TheNewsGuru

Tag: foreign exchange

  • After losing billions in new FX policy, Dangote visits Tinubu

    After losing billions in new FX policy, Dangote visits Tinubu

    Businessman and Africa’s richest person, Aliko Dangote, on Friday, paid a visit to President Bola Tinubu at the Presidential Villa in Abuja.

    TheNewsGuru.com (TNG) reports this is coming after Bloomberg Billionaire Index (BBI) revealed that Dangote and some Nigerian billionaires lost fortunes in billions of Dollars, following the Central Bank of Nigeria’s (CBN) unification of exchange rate.

    Recall that the CBN on Wednesday introduced a floating exchange rate system in the foreign exchange market by giving traders at the Import and Export (I&E) window the freedom in the exchange rate determination.

    The floating exchange rate is a currency management system where the value of a currency, such as the Naira, is determined by market forces. Factors like commodity prices, interest rates, capital flows, and level of trade flow determine the exchange rate under the floating regime.

    By this development, buyers and sellers of foreign currency in the official FX market are now allowed to quote rates they find comfortable in the FX market. This is against previous practice where rates were dictated by the CBN.

    Following the new FX policy, the Naira on Thursday lost against the dollar at the Investors and Exporters window, exchanging N702.19 to the dollar.

    The local currency depreciated by 5.75 per cent when compared with N664.04 for which it exchanged for the dollar on Wednesday.

    The open indicative rate stood at N658.50 to the dollar on Thursday. An exchange rate of N791 to the dollar was the highest rate recorded within the day’s trading before it settled at N702.19.

    The Naira sold for as low as 461 to the dollar within the day’s trading. A total of 70.72 million dollars was traded at the official Investors and Exporters window on Thursday.

    However, the reason for the visit of Dangote to President Tinubu at the Villa is still unknown.

    Following the CBN’s unification of exchange rate, Dangote and some other Nigerian billionaires, including Abdulsamad Rabiu listed among the 500 richest men in the world, lost more than a combined $5.85 billion, according to the BBI.

    The index revealed that Dangote, President of Dangote Group, lost about $3.12 billion in the latest update, while Rabiu, CEO of BUA Group, was said to have lost $2.73 billion from his wealth in the first 24 hours after the float.

    Speculations are rife that the CBN might begin to supply foreign exchange to the market in the coming days.

    It was gathered that the CBN directed Deposit Money Banks to remove the rate cap on the naira at the official Investors’ and Exporters’ Windows of the foreign exchange market.

    This came barely two weeks after President Bola Tinubu promised to unify the nation’s multiple exchange rates and less than a week before the suspension and detention of CBN Governor Godwin Emefiele, whose unorthodox monetary policies had become a stumbling block to investors and the economy.

    The move has been hailed by some financial experts and economists who made it known that the move would unify the country’s multiple exchange rates and sanitise the FX market.

    The development means buyers and sellers of foreign currency in the official FX markets are now allowed to quote rates they find comfortable in the FX market, as against the previous practice where rates were dictated by the Central Bank of Nigeria.

    Meanwhile, at the parallel market on Thursday, the naira closed flat at 757/dollar, according to currency dealers in Kano, Abuja and Lagos.

  • FG should take tough stance on oil thieves, pipeline vandals – LCCI

    FG should take tough stance on oil thieves, pipeline vandals – LCCI

    The Lagos Chamber of Commerce and Industry  (LCCI) has lamented the continuous decline in oil revenue in the country due to oil theft and pipeline vandalism.

    LCCI appeals to the government to address the problems of oil theft and pipeline vandalism with a drastic measure and sterner approach.

    It stated that if oil theft and pipeline vandalism are tackled, Nigeria will earn more from foreign exchange and increase revenue.

    LCCI also urged the government to borrow from cheaper sources to reduce the burden of debt servicing, and take a decisive step toward removing fuel subsidies.

    In a statement signed and released  by its Director General, Dr. Chinyere Almona, titled, “The Nigerian Economy at 62: The Need for Big Decisions,” on Saturday, it said the oil sector had consistently recorded negative growth for the ninth consecutive quarter, contracting again by -11.8 percent year-on-year in Q2 2022, following a higher contraction of -26 percent year-on-year in Q1.

    “If oil revenue makes up more than 80 percent of government revenue, we expect the government to tackle the menace of oil theft and pipeline vandalism with a sterner approach,” it said.

    The LCCI explained that the non-oil sector grew by 4.8 percent year-on-year in Q2 ‘22 against 6.1 percent year-on-year in Q1 ‘22. It said the growth of 1.2 percent recorded for agriculture and the three percent for manufacturing were comparatively low when compared with other sectors that grew at above five percent.

    “And with the excruciating burden from debt service, subsidy payments, and worsening insecurity, many more production activities may be constrained in the coming months. The Federal Government needs to sustain its targeted interventions in selected critical sectors like agriculture, manufacturing, export infrastructure, tackling insecurity, and free up more money from subsidy payments.

    “We urge the government to tackle oil theft to earn more foreign exchange, borrow from cheaper sources to reduce the burden of debt servicing, and take a decisive step toward removing fuel subsidies,” the statement read in part.

    The organization also describes poor power supply and insecurity as other major challenges confronting businesses in the country, it, therefore, urged the country’s government to decentralize the national grid

    It said, “Poor power supply remains a major burden on businesses. It is one area in which the trend since independence has been that of progressive decline. This development impacted negatively on investment over the past few years with increased expenditure on diesel and petrol by enterprises. With the frequent collapses recorded by the national grid, we can no longer rely on a centralized power source. The way to go is renewable energy and decentralizing the national grid.

    It warned that without effective and sustained protection and support for the real sector, and a dramatic improvement in infrastructure, the outlook for the sector would remain gloomy, particularly for the small-scale industries struggling in the face of cheap imports into the country and high production and operating cost in the domestic economy.

    It added, “The security situation in the country deteriorated in the last year, assuming a very worrisome dimension. Access to markets in the troubled parts of the country has been reduced for many enterprises, with negative consequences for investors’ confidence.

    “Our nation is at a cross-road and in dire need of big decisions to drive the drastic transformation the economy requires to return to economic prosperity. Our nation, Nigeria, has come a long way and is too big to fail.”

  • Naira loses against dollar, exchanges at 424.88

    Naira loses against dollar, exchanges at 424.88

    The Naira on Wednesday lost to the green back at the Investors and Exporters window, exchanging at 424.88 to the dollar against 421.00 traded on Tuesday, a 0.80 per cent depreciation.

    The open indicative rate closed at N421.80 to the dollar on Wednesday.

    An exchange rate of N444.00 to the dollar was the highest rate recorded within the day’s trading before it settled at N424.88.

    The naira sold for as low as 410 to the dollar within the day’s trading.

    A total of 112.83 million dollars was traded in foreign exchange at the official Investors and Exporters window on Wednesday.

  • Foreign exchange inflow hits $91b in 2017 – CBN report

    Foreign exchange inflow hits $91b in 2017 – CBN report

    The Central Bank of Nigeria (CBN), says the aggregate foreign exchange inflow into the country stood at $91 billion in 2017.

    The bank disclosed in its 2017 annual report released on Thursday that the figure was an increase of 45 per cent from $62.75 billion in 2016.

    The bank also said the figure surpassed the total outflow by $57.32 billion in the period.

    According to the bank, inflow through the CBN was $42.17 billion, while inflow through autonomous sources amounted to $48.33 billion.

    In percentage terms, inflow through the CBN accounted for 46.3 per cent, while autonomous sources took 53.7 per cent.

    Also, aggregate foreign exchange outflow, from the economy, increased by 31.8 per cent to U$33.68 billion, higher than the $25.55 billion in 2016.

    The report said the outflow through the CBN accounted for 90.7 per cent, about $30.55 billion. It was $23.16 billion in 2016.

    Outflow via autonomous sources was calculated at $3.13 billion

    The increase was attribute to the increased intervention by the CBN in the inter-bank and Bureau De Change (BDC) segments of the foreign exchange market.

  • CBN boosts foreign exchange market with $210m

    …as naira exchanges for N362/$1

    In another round of intervention, the Central Bank of Nigeria (CBN) on Tuesday injected 210 million dollars into the inter-bank Foreign Exchange Market to boost liquidity in the system.

    The acting Director, Corporate Communications, Mr Isaac Okorafor, in a statement in Abuja, said the CBN allocated 100 million dollars to dealers in the wholesale sector.

    He said also the Small and Medium Enterprises (SMEs) segment and invisibles received 55 million dollars each.

    Okorafor, said the continued interventions in the interbank foreign exchange market was mainly to ensure sustained liquidity and stability in the market.

    According to him, the interventions by the CBN had impacted the market positively and guaranteed a stable exchange rate for the Naira, which has since stabilised the foreign exchange market.

    He reiterated that the Bank’s interventions had reduced the country’s import bills and led to accretion to its foreign reserves.

    Meanwhile, the naira exchanged at N362 to a dollar in the Bureau De Change segment of the market.

  • CBN injects fresh $210m into foreign exchange market

    CBN injects fresh $210m into foreign exchange market

    …as Naira exchanges for $1/N360

    The Central Bank of Nigeria (CBN) has provided fresh 210 million dollars to meet customers’ requests in various segments of the foreign exchange market.

    The Bank’s Acting Director, Corporate Communications Department, Mr Isaac Okorafor in a statement on Monday in Abuja, said that 100 million dollars was offered to authorised dealers in the wholesale segment of the market.

    Okorafor said that the Small and Medium Enterprises (SMEs) segment got 55 million dollars, while customers in need of foreign exchange for tuition fees, medical payments and Basic Travel Allowance (BTA), were allocated 55 million dollars.

    Okorafor reiterated the CBN’s commitment to continuous intervention in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability.

    He said that the CBN would continue to strategically manage the foreign exchange market with a view to reducing the country’s import bills and halting depletion of its foreign reserves.

    On Feb. 12, the CBN had intervened to the tune of 210 million dollars to cater for requests in the various segments of the market.

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

  • 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.

     

  • Again, CBN injects $142.5m into foreign exchange market

    …as Naira exchamges for N364/$1

    The Central Bank of Nigeria (CBN) on Monday injected 142.5 million dollars into the inter-bank foreign exchange, days after intervening in the retail segment of the market with 254.3 million dollars.

    The spokesperson of the apex bank, Mr Isaac Okorafor, in a statement, said the CBN would continue to carry out its regular mediation in the market to keep the market liquid and guarantee the international value of the naira in line with its mandate.

    A breakdown of Monday’s intervention indicates that the Bank offered 100 million dollars to dealers in the wholesale segment, while it allocated 23 million dollars to the Small and Medium Enterprises (SMEs) segment.

    Also, for those requiring foreign exchange for invisibles such as tuition fees, medical payments, business and personal travel allowances received 19.5 million dollars.

    Okorafor said the CBN would not relent in ensuring transparency and efficiency in the sale of Forex.

    According to him, the Bank has mandated dealers to make public their forex utilisation.

    He, therefore, urged all stakeholders to continually play their roles to guarantee transparency in the market.

    TheNewsGuru.com reports that the CBN last Friday intervened in the retail segment of the forex market to the tune of 254.3 million dollars following bids received from forex dealers by the apex Bank.

    The figure sold by the Bank was for companies in the raw materials, agricultural, airline and petroleum industry.

    Meanwhile, the naira maintained its stand at the Bureau de Change (BDC) segment of the forex market, exchanging at an average of N364 to a dollar in Abuja.

     

     

     

  • NCC laments telecoms poor quality of service, promises improvement

    NCC laments telecoms poor quality of service, promises improvement

    The Nigerian Communications Commission (NCC) has promised Nigerian telecoms consumer improved telecommunications services while lamenting the deterioration of Quality of Service (QoS) in the first quarter of the year 2017.

    “We have seen a deterioration of quality of service across all operators,” NCC Executive Vice Chairman, Prof. Umar Garba Danbatta, noted at a Special Media Interaction held at the Sheraton Hotel and Towers, Ikeja Lagos yesterday.

    ImageFile: NCC laments telecoms poor quality of service, promises improvement
    NCC EVC, Prof. Umar Garba Danbatta assures of improved QoS

    TheNewsGuru recalls the Minister of Communications, Barr. Adebayo Shittu had in January, while inaugurating the board of the NCC, charged the Commission to deliver on QoS. Consequently, the NCC dedicated the year 2017 to the protection of the Nigerian telecom consumer

    “I can be able to state here categorically in terms of QoS that I know which operators are doing well, fairly well and those that are not doing well at all,” the EVC NCC said, adding: “But, we are waiting for the analysis of the QoS key performance index (KPI)”.

    “The industry average for call drop rate is 1.37 percent while it is supposed to be 1 percent. The call success rate is 90 percent, 8 percentage short of the specified standard,” the EVC further stated.

    He said, “We intend to escalate the issue to the next level. When we engage the consultants maybe this month, we intend to showcase that QoS has improved slightly with evidence because we have the figures but the QoS is still below the standard set up by the NCC. If we do not see any improvement, then, we can resolve to sanctions”.

    “We may not reach the stipulated standard in a month or two but the compliance streak is to further compel telecoms operators to improve on QoS,” he added.

    The NCC, however, noted that challenges of broadband penetration in Nigeria need be surmounted before a total QoS can be guaranteed.

    He outlined the major challenges facing broadband penetration in Nigeria to include right of way, vandalization of telecoms infrastructure, power supply and foreign exchange.

    He however noted that arrangements are underway to making foreign exchange available for telecoms operators.

  • Foreign Exchange reserves hit $25.5bn as forex scarcity continues

    Latest data on the website of the Central Bank of Nigeria, CBN confirms that Nigeria’s foreign exchange reserves have risen to over three-month high of $25bn.

    The reserves according to the CBN rose to $25.2bn on December 19.

    Since September, the reserves have gradually dipped low. According to the CBN the reserves recodrded a similar high figure on September 8 when it had a balance of $25.16bn.

    The country’s fast-depleting reserves had recorded $23.89bn low on October 19.

    The reserves have dropped by 15.9 per cent from last year when they closed at $29.7bn.

    The CBN data showed that the foreign exchange reserves declined to $24.92bn on September 14 from $25.11bn on September 9.

    At the end of November, the reserves stood at $24.77bn, up from $23.95bn on October 31.

    Currency and economic experts are not sure if the tiny upticks in the external reserves’ level are sustainable amid the falling naira and acute shortage of dollar in the foreign exchange markets.

    The CBN had on June 20 lifted its 16-month-old currency peg and auctioned about $4bn on the spot and futures market to clear a backlog of dollar demand to help boost interbank market trading.

    The reserves had fallen from $26bn on August 4, 2016 to $25.97bn on August 5 as the central bank stepped up dollar sales to boost liquidity at the interbank market and support the ailing naira.

    The naira, which touched an all-time low of 365.25 per dollar on August 18 at the official market, has consistently closed around 305.5 in recent weeks.

    However, in the 2017 budget, President Muhammadu Buhari pegged the foreign exchange rate at N305 to one United States Dollar.