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

CBN orders closure of money transfer

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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Hard Choice

CBN orders closure of money transfer

CBN could not but adjust the exchange rate in view of exigencies In many ways, the latest adjustment by the Central Bank of Nigeria (CBN), of the exchange rate from N360 to N380 of the United States dollar was predictable. Aside coming as a pragmatic measure in the face of falling crude oil revenue – the major source of our forex – the measure answers to the demand by both the International Monetary Fund (IMF) and World Bank for unified exchange rate, particularly with the apex bank’s earlier commitment to…

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Reforms Delay $1.5bn World Bank Loan To Nigeria

naira

The World Bank is unlikely to approve the much-needed $1.5 billion for Nigeria this month as planned due to concerns over desired reforms, it was gathered yesterday. Reports show that a delay in financing from multilateral lenders could leave the economy and top oil producer, battered by low crude prices, unable to fully finance a record N10.8 trillion ($28.35 billion) budget. The Central Bank of Nigeria (CBN) has said the country’s balance of payments gap this year will be $14 billion. The World Bank, which has warned that the country…

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Naira sentiment shapes week’s market openings

Naira sentiment shapes week’s market openings

In the face of economic uncertainty, dollar scarcity and depressed Oil prices, the Central Bank of Nigeria (CBN) has devalued the Naira for the second time this year. At an auction of importers last Friday, the CBN asked that bids for foreign exchange to be made at 380 Naira per dollar, compared with 360 previously. While this move may harmonize Nigeria’s multiple exchange rates and even improve transparency, it may come at the cost of higher inflation. Given how consumer prices have already jumped to 12.40 per cent in May…

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CBN defended Naira with $11.5bn forex in Q1

CBN orders closure of money transfer

The Central Bank of Nigeria (CBN) injected $11.5 billion foreign exchange (Forex) into the economy in the first three months of 2020 to boost the capacity of the local currency, naira. Latest figures from the CBN on the supply of forex showed that $2.96 billion, $3.39 billion and $4.7 billion were injected into the market in January, February and March respectively. The investors’ and exporters’, small and medium enterprises and invisible segments got a total of $7.23 billion; the Bureau De Change segment was funded $3.6 billion, while the interbank…

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Currency in circulation hits N2.35trn

CBN moves to regulate Open Banking in Nigeria

Huge cash transactions in the economy has continued to rise as currency in circulation rose to N2.35 trillion in May. This was despite coronavirus-induced lockdown and lull in economic activities in the country over past months. Statistics obtained from the Central Bank of Nigeria (CBN) on Monday showed that the figure, which stood at N2.29 trillion as of the end of March, rose to N2.3 trillion as atthe end of April. The apex bank stated, “Currency in circulation at end-November 2019 rose by 9.9 per cent to N2.2 trillion, in…

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