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Tag: Dollar

  • Naira value falls to N473 against Dollar at parallel market

    Naira value falls to N473 against Dollar at parallel market

    The naira suffered further setback at the parallel market and Investors and Exporters forex window on Tuesday.

    According to figures obtained from Bureau De Change operators, the naira exchanged to the dollar for 473/$ at the parallel market.

    It had earlier gained in recent times after it closed the year 2020 at 467/$.

    At the I&E window, the naira fell by 0.17 per cent to close at 394/$ on Tuesday.

    It reached a low of 401 at the I&E window at the close of 2020.

    The Central Bank of Nigeria however maintained the official exchange rate at N379/$ on its website.

    The Association of Bureaux De Change Operators of Nigeria recently appealed to the CBN to make BDCs payout agents for diaspora remittances.

    The President, ABCON, Alhaji Aminu Gwadabe, said the apex bank should leverage the over 5,000 licensed BDCs across the country to get dollars seamlessly to beneficiaries.

    Gwadabe said this would help in providing a more convenient channel for Nigerians in the diaspora to remit funds back to the country to boost economic development.

  • Polaris Bank Commences payout in US dollars to money transfer recipients

    Polaris Bank Commences payout in US dollars to money transfer recipients

    Polaris Bank has commenced payment of US dollars to all beneficiaries of money transfer across all its branches in Nigeria.

    According to a notice from Polaris Bank sent to its customers on Sunday, 6 December 2020, beneficiaries of money transfer can now receive their remittance in US dollars in cash or directly into a domiciliary account in the Bank. The service is also open to both account and non-account holders alike.

    This amendment to the payout policy is in line with the Central Bank of Nigeria’s recent directive which allows recipients of money transfer from anywhere in the World to receive their funds in US dollars from any branch of the Bank in the country.

    Polaris Bank’s Group Head, Product and Market Development, Mrs. Adebimpe Ihekuna further disclosed that all beneficiaries are able to receive their funds conveniently in dollars within minutes with a valid identification, including BVN.

    She urged Nigerians in the Diaspora and their beneficiaries to take advantage of the seamless remittance dollar cash payout option service in the Bank to receive their transfers this festive season.

    Adebimpe Ihekuna explained that Polaris Bank has existing relationship with all leading and licensed global money transfer operators, which makes it easy for Nigerians to receive money through Polaris Bank. She further added that the Bank’s large network of over 300 branches and dedicated money transfer locations across major cities makes the option of receiving transfers through Polaris Bank very convenient for beneficiaries.

    With over 15 million Nigerians in the Diaspora and an estimated $25 billion in annual remittances, Nigeria is the 5th largest receiver of diaspora remittances in the World.

    Polaris Bank is a future-determining bank committed to the delivering industry-defining products for individuals and businesses.

  • Gov Obaseki’s aide under fire for N500

    Gov Obaseki’s aide under fire for N500

    Godwin Obinyan, a senior special assistant on social media to Governor Godwin Obaseki has come under fire over a tweet he made about being able to feed with just N500.

    Nigerians on Twitter dragged the Governor’s social media aide, describing him as insensitive and distanced from the plight of the ordinary Nigerian.

    Obinyan said with N500 he would be able to eat N200 rice, N100 beans and N200 assorted meat but that with $1 he can never do it in America.

    “How is he comparing what N500 does in Nigeria to what $1 does in America? Why can’t he compare N1 with $1? Like how do they become SA to Governor?” one Twitter user queried.

    Following criticism of the social media aide, he tried to expatiate his claim, saying, “purchasing power is what you evaluate and not the exchange rate”.

    https://twitter.com/Ody_johnson/status/1334260425546985472?s=19

  • I almost cried today when I changed Naira to Dollars – Davido

    I almost cried today when I changed Naira to Dollars – Davido

    Nigerian superstar singer, David Adeleke, popularly called Davido, has expressed his frustration with the rising dollar rate in Nigeria.

    The Fem singer took to his Twitter account to lament, saying that he almost cried when he changed dollars to naira.

    Davido, who is known for wealth and influence on social media, once said he had made a lot of money and he was tired of making money in a video.

    However, in his tweet today, the singer stated that he almost cried when he changed his dollars to naira at the rate of N500 to a dollar.

    The foreign exchange crisis in the country has generated concerns in recent weeks, with the pressure on the naira at the parallel market, despite the assurances by the Central Bank of Nigeria.

    The parallel market had responded to the fresh devaluation of the naira amidst growing foreign exchange illiquidity. The local currency weakened to N500/$ at the black market over the weekend.

    The Central Bank of Nigeria had adjusted the value of the naira by N6 against the dollar on Friday. That was the third time the naira would be officially devalued this year.

    In a weekly exchange rate for disbursement of proceeds of International Money Transfer Service Operators issued on Friday, market dealers, including bureau de change players and service providers, were advised to add N6 to existing rates.

  • Naira continues to decline against dollar across markets

    Naira continues to decline against dollar across markets

    THE naira depreciated against the dollar across the official and parallel markets yesterday with many pundits predicting further decline of the national currency.

    At the official Investors and Exporters (I & E) Window, naira declined by 2.0 per cent to N393.25 per dollar, dropping from previous position of N385.50 per dollar. Most participants at the I & E window maintained bids between N382.00 and N394.83 per dollar.

    At the parallel market, naira depreciated by 0.8 per cent to N487.00 per dollar.

    Senior Research Analyst, FXTM, Lukman Otunuga said the naira was poised to decline further as the Central Bank of Nigeria (CBN) has limited capacity to sustain its restrictive foreign exchange (forex) management.

    “Although the Central Bank of Nigeria has devalued the Naira by 20 per cent in 2020 in an effort to unify its exchange rates, the naira could be poised to decline further as falling reserves complicate the Central Bank of Nigeria’s (CBN) efforts in defending the local currency,” Otunuga said.

    He said Nigeria’s economic picture remains clouded by external and domestic risks noting that while dollar shortages continue to punish the private sector, rising inflationary pressures amid border closures and COVID-19 related disruptions have hit consumers.

    He explained the negative impact of the decline in crude oil price and production on the Nigerian economy, pointing out that while crude oil contributes less than 10 per cent of the Gross Domestic Product (GDP), it accounts for some 90 per cent of foreign exchange earnings and half of government revenues.

    According to him, Nigerian economic situation was compounded by its dependence on oil revenue. As oil production fell to 1.67 million barrels a day amid OPEC supply cuts and prices struggled to break away from the sticky $40 level, export earnings evaporated.

    “Essentially, the collapse in oil prices in the wake of the pandemic has drained government coffers,” Otunuga said.

    He noted that the current rate at the parallel markets was the weakest level in more than six weeks as CBN’s intervention in the official window failed to meet demand.

  • Nigeria’s Naira declines to lowest level in weeks

    Nigeria’s Naira declines to lowest level in weeks

    Nigeria’s currency, the Naira closed the week, falling to its weakest level in six weeks as Central Bank of Nigeria interventions failed to save it against battering by US Dollar.

    On Friday, the Naira exchanged for between N460 and N470 per dollar, at the parallel market, the lowest since September 29, ngnrates.com and abokifx.com, reported.

    Rates at the BDC were only slightly better: the exchange rate was N455/N468.

    However, the Central Bank offered the dollar at 382.10 per dollar on the spot market, where it sells limited amounts of the greenback bank to importers.

    In early October, the Naira strengthened to N440 to a dollar in the unofficial market.

    This coincided with when the CBN began weekly interventions in late September, after Nigeria opened up international travel following the lifting of Covid-19 restrictions.

    But all the gains have vanished, as pent up demands for dollar chased the little available.

    The money available in the official window is insufficient to meet demand, Julius Tayo-Olufemi, chief executive officer of Cephas Grace International Ltd., which imports home appliances, told Bloomberg by phone.

    “On a monthly basis, I need about $100,000 to $150,000 and the maximum I can get at the controlled price is $20,000. So I have to sort out the remaining balance myself,” Tayo-Olufemi said.

    The regulator has always increased intervention sales to money changers, but “they are a bit hampered this time around,” said Omotola Abimbola, analyst at Chapel Hill Denham.

  • Naira further strengthens againsts dollar amid CBN’s intervention

    Naira further strengthens againsts dollar amid CBN’s intervention

    The naira strengthened to N435 to a dollar at the parallel market yesterday as against about N480 to a dollar it had been trading in the past days.

    This showed a gain of N45, representing about 9.3 per cent rise.

    Currency dealers attributed the development to the planned resumption of forex sales by the Central Bank of Nigeria (CBN) to operators of Bureau De Change (BDC), which according to them is expected to bolster dollar liquidity in the market.

    The apex bank is expected to resume forex sales to BDCs on Monday

    It had announced its intention to resume forex sales to the retail segment of the market, but was forced to postpone it because of the extension of the date for resumption of international flights to September 5.

    Speaking yesterday with journalists, the President, Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, said the announcement of the plan to resume forex sales to the currency dealers was the major factor that led to the gain recorded by the nation’s currency against the greenback.

    He said: “The plan to resume forex sales to BDCs was what broke the camel’s back. Dollar supply to BDCs is a potent weapon to fight against speculation. For those still speculating in the market, they are already burning their fingers and taking losses.
    “So, my advice is that when you don’t have a genuine and effective need to use dollars, stop stockpiling the currency. From what we are seeing, this trajectory is going to continue and I advise members of the public to always buy when you have a purpose for it and not buying to keep.

    “What we saw in the market in the past few weeks was not a true reflection of the value of the naira against the dollar. We saw, even during the lockdown when flights were not flying, everybody literally became a forex dealer. It is unfortunate. That cannot happen in other countries. When you don’t need to make payments abroad, what are you hoarding dollars for? It’s unfortunate.”
    He expressed optimism that once his members re-commence business by Monday, the naira exchange rate at the parallel market would improve further.

    “With just a pronouncement, you can see the impact. So, once we are back, we expect the naira to appreciate further,” he added.
    The currency dealer foresees the naira strengthening further to “between N415 to N420 to a dollar next week,” saying “the trajectory is expected to continue towards the unified rate of the BDC and Investors and Exporters window, which is about N386 to a dollar.”

    Gwadabe added: “That is the target that all the operators in the forex market, that is the BDCs, the banks, the I & E window, are targeting. So, speculators like I told you would continue to count their losses. This is not the time to hoard, to speculate or even to undermine the dexterity of CBN management.”
    He also urged security agents to check the illegal movement of dollar cash with the resumption of international flights on September 5.

    CBN had in a circular dated August 27, 2020, addressed to all authorised dealers, BDC operators and members of the public, said the resumption of forex sales was part of efforts to enhance accessibility of the greenback, particularly to travellers following the announcement of the limited resumption of international flights.

    Purchase of forex by BDCs shall be on Monday, and Wednesdays in the first instance, it had stated.
    According to the apex bank, BDCs are expected to “ensure that their accounts with the banks are duly funded with the equivalent naira proceeds on Fridays and Tuesdays accordingly.”

  • Nigerians paid N765 billion as bribes in 2019 – UNODC

    Nigerians paid N765 billion as bribes in 2019 – UNODC

    About N675 billion was paid in cash bribes to public officials in Nigeria in 2019. This is according to a survey by the United Nations Office on Drugs and Crime (UNODC).

    This figure corresponds to 0.52 per cent of the entire Gross Domestic Product (GDP) of Nigeria.

    In the 2019 survey titled, “Corruption in Nigeria: patterns and trends,” it was noted that “Out of all Nigerian citizens who had at least one contact with a public official in the 12 months prior to the 2019 survey, 30.2 per cent paid a bribe to, or were asked to pay a bribe by, a public official. This means that, although still relatively high, the prevalence of bribery in Nigeria has undergone a moderate, yet statistically significant, decrease since 2016, when it stood at 32.3 per cent.”

    This is UNODC’s second survey on corruption as experienced by the population.

    The survey has it that “Three out of the country’s six zones (North-East, North-West and South-West) have recorded decreases in the prevalence of bribery since 2016, with the North-West experiencing a considerable (and statistically significant) decline in the prevalence of bribery, from 36 to 25 per cent, while the two other zones recorded smaller decreases. By contrast, the North-Central, South-East and South-South zones recorded further increases in the prevalence of bribery from 2016 to 2019.”

    The UNODC stated that although the prevalence of bribery may have decreased, the frequency of bribe-paying has not.

    It was observed that “Although a smaller percentage of Nigerians that had contact with public officials paid bribes, or were asked to pay bribes, those who did pay bribes continued to do so quite frequently: in 2019, Nigerian bribe-payers paid an average of six bribes in the 12 months prior to the survey, or one bribe every two months, which is virtually the same as the average of 5.8 bribes paid per bribe-payer in 2016.

    “As a result, it is estimated that some 117 million bribes are paid in Nigeria on a yearly basis, the equivalent of 1.1 bribes per adult.”

  • Dollar slips on Fed prospects; safe-haven Swiss franc, gold shine

    Dollar slips on Fed prospects; safe-haven Swiss franc, gold shine

    The dollar hit a multi-month low against the euro and the yen on Tuesday on the prospects of monetary easing by the Federal Reserve while the safe-haven Swiss franc and gold rose on Middle East tensions.

    The euro hit a three-month high of 1.14105 dollar, having gained 2.0 per cent from a two-week low of 1.1181 dollar touched a week ago as the dollar has lost steam. It last stood at 1.1406 dollar, up slightly on the day.

    The U.S. currency slipped 0.35 per cent to 106.93 yen its lowest since its flash crash in early January.

    The dollar index against a basket of six major rivals fell to its lowest level in three months to 95.943, having lost 1.7% during the latest five sessions.

    Selling in the dollar has accelerated after the U.S. Federal Reserve last week signalled it would cut interest rates before year-end on mounting worries about fallout from tariff wars President Donald Trump is waging against China and other trading partners.

    U.S. bond yields dropped on Monday, with money market derivatives increasing bets on a 50-basis-point rate cut next month. A 25 basis-point cut is already fully priced in.

    Fed Chairman Jerome Powell and a few other of its policymakers are due to speak later on Tuesday.

    Investors are waiting to see whether Trump and Chinese President Xi Jinping would at least call a truce in their trade war when they meet at the G20 summit in Osaka late this week.

    Trump considers his meeting with Xi an opportunity to “maintain his engagement” and see where China is on their trade dispute, a senior U.S. official said on Monday.

    Senior Chinese and U.S. trade officials spoke by telephone on Monday.

    Kazushige Kaida, head of forex at State Street Global Markets in Tokyo, said he believes the current market consensus is that the two leaders are “unlikely to agree on a deal”.

    If there’s no trade agreement, Trump’s administration could levy tariffs on an additional 300 billion dollars of Chinese imports as early as next month, a step that would cement expectations of a large rate cut by the Fed.

    The dollar’s weakness was the most notable against traditional safe-haven assets, reflecting concerns about tensions between the United States and Iran.

    Trump targeted Iranian Supreme Leader Ayatollah Ali Khamenei and other top Iranian officials with sanctions on Monday, taking a dramatic, unprecedented step to increase pressure on Iran, after Tehran’s downing of an unmanned American drone near the Strait of Hormuz.

    The dollar slipped to 0.9710 franc, its lowest since late September.

    The Swiss currency held firm against the euro to 1.1072 per euro, within touching distance of 1.1057 hit its highest on Thursday since July 2017.

    Gold also shot up 0.85 per cent to 1,431.2 dollar per ounce, reaching its highest levels in nearly six years.

    Even the price of bitcoin held firm, staying near a one-year high above 11,000.

    “Assets that can be used as an alternative means of settlement are favoured, as the dollar is being shunned. Geopolitics and the Fed are two main reasons behind this,” said Ayako Sera, market economist at Sumitomo Mitsui Trust Bank.

    The British pound remains dogged by Brexit concerns as Eurosceptic Boris Johnson is seen as likely to win a majority of votes from Conservative party members who will decide the next leader and prime minister.

    Johnson reiterated his promise to take Britain out of the European Union on Oct. 31, with or without a deal.

    The pound fetched 1.2743 dollar, capped by resistance around 1.2760-65 dollar.

    Against the euro, the pound was on the back foot at 89.455 pence per euro, near five-month lows of 89.74 set a week ago

  • Naira withstands pressure, appreciates against dollar at most market segments

    Naira withstands pressure, appreciates against dollar at most market segments

    It was a sterling performance for the Naira against the United States Dollar at the foreign exchange (forex) market last week.

    This was despite huge pressure the local currency came under in the build up to the rescheduled presidential and parliamentary elections, which took place on Saturday, February 23, 2019.

    Recall that a recent glitch at popular search engine, Google on Friday evening exchanged the dollar for N184, N54 and N28.

    However, at the Investors & Exporters (I&E) forex window, the local currency appreciated by 0.04 percent to close at N361.49 to a Dollar.

    Also, the Naira Dollar exchange rate at improved by 0.04 percent to close at N356.97/$ amid weekly injections of $210 million by Central Bank of Nigeria (CBN) into the foreign exchange market via the Secondary Market Intervention Sales (SMIS).

    A breakdown of this intervention showed that $100 million was allocated to Wholesale SMIS, $55 million was allocated to Small and Medium Scale Enterprises and another $55 million was sold for invisibles.

    According to Cowry Asset, at the parallel market and Bureau De Change (BDC) market segments last week, Naira appreciated by 0.55 percent and 0.56 percent to close at N360/$ and N357/$ respectively.

    Meanwhile, the Naira/Dollar exchange rate sustained gains for most of the foreign exchange forward contracts – 1 month, 2 months and 3 months rates moderated by 0.16 percent, 0.16 percent and 0.06 percent respectively to close at N364.07/$, N367.06/$ and N370.47/$ respectively.

    However, the Naira/Dollar exchange rate performance badly for spot rate and 12 months forward contracts, declining by 0.02 percent and 0.03 percent to close at N306.80/$ and N412.66/$ respectively.