Poor forex policies discouraging investors –LCCI

naira

The Lagos Chamber of Commerce and Industry has said inappropriate foreign exchange policies are discouraging new capital investments. The President, LCCI, Mrs Toki Mabogunje, during the group’s quarterly press briefing on the state of the economy, pointed out that there had been a sharp decline in capital inflows between the first quarter and the second quarter of the year. She said this could be linked to the capital control policies introduced by the Central Bank of Nigeria. The LCCI boss called for the introduction of a market-driven foreign exchange management…

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CBN disburses $13.99bn defending naira in H1’ 2020

CBN disburses $13.99bn defending naira in H1’ 2020

In a bid to strengthen the local currency, Naira, the Central Bank of Nigeria (CBN) supplied $13.99 billion into the market between January and June. The bank disclosed this in its quarterly statistical bulletin on ‘Supply of forex’ for the month of June. According to the CBN, the forex were supplied to the interbank segment, the Bureau De Change operators, and also the Investors & Exporters window, Small and Medium Enterprises and invisibles. It disclosed that $122.9 million, $63.2 million, $2 million, $62.12 million, $55.89 million and $68.86 million were…

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CBN expects foreign reserves’ dip to $29.9bn by year end

CBN, Currency in Circulation, DMBs, Naira

Amidst continued pressures on the external sector of the economy, the Central Bank of Nigeria (CBN) has projected a major fall in the country’s foreign reserves to $29.9 billion by the end of 2020 citing decline in oil prices and the impact of the Coronavirus (COVID-19) pandemic. In a report titled, ‘Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2020/2021’, the apex bank stated: “Sequel to the COVID-19 pandemic, the viability of the external sector in 2020 is expected to deteriorate, given the present worsening current account…

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Forex: CBN sets new rules to prevent quick depletion reserves

CBN PMC MPR

Amid free-falling foreign exchange reserves in it’s vault, the central Bank of Nigeria (CBN) has banned transfer of foreign exchange (forex) from one customer to another. CBN emphasised that based on the new rules, forex cash lodgements into domiciliary accounts can only be done by the account owners henceforth. An internal memo available to the media explains that the new guidelines are necessary to review the utilisation of inflows into customers domiciliary accounts. The circular states: “Forex inflows cannot be credited to customers until the legitimacy of funds is established.…

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Again, FG blames naira woes on oil price, capital inflow declines

Emefiele MPR, MPC rate cut

As local currency plunges further to N460/1$ _____________________________ Godwin Emefiele, governor of the Central Bank of Nigeria (CBN) has blamed loss of value by the country’s local currency, naira, on the declining oil price in the global market and the fall in capital inflow into the country. He said this during the 13th annual Banking & Finance Conference, being organised by the Chartered Institute of Bankers of Nigeria (CIBN) with the theme, “Facilitating a sustainable future: The role of banking and finance,” on Tuesday. On the same say, the naira…

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Food, fertilizer importers hit hard by new presidential directive on forex

forex, CBN, fertiliser

In a bid to bolster local production, importers of food items and fertilisers in Nigeria have been disqualified from accessing forex in the vault of the Central Bank of Nigeria (CBN). In a stern manner, President Muhammadu Buhari on Thursday directed the CBN not to provide forex for the importation of food items or fertilizer going forward. Speaking on Thursday at a meeting of the National Food Security Council at the State House in Abuja, the president urged private businesses bent on food importation to source their foreign exchange independently.…

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Naira continues to nosedive despite CBN’s $51.8m intervention; exchanges for N440/$

CBN resumed dollar to BDC

Four days after the Central Bank of Nigeria (CBN) had resumed partial sales of dollar to Bureau De Change (BDC) operators in the country, the local currency, naira, continues to trade on the low side as it exchanged for N440 to a dollar in the parallel market on Thursday. The naira had last week dropped from N480/$ to N420/$, following CBN’s announcement to resume forex sales to the BDCs. Market observers noted that the appreciation recorded by naira was due to release of hoarded forex by market speculators in the…

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Int’l flight resumption triggers CBN to resume dollar sales to BDCs

naira

The Central Bank of Nigeria (CBN) has announced that from September 7, it will resume sales of foreign exchange (forex) to Bureau De Change operators in the country. This epochal move is a response by the apex bank to the announcement made on Thursday by the Nigerian Civil Aviation Authority (NCAA) that international flights is expected to unfailingly resume by September 5, following a one-week delay from the initial August 29 date. The Central Bank revealed its plan Thursday in a circular to all authorised dealers, BDCs, and general public…

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FMDQ Post N18.72tn Turnover In July

FMDG, FX, Forex

Turnover in the Fixed Income and Currency (FIC) markets for the month ended July 30, 2020 was N18.72 trillion, indicating a month-on-month (MoM) increase of 13.66 per cent (N2.25 trillion) from the turnover recorded in June 2020 (16.47 trillion). This represents a year-onyear (YoY) decrease of 14.43 per cent (N2.36 trillion) from the turnover recorded in July 2019 (N16.36 trillion). As at July 29, 2020, YTD turnover was N136.00 trillion, representing a YoY increase of 0.30 per cent (N0.41 trillion) on the YTD turnover of N135.58 trillion recorded in July…

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