dollars, we will stop it,” the CBN boss said.

    Also at the official market, Naira fell to the US dollars a day after it recorded a marginal gain.

    Data from the FMDQ securities website showed that at the investors and exporters window, Nigerian currency closed at N416.67 to a dollar on Thursday.

    This represents a N0.3 or 0.10 per cent devaluation from N416.37 it exchanged in the previous session on Wednesday.

    Naira devaluation came as traders exchanged $109.75 million which was higher than the $170.94 million recorded on Wednesday.

    It was a similarly poor performance at the interbank market as Naira exchanged at N417.51 to a dollar from N417.37 a day earlier.

    Naira against the Pound Sterling on Thursday closed flat at N566.72/£1 and improvement from N586.18/£1

    However, against the Euro, Nigerian currency fell to N477.4/€1 from N476.75/€1 it had traded a day earlier.

  • Naira depreciates as banks shift BTA/PTA rates to N419 per Dollar

    Naira depreciates as banks shift BTA/PTA rates to N419 per Dollar

    The value of the Nigerian naira depreciated by 1.5 percent as banks shifted personal travel allowance (PTA) and business travel allowance (BTA) rates from N413 to N419 per dollar.

    PTA and BTA are currency exchange schemes specifically set up for Nigerians travelling abroad for personal or business reasons. Each traveller can get up to $4000 every quarter to lessen FX disparity at parallel and official markets.

    The rate, which exchanged for N413 per dollar in the last few months, has added about N6, bank sources told TheCable on Wednesday.

    “We are surprised to see the changes too. The differences have always been kobo — but recently it has moved from N413 to 417 and within the last week and now, our portal is exchanging for N419 to a dollar,” a source said.

    “Customers have no choice. So, most people do not complain about the new development. It is better than the aboki (black) market rate of N570.”

    At the parallel market, naira traded flat at N570 against the US dollar.

    Bureaux De Change operators (BDCs), popularly known as ‘abokis’, who spoke to TheCable, quoted the naira at N567/N570 to a dollar.

    A parallel market (street market) is characterised by noncompliant behaviour with an institutional set of rules.

    Since the suspension of trading information by abokiFX — citizens have resorted to street traders for current parallel market rates of the local currency.

    The Central Bank of Nigeria (CBN) has consistently maintained that the parallel market represented less than one percent of foreign exchange (FX) transactions and should never be used to determine Nigeria’s naira/dollar exchange rate.

    On the apex bank’s website, the local currency closed at N415.17 to a dollar at the official market on Tuesday.

    This means the rate has dropped N2 so far in January at the official market.

    Nwanisobi Osita, spokesperson of the CBN, had told TheCable that the market determines the exchange rate.

    “If you see N413, then that’s what it is. The market determines the rate,” Osita said.

    The apex bank has devalued the exchange rate multiple times since March 2020 as it strives to bridge the disparity between the official and parallel market rates.

  • Naira gains, exchanges for N565/$1 at parallel market

    Naira gains, exchanges for N565/$1 at parallel market

    The Nigerian naira gained marginally against the US dollar at the parallel market to trade at N565 per dollar.

    This figure is N5 or 0.9 percent higher than the N570 it traded last week.

    Street traders across forex markets in Lagos who spoke to TheCable on Wednesday quoted the naira at N565 to a dollar.

    A parallel market (street market) is characterised by noncompliant behaviour with an institutional set of rules.

    The CBN has consistently maintained that the parallel market represented less than one percent of foreign exchange (FX) transactions and should never be used to determine Nigeria’s naira/dollar exchange rate.

    Checks by TheCable showed that the country’s foreign reserves have dipped by $53 million in the last 20 days.

    Ahead of yuletide, it is expected that the Central Bank of Nigeria (CBN) will intervene at the forex market by pumping more dollars to avert sharp fall.

    According to data on the CBN website, foreign reserves dropped from $41.1 billion at the beginning of December to $40.6 billion as at December 20.

    On the official market side, the naira appreciated by 0.02 percent to open at N414.04 to a dollar on Wednesday, according to data on FMDQ OTC Securities Exchange, a platform that oversees official foreign-exchange trading in Nigeria.

    Following the halt in FX sale to Bureau De Change operators (BDCs), the CBN has continued to channel weekly allocations of dollar sales to commercial banks to meet legitimate FX demands.

    The Economic and Financial Crimes Commission (EFCC) had warned banks against selling foreign currencies to customers with no intention of travelling outside the country.

  • Naira gains at official market despite a significant drop in forex trading

    Naira gains at official market despite a significant drop in forex trading

    The exchange rate between the naira and the US dollar closed at N414.8/$1, at the official Investors and Exporters window, despite reduction on forex trading

    Naira gained against the US dollar on Thursday after maintaining a rate of N415.1 in the previous trading session. The exchange rate on Thursday gained 0.07% to close at N414.8/$1 from N415.1/$1 recorded on Wednesday, 17th November 2021.

    At the parallel market, naira also depreciated slightly to close at N546/$1 from N545/$1 recorded in the previous trading session.

    This is according to information obtained from BDC operators interviewed by Nairametrics.

    in the same vein, Nigeria’s foreign reserve recorded a marginal decline of 0.03% on Wednesday, 17th November to close at $41.42 billion compared to $41.43 billion recorded as of the previous day.

    Trading at the official NAFEX window
    Nairametrics also reported that the exchange rate at the Investors and Exporters window gained 0.07% to close at N414.8/$1 on Thursday, 18th November 2021 from N415.1/$1 recorded in the previous trading session.

    The opening indicative rate closed at N413.19/$1 on Thursday, indicating a 55 kobo appreciation compared to N413.74/$1 recorded in the previous trading session.

    An exchange rate of N444 to a dollar was the highest rate recorded during intra-day trading before it settled at N414.8/$1, while it sold for as low as N404/$1 during intra-day trading.

    Forex turnover at the official window dropped by 69.8% to $90.18 million on Thursday.

    According to data tracked by Nairametrics from FMDQ, forex turnover at the I&E window decreased from $298.88 million recorded on Wednesday, 17th November 2021 to $90.18 million on Thursday, 18th November 2021.

    Cryptocurrency Analysis
    Bitcoin continues with a landslide drop, dropping by 4.6% on Thursday to close at $57,596.83 as of 11pm. The decline in the flagship crypto asset, triggered a 4.11% dip in the cryptocurrency market as the market capitalisation closed at $2.479 trillion. This implies that $106.18 billion was lost in the market.

    Also, Ethereum dipped 6.31% on Thursday to close at $4,020.98, while XRP lost 4.61% to close at $1.04551.

    The crypto market has also started on a bearish note on Friday as Bitcoin has fallen below $57k due to a 1.41% drop in the price.

    Crude oil price watch
    Brent Crude gained 1.03% on Thursday to close at $81.11 per barrel after enduring recurrent bearish trades earlier in the week. Similarly, West Texas Intermediate (WTI) gained marginally by 0.7% to close at $78.91 per barrel.

    Meanwhile, Natural Gas gained 1.76% in price to close at $4.901, while OPEC Basket dipped 1.11% to close at $81.1 per barrel.

    The US Energy Information Administration (EIA) projects that Brent oil price could fall to an average of $72 per barrel in 2022. This is due to the expected surplus on the market on the back of rising production from the United States and the OPEC+ group.

    According to EIA’s latest monthly Short-Term Energy Outlook (STEO), global crude oil demand will exceed global supply through the end of this year, contribute to some additional inventory draws, and keep Brent Crude prices above $80 per barrel through December 2021.

    Nigeria’s crude, Bonny Light dipped 1.11% to close at $80.78 per barrel, Brass River and Qua Iboe both declined by 1.09% to close at $80.54 per barrel.

    External reserve
    Nigeria’s foreign reserve dropped marginally by 0.03% to close at $41.42 billion as of Wednesday, 17th November 2021 compared to $41.43 billion recorded as of the previous day. The decline can be attributed to the continuous intervention of the apex bank in ensuring the stability of the exchange rate; a move that has seen the rate at the parallel market drop from N575/$1 to about N546/$1.

    Meanwhile, the nation’s foreign reserve had gained $5.04 billion in the month of October, as a result of the $4 billion raised by the federal government from the issuance of Eurobond in the international debt market.

    The gain recorded in the previous month is higher than the $2.76 billion gain recorded in the month of September 2021. Meanwhile, Nigeria’s reserve has declined by $401.41 million so far in the month of November. On a year-to-date basis, the reserve has gained $6.04 billion.

  • Naira weakens further to 517 against Dollar

    Naira weakens further to 517 against Dollar

    The naira fell further against the dollar at the parallel market on Wednesday after staying steady at 515/$ in recent days.

    The local currency fell to 517 against the US currency at the parallel market on Wednesday.

    At the Investors and Exporters’ window, the naira weakened by 0.06 per cent to close at 411.75/$ on Wednesday, according to FMDQ Group.

    The naira had strengthened to 506/$ on August 4 after plunging to 525/$ at the parallel market on July 28, a day after the Central Bank of Nigeria stopped foreign exchange sales to Bureaux de Change. It had been hovering around 508/$ and 510/$ in recent days.

    The CBN Governor, Mr Godwin Emefiele, had on July 27, at the end of the Monetary Policy Committee meeting, announced the stoppage of forex sale to the BDCs, saying they had turned themselves into ‘agents that facilitate graft and corrupt activities of people who seek illicit fund flow and money laundering in Nigeria’.

    He said the CBN would channel a significant portion of its weekly allocation currently meant for BDCs to commercial banks to meet legitimate forex demand for ordinary Nigerians and businesses.

    Reporst had it that the total forex transactions on FMDQ Securities Exchange rose by about 2.24 per cent last week.

    The Exchange said in the forex spot and derivatives markets, the total turnover for the week ended August 13, 2021 was $692.60m, up from $677.44m reported for the previous week.

    It said the week-on-week increase in turnover was driven by the 12.31 per cent increase in the forex spot, despite the 24.06 per cent decrease in forex derivatives turnover.

    The total value of transactions in the Investors’ & Exporters’ window was $550.14m, representing an increase of 12.31 per cent from $489.85m in the previous week.

    According to the Exchange, the average Nigerian Autonomous Foreign Exchange Fixing rate was N411.17/$, compared to N411.16/$ recorded in the previous week, representing a depreciation of the naira against the dollar by 0.003 per cent.

    The naira, however, appreciated against the dollar by 0.04 per cent at the parallel market as it averaged 510.60/$, compared to 510.80/$ in the previous week.

  • Naira gains 0.02% to N409.67/$ at I & E FX window

    Naira gains 0.02% to N409.67/$ at I & E FX window

    The exchange rate between the naira and the US Dollar closed at N409.67 to a dollar at the Investors and Exporters window.

    The Naira appreciated marginally against the US Dollar on Thursday, to close at N409.67/$1. This represents a 0.02% gain when compared with the N409.75/$1 that was recorded on Wednesday despite oil prices recording the single biggest day loss in 11 months.

    Also, the Naira maintained stability against the US Dollar in the parallel market, to close at N485 to a dollar the same as the rate that was recorded on the previous day.

    The opening indicative rate closed at N409.14 to a dollar on Thursday representing a 64 kobo gain when compared to N409.78/$1 recorded on Wednesday.

    Also, an exchange rate of N412 to a dollar was the highest rate during intra-day trading before it closed at N409.67/$1. It also sold for as low as N400/$1 during intra-day trading.

  • Why we introduced Naira 4 Dollar Scheme – CBN

    Why we introduced Naira 4 Dollar Scheme – CBN

    The Central Bank of Nigeria has explained the reason for the introduction of the Naira 4 Dollar Scheme for Nigerians in the diaspora who are seeking to send money into Nigeria.

    The apex bank had announced this new scheme to encourage the increase in inflows of diaspora remittances in the country.

    In a series of tweets, the CBN notes that consistent with the global trend, Nigeria aspires to ensure that remittance flows and diaspora investments become a significant source of external financing.

    The bank adds that in an effort to reduce the cost burden of remitting funds to Nigeria by working Nigerians in the Diaspora, it introduced a rebate of N5 for every $1 of fund remitted to Nigeria, through IMTOs licensed by the CBN.

    The governor of the central bank of Nigeria, Mr. Godwin Emefiele also notes that policy on the administration of remittance flows is aimed at increasing the transparency of remittance inflows, reducing rent-seeking activities, and providing Nigerians in the diaspora with cheaper and more convenient ways of sending remittances to Nigeria.

  • Why naira is on a free fall against the dollar

    Why naira is on a free fall against the dollar

    By Amadin Idahosa and Joshua Tasie

    The latest exchange rate of the naira against dollar is currently placed at N379, from the initial N361 to the dollar which has been stable in the past five months.

    The fall it was gathered is because the Central Bank of Nigeria, CBN, had agreed with the IMF to unify the exchange rate as part of the conditions for accessing $3.4 billion IMF loan in May.

    The adjustment was carried out by the CBN which noted that the official exchange rate was in line with the banks earlier commitment to the International Monetary Fund, IMF proposal.

    The loan, which came under the Rapid Financing Instrument, RFI, was meant to assist Nigeria’s fight against COVID-19 and resolve urgent balance of payment needs.

    In a letter to the IMF, the Federal Government had assured that it would work towards “full exchange rate unification and greater exchange rate flexibility” to help preserve foreign exchange reserves and avoid economic dislocation.

    The new official exchange rate now displayed on the CBN website is closer to the N381/$ being traded on the Secondary Market Intervention Sales, SMIS window.

    The SMIS is the market where importers bid for forex using letters of credit and Form M.

    Pointing out some reasons for the adjustment, CBN hinted that with the subdued oil revenues, it would help boost funds available to the federation accounts allocation committee for disbursement to the three tiers of government.

    However, the naira closed at N475 to dollar at the parallel market where a large part of the demand for dollars have shifted to.

    It would be recalled that the CBN had also devalued the currency in March, when it adjusted the official peg against the dollar to N360 from N307.

    This, however, CBN Governor, Godwin Emefiele, said at the time the move was “an adjustment of price and not a devaluation of the currency.”

    Foreign investors, IMF and Wor

  • Naira strengthens marginally to dollar at I&E window

    Naira strengthens marginally to dollar at I&E window

    The Naira on Monday gained marginally to the dollar at the Investors and Exporters (I &E) window closing at N389.25 to a dollar as against N389.50 posted on Friday.

    Trading at the window picked on Monday as investors traded a total of 46.67 million dollars as against 12.61 million dollars traded on Friday.

    According to naijaBDCS.com, the Naira exchanged at N472.50 to a dollar at the parallel market in Lagos, while the Pound Sterling and the Euro closed at N587 and N537, respectively.

    At the official Central Bank of Nigeria (CBN) window, the Naira exchanged at N381 to a dollar.(NAN)