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  • JUST IN: Buhari appoints Edward Adamu as Deputy Governor of CBN

    JUST IN: Buhari appoints Edward Adamu as Deputy Governor of CBN

    …Sends name to Senate for approval

    President Muhammadu Buhari has approved the appointment of Edward Adamu as the deputy governor of the Central Bank of Nigeria (CBN).

    Femi Adesina, spokesman of the president, who disclosed this in a statement, said the appointment is subject to the confirmation of the senate.

    “In accordance with the provisions of Section 8(1) (2) of the Central Bank of Nigeria (CBN) (Establishment) Act 2007, President Muhammadu Buhari has nominated Mr. Edward Lametek Adamu to the Senate for confirmation as Deputy Governor of the CBN,” the statement read.

    “This was contained in a letter dated January 26, 2018 to the Senate President, Bukola Saraki.

    “Adamu, from Gombe state, replaces Sulaiman Barau, from Zaria, Kaduna state, who retired in December, 2017.

    “The nominee, who has spent 25 years in the CBN, was appointed in 2012 as Director of Strategy.

    “He became Director, Human Resources in 2016, from where he was nominated as Deputy Governor.”

  • CBN injects $210m into Forex Market as Naira sells for N305/$1

    The Central Bank of Nigeria (CBN) on Monday injected $210 million into various segments of the inter-bank market as the value of naira dipped to N305.70 to the dollar at the official window.

    The naira which closed last week Friday at N305.65 to the dollar at CBN window before dropping to N305.70 also weakened slightly at Investors and Exporters window from N360.35 last week to N360.37 to dollar on Monday.

    The currency however remained stable at N364 at the parallel market. At Monday’s trading, the CBN offered the sum of $100 million as wholesale interventions and allocated the sum of $55 million to the Small and Medium Enterprises (SMEs) forex window.

    Customers requiring forex for Business/Personal Travel Allowances, tuition and medical fees, among others, equally got an allocation of $55 million.

    The acting director, Corporate Communications Department, at the Bank, Isaac Okorafor, confirming the sales, reiterated that the apex bank would sustain its interventions in the foreign exchange market. He expressed optimism that the value of the naira will continue to spike in the face of accretion to the foreign reserves and the attendant reduction in the country’s import bill.

    While also attributing the stability in the market to the Bank’s transparency and cooperation of authorized dealers, he urged all dealers to continue to play by the rule, as the CBN would not hesitate to sanction any erring bank or dealer. Meanwhile, the naira continued to maintain its stable run against major currencies around the globe, exchanging for N362/$1 in the BDC segment of the market on Monday, January 29, 2018.

  • Is CBN defending the Naira or Dollar? By Henry Boyo

    Is CBN defending the Naira or Dollar? By Henry Boyo

    By Henry Boyo

    “AS I speak to you, our external reserves stand above $31bn and that provides us with enough fire power to be able to defend the Naira (N305=$1)” (Godwin Emefiele CBN Governor, April 25th, 2017).

    However, fast forward to January 2018 with reserves above $40bn, i.e over 30% increase since April 2017, with reduction, also in exchange outflows from the ban of imports of non essentials, the naira inexplicably remains between N305-360=$1. Governor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele The question, therefore is: “Is CBN actually defending the Naira?” The above title, was first published in Punch and Vanguard Newspapers on 12th January, 2015.

    A summary follows hereafter: “Evidently, the serial devaluation from stronger than N1=$1 to an abysmal low of about N70=$1, at that time, was probably, the most significant instigator of the oppressive economic challenges, induced by, the IMF imposed Structural Adjustment Programme’ (SAP).

    Nigeria’s once pulsating industrial base gradually became almost silent. The oppressive Naira devaluation reduced wages to ‘peanut’ value; consequently, the ‘check out’ syndrome became fashionable, as, well heeled professionals, and technocrats sought greener pastures abroad, in order to maintain the accustomed dignity in their lifestyles.

    Sadly, the impact of the near fatal blows from SAP has truncated our development till this day, and Nigeria is now listed as one of the world’s poorest nations. Inexplicably, despite exceptionally high crude oil prices, around $140/barrel, a while back, with the attendant bountiful dollar reserves accumulated, the economy continued to falter.

    Ironically, rising dollar reserves, and extended payments cover for our imports, have even fostered weaker Naira exchange rates, such that one wondered if less reserves would in contrast, unexpectedly induce a stronger Naira!

    However, the reduction in revenue, when crude oil prices later fell below $60/barrel, undeniably, however constituted another onslaught on the Naira exchange rate and inclusive economic growth and employment.

    Thus, in our quest for a socially and industrially supportive exchange rate, we find ourselves in a bizarre twist of “heads or tails”, we lose. Indeed, as with SAP, the embedded role of IMF technocrats in the management of our economy, also fostered the unfortunate notion that Naira rate is overvalued, even when we had best ever foreign reserves above $60bn and largely extended imports payments cover.

    Regrettably, government economic blueprints, such as NEEDS, were predicated on this obtuse mindset, that if the economy is not diversified fortuitously rising bountiful reserves, will neither induce, a stronger Naira nor growth.

    Well, today (2015), the Naira exchange rate is close to the N180=$1 projected to induce economic diversification and growth in the NEEDS blueprint, but sadly, catalytic lower rates of inflation, and cost of borrowing, with exchange rate stability which should drive inclusive growth, still remain unattainable. Certainly, no economy can perform creditably, when cost of funds, to real sector remains over 20%, while stable consumer demand, remains severely constrained with annual inflation rates of 8-12%, while Naira exchange rate, is also sliding nearer N200=$1, despite increasing dollar revenue and extended payments cover.

    Furthermore, it is clearly, financially reckless management, for any government to readily pay over N600bn as annual interest, on funds borrowed, but simply sterilized from use, despite the acute shortage of the cheap funds, required to drive real sector growth.

    Sadly, CBN and our Economic Management Teams have never been able to construct an appropriate growth model which supports low cost of funds (i.e. 3-6%), low inflation rate (1-3%), with a non-monopolistic and, open forex market that will drive the elusive quest for economic diversification and inclusive growth.

    Nonetheless, politicians, critics, and the general public are again united in singing the chorus of economic diversification, while under the illusion that El-Dorado will be attained by simply throwing billions of Naira as intervention funds at various economic sub-sectors. Indeed, in an economy with a burdensome, abiding problem of stupendously surplus Naira, such intervention funds, regrettably, simply compound the existing problem of inflation, which systemic surplus Naira sustains.

    Ultimately, the presence of such surplus funds, would instigate another kind of intervention, which compels CBN to increase its own borrowing, despite having to pay excruciatingly high and destabilising interest rates, which crowd out the real sector, from access to cheaper loanable funds, that are necessary to drive lower inflation rates and boost economic growth with increasing job opportunities.

    Clearly, the inexplicable burden of eternally surplus Naira is actually the major obstacle to achieving best practice supportive indices, required to grow and diversify the economy. Systemic surplus Naira supply is, clearly also, responsible for weaker Naira exchange rates, as CBN’s weekly auctions of modest dollar rations, are pitched, in a market, with excess Naira supply, which invariably creates an imbalance in favour of the dollar!

    Clearly, Nigerians do not interrogate the process through which CBN consolidates its so called “own reserves”! Indeed, CBN’s strategy of creating fresh Naira values, everytime it substitutes Naira budgetary allocations, for dollar denominated revenue, undeniably, induces a market imbalance of Naira surplus, chasing much smaller dollar rations; consequently, with this arrangement, CBN ironically becomes a stronger defender of the dollar, rather than the Naira exchange rate!

    Thus, the higher the dollar revenue from rising crude prices and output, the greater also would be the fresh supply of Naira that CBN would create and place in the economy as Naira substitute allocations, for the actual dollar income it earlier captured. Thus, whenever we celebrate CBN’s rising dollar reserves, we must recognise that the process of accumulating such reserves, is unfortunately, distortional, primitive and retrogressive, as it creates a paradigm of, the larger the reserves, the greater also is Naira liquidity, and the harsher and more counter-productive also, would ultimately be CBN’s monetary control measures to ironically reduce Naira supply, and restrain liberal lending and hopelessly, contain inflation, despite the harsh economic and social consequences of these measures.

    Thus, it is ironical that the CBN which instigates a market disequilibrium in favour of the dollar when it substitutes fresh Naira values for dollar denominated revenue, should later turn round, in seeming defence of the Naira exchange rate, to auction small rations of dollars in the same market, which the same CBN, had earlier inundated with excess Naira supply; unfortunately such a market imbalance will invariably always precipitate weaker Naira exchange rates, which will invariably increase fuel price, regardless of crude price and output.

    Surely, the adoption of dollar certificates for government allocations of dollar denominated revenue will eliminate or critically reduce the burden of excess Naira liquidity and therefore give the Naira a fighting chance against the dollar in the forex market.”

     

    Save the Naira, Save Nigerians!!

  • CBN injects $304.4m into forex market

    The Central Bank of Nigeria (CBN) has intervened in the Retail Secondary Market Intervention Sales (SMIS) of the inter-bank Foreign Exchange Market to the tune of 304.4 million dollars.

    The Bank’s Acting Director, Corporate Communications Department, Mr Isaac Okorafor, in a statement in Abuja on Friday reiterated that the objective of the CBN remained to boost liquidity, production and trade.

    He said that the recent interventions were in favour of interests in the agriculture, airlines, petroleum products, raw materials and machinery sectors.

    According to him, the CBN will continue to ensure liquidity in the interbank sector of the market as well as sustain its interventions in order to drive economic growth and guarantee market stability.

    Okorafor expressed optimism that the Nigerian economy stood to gain massively from the Bank’s foreign exchange management strategy.

    According to him, it can be seen in the accretion to the foreign reserves, which now stands at more than 40 billion dollars.

    Meanwhile, the naira exchanged for N361 to a dollar in the Bureau de Change segment of the market on Friday.

     

  • Anchor Borrowers Programme: Input suppliers seek Delta state intervention over N40m debt

    Input suppliers and off-takers under the Anchor Borrowers Programme (ABP) in Delta have called on the state government to help facilitate payment for their supplies to farmers under the scheme.

    Mr Emmanuel Ogidi, who spoke on behalf of the suppliers, made the appeal in an interview with News Agency of Nigeria on Tuesday in Abuja.

    Ogidi said that the Bank of Agriculture (BOA) had not paid for the materials worth over N40 million, which the farm input suppliers and off-takers supplied to farmers under the scheme in the state.

    The ABP, a programme of Central Bank of Nigeria (CBN), is aimed at creating economic linkages between smallholder farmers and reputable large-scale produce processors.

    The programme was established to increase agricultural output and significantly improve capacity utilisation of processors.

    The apex bank has set aside N220 billion for loans, aimed at developing the agricultural sector to attain self-sufficiency in food production.

    Ogidi said that the input suppliers and off-takers were appealing to the Delta government, through its Ministry of Agriculture, to come to our aid.

    “I and some of my colleagues supplied inputs, including animal feeds and other materials, to farmers but we have not been paid for the past four to five months.

    “We are supposed to be paid by CBN through the BOA. We have signed all the documents but they are now bringing in some administrative bottlenecks,’’ he said.

    Ogidi said that some of the suppliers were now facing serious financial challenges because of their cash crunch and lack of funds to run their businesses because of the debt.

    “In fact, we are hungry because we need the money for our business and to feed our families.

    “We are, therefore, appealing to the Government of Delta, as a stakeholder of the scheme, to please come to our rescue.

    “We are also appealing to the BOA to please address whatever the problem is and pay us our money.

    “Some of us have started perceiving the scheme to be a monumental fraud,’’ he added.

    In his reaction, the Delta Commissioner for Agriculture and Natural Resources, Chief Austin Chikezie, acknowledged that the state government was aware of the debt owed the input suppliers.

    Chikezie told NAN that the state government was striving to ensure the success of the scheme in the state, adding that it was looking into how the debt would be defrayed on time.

    He said that his ministry had intervened in the issue, adding that it had written several letters to appropriate authorities to ensure the payment of the debt.

    “As you know, the state government is not the one making the payment; it is the responsibility of the CBN to pay those suppliers who met all the conditions, as defined by the programme.

    “There are certain documentations that are required, particularly the banking documentation which every individual participant must certify before payment is made.

    “The first set of input suppliers under the programme in the state were paid over N1 billion.

    “As a state, we are working to ensure the success of the programme by insisting that the right farmers get the inputs and that the suppliers deliver the inputs according to specifications.”

    Chikezie said that the state government was also making efforts to get more input suppliers and off-takers to come on board as long as they were ready to comply with laid-down standards, in line with the programme expectations.

    A source at CBN, who preferred anonymity, said that the bank was not active in the Anchor Borrowers Programme in Delta.

    “We are presently active in 20 states. It is the Delta State Government that is responsible for the finance of the programme in the state,’’ he added.

    Meanwhile, efforts to get the reactions of the Managing Director of BOA to the issues and claims have proved abortive, as he did not pick calls nor reply SMS sent to him.

     

  • Is CBN The Genius behind higher fuel prices? – Henry Boyo

    Is CBN The Genius behind higher fuel prices? – Henry Boyo

    By Henry Boyo

    The acute scarcity of petrol, nationwide, may have receded significantly, but issues relating to steady supply, appropriate pricing and fuel subsidy, obviously still remain very contentious. Government and NNPC have invariably blamed private marketers for the fuel shortage, while marketers have conversely, demanded the immediate payment of over N720bn that NNPC owes them as refund of subsidies on their fuel imports.

    The debt may also include government’s compensation to marketers for trucking fuel, from the ports, to all nooks and crannies, so that fuel will sell at government’s regulated price of N145/litre nationwide. The significant degree of fraud inherent in this arrangement has become a regular menu for professional rent seekers; for example, petrol cargoes officially registered for delivery in faraway Kaura Namoda, could still be sold ex-depot in Lagos, while fake waybills will be presented, processed and approved for payment by NNPC. Consequently, the government’s equalisation strategy for uniform fuel price nationwide compounds the hundreds of billions of Naira lost to the subsidy fraud; inexplicably, however, equally critical agricultural produce, do not enjoy such subsidy to ensure that yam, for example, sells cheaper, at a uniform price nationwide.

    Arguably, the ‘beneficiary cabal’ of this scam will aggressively oppose any attempt to abolish the petrol bridging fund, and this may explain government’s seeming lack of enthusiasm and foot-dragging to build an efficient rail delivery system which would facilitate cheaper fuel transportation and will certainly also, do less damage to our already poor road network. Evidently, deregulation is bad business for treasury looters.

    Nonetheless, with abstention of marketers from fuel imports, NNPC’s forced import of all of Nigeria’s motor spirit requirements, according to Ibe Kachikwu, regrettably induces a “daily loss of between N800m-N900m” to the Corporation.

    However, last week, Wednesday, Jan 17 2017, the Senate rejected a report on fuel import values and subsidy presented by the Committee for Petroleum Resources, led by Senator Marafa, APC-Zamfara Central. Senate President, Bukola Saraki noted with apparent concern in his address, that “if we are consuming 27 million litres of petrol daily, while the NNPC brings in 40 million litres,” according to the report, “what about the difference?” “It is criminal!”

    Indeed, Marafa’s Committee was mandated to investigate the allegation that “a surplus of 5.9 billion litres of petrol (i.e. about N900m daily) could not be accounted for in 2017.”

    Notably, however, Senator Marafa had reportedly, inexplicably, deliberately barred the Minister of State, and other NNPC Directors from answering any question on the allegation of illegal subsidy payments during his Committee’s formal hearing.

    Consequently, Senator Nafada Bayero, APC-Gombe State, ironically observed that “this looks like a report of the NNPC” …. according to Bayero “it looks like a report that was imported into the Senate,” and the Senator therefore advised that “the Senate’s Petroleum Resources Committee should go back and bring its own report.”

    Ultimately, based on the general condemnation of Marafa’s report, the Senate President re-assigned the investigation to the Senate Committee on Public Accounts, to probe subsidies paid, without the Legislators’ endorsement.

    However, despite the seemingly patriotic grand standing and braggadocio, of the Senators, sadly the cultist loyalty of espirit de corp, may ultimately prevail and these matters of urgent public importance, and accountability could fade away, as usual, without consequences.

    Unfortunately, the problems of subsidy, scarcity and higher petrol prices, have subsisted for decades, and yet, we are clearly, no nearer a solution to this oppressive and suicidal game-plan for supplying Nigeria’s petrol needs.

    Invariably, if government cannot readily access the huge investment, employment and revenue potentials and opportunities, in a fully deregulated market space, then, further increase in petrol price, well beyond N200/litre will be inevitable and increasing subsidy values in excess of N1tn ($3bn) annually, will be recklessly flushed down the drain, while intermittent scarcity and the related social pain and angst will endure.

    Expectedly, in a regime of fixed prices, rising crude oil prices should technically propel higher fuel prices which will invariably induce public demand for increasing subsidy values, that will compound Nigeria’s steep climbing fiscal deficit, and our already crushing debt burden.

    Conversely, however, if petrol price remains fixed at N145/litre, for example, lower crude oil prices and output would ultimately reduce our forex reserves to also weaken the Naira exchange rate and ultimately restrain our capacity to settle our imports bills. Invariably, however since petrol, as an international commodity is priced in dollars, weaker Naira rates will instigate higher fuel prices which will ultimately compel public demand for price subsidy.

    Sadly, the above scenario depicts the ultimate national dilemma of regulated pricing and subsidy in the fuel business.

    Instructively, in addition to the odious collateral of increasingly oppressive subsidy values that price regulation induces, higher subsidy values will, evidently never attract private investment in new refineries to replace fuel importation. Ultimately, intermittent scarcity and rising public angst caused by NNPC’s inadequate capacity to solely fund and deliver Nigeria’s petrol requirements will become inevitable.

    Indeed, the underlying objective in the preceding 4 titles published in this column in recent weeks, was to explain why a consciously and deliberately misaligned Naira exchange rate is actually the real spoiler in the business of petrol supply and price, deregulation, and subsidy.(See www.lesleba.com-Is Petrol Still Subsidised?-25/12/17; The Dilemma of Subsidy and Fuel Scarcity-1/1/18; The Mother and Father of Fuel Prices-8/1/18 & Fuel Pricing: Kachikwu’s Desperate Options-15/1/18). It is certainly inexplicable and possibly reckless and fraudulent that the Naira rate remains relatively static even when forex reserves become extremely bountiful.

    Clearly, unless the Naira exchange rate is appropriately realigned, the debacle of fuel pricing, scarcity and increasingly oppressive subsidy values will be sustained to invariably distort best practice resource allocation and deepen poverty nationwide.

    It is a reasonable expectation, in any disciplined economy, overtime for exchange rate to fluctuate, in unison with higher or lower forex reserves, but the problem arises when, for example, Naira exchange rate remains static or worse still weakens, despite fortuitously relatively bounteous reserves, higher petrol prices will be instigated since, crude oil is also the base material for petrol.

    It is inexplicable that the Naira still officially remains static at N305/$ despite a significant 50 percent rise in crude oil price from below $40/barrel for part of 2017 to beyond $60/barrel.

    Conversely, if fortuitously bounteous reserves, expectedly, translate to stronger Naira exchange rate, the price of petrol will either remain stable or actually fall in proportion to the increasing level of foreign exchange accretion, from the stronger Naira exchange that is evolving. In such event, higher crude prices will actually become a blessing as it will boost reserves and also restrain or even reduce petrol price.

    However, Nigerians have hardly enjoyed the benefits of a stronger Naira for decades. The reason for this anomaly is traceable to CBN’s style of fixing the Naira exchange rate, by first capturing the export dollar revenue and then deliberately increasing domestic money supply, by fraudulently substituting bloated Naira allocations for export dollar earnings, at its own unilaterally determined exchange rate, before proceeding thereafter, to auction small rations from the earlier impounded caché of dollars in a market that the same CBN unashamedly decries to be highly inflationary, because it is already overwhelmed with too much Naira supply!!

    Expectedly, in such auctions, dollars will be sold to buyers who offer to pay more Naira per dollar. Instructively, with such a price model, no matter how high large reserves become, the Naira rate will, invariably, always weaken to precipitate rising fuel prices, which will ultimately compel public demand for a subsidised fuel price. Evidently, our monetary history in the last three decades, or so, loyally mirrors this observation.

    Consequently, unless CBN reviews the market paradigm for determining Naira exchange rate, it would remain impossible to successfully deregulate the downstream sector of the Petroleum industry.

    Save the Naira, Save Nigerians!!!

     

  • Forex: Market gains stability as CBN injects $210m

    The various segments of the currency market in the country gained stability last week as the Central Bank of Nigeria (CBN) put another $210 million into the market to sustain flow of forex to meet demands of customers.

    According to a weekly report released by Cowry Asset, the Naira strengthened against the US Dollar at the Investors & Exporters Forex Window (I&E FXW) by 0.09 percent to N360.10/$ week-on-week (w-o-w).

    However, at the Bureau De Change (BDC) and the interbank foreign exchange market segments, the local currency closed flat at N361/$ and N330/$ respectively.

    But at the parallel (black) market segment, the Nigerian legal tender depreciated by 0.28 percent to N364/$.

    During the week, the apex bank released $100 million to the Wholesale (SMIS) segment, $55 million to Small and Medium Scale Enterprises sector, and $55 million for invisibles.

    Meanwhile, all dated forward contracts at the interbank over-the-counter (OTC) segment appreciated on sustained increase in the foreign exchange reserves – spot rate, 1 month, 2 months, 3 months and 6 months contracts appreciated w-o-w by 0.03 percent, 0.08 percent, 0.16 percent, 0.31 percent and 0.30 percent to close at N305.70/$, N363.93/$, N367.82/$, N371.75/$, and 386.50/$ respectively.

    As the global crude oil prices retains upbeat, which should result in further build-up in foreign reserve, the Naira is expected to sustain stability this week.

     

  • Anchor Borrowers’ Programme: Delta fish farmers receive N1.2bn loans

    Fish farmers in Delta have received N1.2 billion loans under the Central Bank of Nigeria (CBN)’s Anchor Borrowers Programme (ABP).

    Mr Ambrose Nwabuzor, Loan Officer, Bank of Agriculture (BOA), Asaba, disclosed this in an interview with the News Agency if Nigeria in Asaba on Sunday.

    Nwabuzor said that the BOA secured the release of N1.2 billion to the fish farmers under the private window of the ABP.

    He said that the beneficiaries provided enough securities to guarantee the drawdown of the loan from the CBN.

    “Under the private window, we have secured the release of N1.2 billion to eight anchors that came together to form a fish farm.

    “Each of the anchors gave us an irrevocable post-dated cheque (security) and they profiled their farmers,” he said.

    He also said that the BOA was working to secure the release of another tranche of loan for the anchor off-taker in fisheries.

    The BOA loan officer said that the off-taker had also provided security for the loans and profiled his farmers under the scheme.

    According to him, the programme is compact in nature and should bring all the major stakeholders together in form of a chain.

    “An anchor off-taker is the most important person in this chain for without him the programme cannot succeed.

    “He must have the financial strength to pay input suppliers, profile and pay his farmers, mop all the farm produce, store, process, preserve and market them at convenient.

    “Here in Delta the ABP has both the private and the state windows,” he said.

    Nwabuzor said that the Delta Government keyed into the state window to produce oil palm, rice cassava and fish.

    He said that because the oil palm had long maturity period it was not part of the programme.

    “So, we have only three items in the programme, but unfortunately the state has not been able to secure an anchor off-taker for cassava and rice.

    “So, no money has been released to BOA for payment of input suppliers and farmers in the state,” Nwabuzor said.

    He, however, advised the state government to assume the position of an anchor off-taker under the scheme by providing BOA with an Irrevocable Standing Payment Order (ISPO).

    He said that the document that would ensure that the loans were recovered from the farmers.

     

  • Epileptic power affecting growth of businesses in Nigeria – CBN

    Epileptic power affecting growth of businesses in Nigeria – CBN

    The Central Bank of Nigeria (CBN) has identified epileptic power supply as a major hindrance to business growth in Nigeria.

    According to the CBN, the latest survey conducted by it on businesses in the fourth quarter of 2017 showed that 62.6 per cent of the surveyed firms identified inadequate supply of electricity as a major constraint to their activities.

    In the Business Expectations Survey Report for Q4 2017, the CBN stated that the surveyed firms confirmed poor power supply as a key problem, adding that other concerns highlighted by the respondents included unfavourable economic climate and unclear laws.

    The bank further noted that insufficient demand, high interest rate and competition were some other constraints to business activities in the fourth quarter of 2017.

    “The surveyed firms identified power supply (62.6 per cent), high interest rate (58.6 per cent), financial problems (56.8 per cent), unfavourable economic climate (46.1 per cent), unclear economic laws (42.7 per cent), insufficient demand (42.6 per cent) and competition (41 per cent) as the major factors constraining business activities in the current quarter,” the report stated.

    On exchange rate issues, the bank stated that majority of the respondent firms expected the naira to appreciate in the current and next quarters as the confidence indices stood at 1.1 and 39.2 points, respectively.

    It added that respondent firms expected the inflation rate to rise in the current quarter but fall in the next quarter, with confidence indices of 9.5 and -9.8 points for the first and second quarters of 2018, respectively.

    On some other highlights of the report, the bank stated that respondent firms expressed more optimism on the macro economy in the reviewed quarter when compared with the level recorded in the corresponding quarter of 2016.

    It stated that respondents’ outlook on the volume of total order, liquidity positions (financial conditions) in the last quarter of 2017 improved in relation to that of the corresponding quarter of 2016.

  • CBN injects $210m into foreign exchange market

    CBN injects $210m into foreign exchange market

    The Central Bank of Nigeria (CBN) has injected another 210 million dollars into the inter-bank Foreign Exchange Market to meet customers’ requests in various segments.

    Giving a breakdown of the intervention, the bank’s acting Director, Corporate Communications, Mr Isaac Okorafor on Monday in Abuja said that 100 million dollars was offered to authorised dealers in the wholesale segment of the market.

    He said that the Small and Medium Enterprises (SMEs) segment received the sum of 55 million dollars.

    Also, customers requiring foreign exchange for tuition fees, medical payments and Basic Travel Allowance (BTA), among others were allocated the sum of 55 million dollars.

    Okorafor said also that bidders who made bids in the wholesale window would receive value for the bids on Tuesday.

    He reassured the public that the CBN would continue to intervene in the interbank foreign exchange market in line with its resolve to sustain liquidity in the market and maintain stability.

    According to him, the steps taken so far by the CBN in forex management had yielded many positive results, particularly as it had to do with reduction in the country’s import bills and accretion to its foreign reserves.

    It will be recalled that the CBN last Friday, intervened in the Retail Secondary Market Intervention Sales (SMIS) to the tune of 262.5 million dollars, to cater for requests in the agricultural, airlines, petroleum products and raw materials and machinery sectors.

    Meanwhile, the naira continued its stability in the FOREX market, exchanging at an average of N360 to a dollar in the Bureau De Change segment of the market.