Naira falls to N505 per dollar at parallel market ; forex trade hits $172.24m

Naira falls to N505 per dollar at parallel market

Naira falls to N505 per dollar at parallel market; forex trade hits $172.24m     The exchange rate between naira and the US dollar closed at N411.75/$1 at the official Investors and Exporters window on Tuesday June 15. The Nigerian local currency depreciated against the US dollar to close at N411.75 to a dollar. This represents a 95kobo loss compared to N410.8/$1 recorded on Friday, 11th June 2021. Also, the naira depreciated by N3 at the parallel market to close at N505/$1 on Tuesday as against N502/$1 recorded on Monday, while…

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Bismarck Rewane forecasts respite for naira at N470/$ in parallel market by July

Bismarck Rewane forecasts respite for naira at N470/$ in parallel market by July

Bismarck Rewane forecasts respite naira at N470/$ in parallel market by July     Chief Executive Officer (CEO), Financial Derivatives Company Ltd (FDC), Mr. Bismarck Rewane, has predicted that the local currency will appreciate to N490/$1 this month. As concerns mount over the continued decline in the value of naira against major currencies, he also forecast that the “parallel market rate will oscillate between N470/$ and N490/$ in July.” The FDC boss stated this in his June 2021 Lagos Business School (LBS) Executive Breakfast Session presentation, made available to Business…

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CBN increases forex allocation to banks, assures liquidity for Invisibles

CBN increases forex allocation to banks, assures liquidity for Invisibles

CBN increases forex allocation to banks, assures liquidity for Invisibles     The Central Bank of Nigeria (CBN) has concluded plans to increase the amount of foreign exchange allocated to banks to meet the requests of customers. This particularly relates to requests of travelers seeking foreign exchange for travel allowances, payment of tuition and medical fees, among other invisibles. It follows a warning issued by the CBN Governor, Mr Godwin Emefiele, at a meeting with the Managing Directors of Deposit Money Banks (DMBs). Emefiele cautioned them to desist from denying…

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CBN defends naira with $1.47bn in one month

CBN increases forex allocation to banks, assures liquidity for Invisibles

CBN defends naira with $1.47bn in one month     The Central Bank of Nigeria (CBN) injected $1.47 billion into the foreign exchange segment of the market as part of its efforts to stabilise the naira in January. According to figures from the CBN’s January report on its foreign exchange market developments, this was a decrease of 47.4 per cent and 64.0 per cent from the level in the preceding month and corresponding period of 2020. Part of the report read, “Total foreign exchange sales to authorised dealers by the…

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CBN shifts forex transactions to I&E window

CBN increases forex allocation to banks, assures liquidity for Invisibles

CBN shifts forex transactions to I&E window     The Central Bank of Nigeria (CBN) has shifted official forex transactions to the Investors’ & Exporters (I&E) forex window, it was learnt yesterday. The apex bank’s  adoption of a new flexible exchange-rate policy for official transactions effectively marks the third devaluation of the naira in a year. The exchange rate in the Investors and Exporters Window ( I&E window ) also called the Nigerian Autonomous Foreign Exchange -NAFEX has remained at N410/$1 since February. The naira exchanges at N486 to dollar…

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In retrospect: Nigeria attracted $2.14bn forex in Q4 2020

Nigeria’s forex inflow suffers 54% decline in January

In retrospect: Nigeria attracted $2.14bn forex in Q4 2020   The Nigerian economy attracted a total sum of $2.14 billion as foreign exchange inflow in the fourth quarter of 2020, pushing the total forex to $23.60 billion from $21.46bn in the third quarter, figure from the Central Bank of Nigeria revealed. The CBN stated this in its report on ‘Foreign exchange flows through the economy’ which was obtained by Business Metrics on Wednesday. The report showed that for the fourth quarter, despite that there was an increase in foreign exchange…

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FOREX: CBN defends naira with $21.18bn in 11 months

CBN increases forex allocation to banks, assures liquidity for Invisibles

FOREX: CBN defends naira with $21.18bn in 11 months     In bid to meet demands and further strengthen naira, the local currency, the Central Bank of Nigeria (CBN) sold foreign exchange amounting to $21.18billion to authorised dealers between January and November last year, findings have shown. The figure is $13.40 billion less than the $34.58 billion that the regulator sold to authorised dealers in the corresponding period of the previous year. According to the November 2020 monthly economic report it released a few days ago, the CBN sold forex…

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External reserves rise by $930m in two weeks

CBN increases forex allocation to banks, assures liquidity for Invisibles

External reserves rise by $930m in two weeks   The country’s external reserves rose by $930 million from $35.37 billion as of December 31, 2020 to $36.30 billion as of January 14, 2021. Figures obtained from the Central Bank of Nigeria (CBN) have shown. This is in line with an earlier projection by Fitch Rating that the reserves could hit $42 billion by the end of 2021 The CBN also disclosed that foreign exchange inflow through the bank in the third quarter of 2020 stood at $6.97 billion. It said,…

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Forex inflow through CBN declines to $6.97bn in Q3 2020

CBN increases forex allocation to banks, assures liquidity for Invisibles

Forex inflow through CBN declines to $6.97bn Q3 2020   Foreign exchange inflow through the Central Bank of Nigeria (CBN) in the third quarter of 2020 stood at $6.97 billion. The CBN disclosed this in the third quarter economic report. It said, “Foreign exchange inflow through the Central Bank of Nigeria decreased in the third quarter of 2020, largely due to a reduction in non-oil inflow. “During the review period, aggregate foreign exchange inflow through the CBN stood at $6.97bn, a decrease of 30.7 per cent and 43.6 per cent…

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AfCFTA implementation: Analysts see respite for Nigeria’s FX pressure

AfCFTA implementation

AfCFTA implementation: Analysts see respite for Nigeria’s FX pressure   Analysts at PFI Capital Limited have said that the huge demand for foreign exchange in Nigeria will ease if there is an effective implementation of African Continental Free Trade Area (AfCFTA) agreement and a significant increase in the country’s export earnings. The analysts, who stated this in a report obtained by Business Metrics, noted that the surge in demand for forex resulted in naira losing close to 30 per cent in value within the last one year, and more than…

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