TheNewsGuru

Tag: Forex Market

  • CBN lifts forex ban on 43 Items, to intervene in FX market

    CBN lifts forex ban on 43 Items, to intervene in FX market

    The Central Bank of Nigeria (CBN) has lifted the forex ban on 43 items and also promised to intervene in the FX market from “time to time”.

    Recall that the apex bank  in 2015 restricted the items from accessing FX from the I&E window, saying they were not valid for foreign exchange and could be produced in the country. Items affected include rice, cement, palm kernel, meat and processed meat products, poultry, soap, and cosmetics among others.

    However, Isa AbdulMumin  the bank’s Director of Corporate Communications said the ban has been lifted.

    He said “As part of its responsibility to ensure price stability, the CBN will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease,” the Thursday statement read.

    “Importers of all the 43 items previously restricted by the 2015 Circular referenced TED/FEMFPC/GEN/O1/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market.”

    “The Central Bank of Nigeria (CBN) will continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market to ensure market forces determine exchange rates on a Willing Buyer- Willing Seller principle,” he added.

    “The CBN reiterates that the prevailing Foreign Exchange (FX) rates should be referenced from platforms such as the CBN website, FMDCQ, and other recognised or appointed trading systems to promote price discovery, transparency, and credibility in the FX rates.

    “As part of its responsibility to ensure price stability, the CBN will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease.”

    “The CBN has set as one of its goals the attainment of a single FX market. Consultation is ongoing with market participants to achieve this goal,” CBN added.

  • Again, Naira depreciates, banks hit by dollar shortage

    Again, Naira depreciates, banks hit by dollar shortage

    The Naira has continued to depreciate against the dollar on the Investors and Exporters (I&E) and parallel markets.

    The data and information gathered from both segments showed.

    Findings show that the currency has lost  N100 after sliding from 860/$ to 960/$ at the parallel market as of Friday.

    Recall that the Central Bank of Nigeria (CBN) enabled the free float of the naira against other global currencies in June, the naira had traded at 471/$ at the Investor & Exporter window.

    However, on June 13, a day after the regulator floated the local currency, the naira rose to 664/$ the next day.

    Checks show that the currency has now slided to an all time low of 925/dollar in Lagos.

    On Friday, the naira reached a high of 799/$ before closing at 740.60/$ at the I&E forex window. However, at the parallel market, the naira closed at 930/dollar in Lagos and 960/$ in Abuja at the parallel market.

    The development came as dollar shortage hits banks with several lenders complaining of not having enough greenback to meet customers’ demand.

    At the parallel market, currency dealers also complained of dollar shortage.

    Bank officials said the CBN removal of cash deposit limits on domiciliary accounts in June had led to the repatriation of funds through the banks.

    As a result, he said the demand for the dollar had outweighed the supply significantly.

    “Some of the dollars are being repatriated through the banks but the demand is still higher than supply because everyone is still sourcing for dollar for imports, PTA, BTA, others,” an official of a lender, who chose to speak on condition of anonymity because he was not authorised to speak on the matter, said,

    “Nigerians are still hoarding dollar, customers are still hoarding FX because they don’t trust the policy. Banks are not getting forex supply from the CBN regularly like before,” he added.

    The President, Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, said that liquidity squeeze in the FX market had continued to put the naira under heavy attack from speculators.

    He said, “The dwindling supplies in the I&E window shifted the demand to the parallel market where volatility and spikes is most pervasive. The entire forex market is plagued by liquidity shortages.

    “The banks, as a result of the supply shortages, are limiting their available position for the financing of visible letters of credit and abandoning the invisible request like PTA, school fees, medicals of their clients and inadvertently adding more pressure in the parallel market.”

    He added, “As it is, most licensed BDCs due to their demand for KYC requirement have lost their clients to the parallel and undocumented space with no regulation and standardisation. It is indeed a difficult time for most of our members as we are excluded from the harmonised market.”

    Proffering solutions, Gwadabe said Nigerians should aspire to have a stable exchange rate devoid of illegal economic behaviour like arbitrages, hoarding and panic buying.

    “ABCON is desirous to partner the apex bank and the Federal Government for an elaborate dialogue and engagement to champion paths to naira recovery,” he said.

     

  • Naira loses marginally, exchanges N461.50 to dollar

    Naira loses marginally, exchanges N461.50 to dollar

    The Naira lost marginally as it exchanged at N461.50 to the dollar at the Investors and Exporters window on Monday.

    The figure represented a decrease of 0.05 per cent compared with the N461.25 it exchanged after the close of business on Feb. 18.

    The open indicative rate closed at N461.60 to the dollar on Monday.

    An exchange rate of N462.06 to the dollar was the highest rate recorded within the day’s trading before it settled at N461.50.

    The Naira sold for as low as N440 to the dollar within the day’s trading.

    A total of 40.28 million dollars was traded at the official Investors and Exporters window on Monday.

     

  • CBN releases $543m, CNY 63m into Forex market

    The Central Bank of Nigeria (CBN) has boosted the operations of the inter-bank foreign exchange market with about $543.22 million and CNY63.21 million after two days interventions.

    The apex bank in a statement on Friday that the interventions on Thursday and Friday were in the wholesale as well as the Small and Medium Enterprises (SMEs) segments of the FOREX window.

    At Thursday’s trading, CBN said it offered about $100 million in wholesale interventions, in addition to another $55 million allocated the SMEs FOREX window.

    Also, the invisibles’ window, which caters for customers requiring foreign exchange for business/personal travel allowances, tuition fees for schools and medical bills, received about $55 million.

    On Friday, the bank said a fresh $323.22 million was injected in the interbank retail Secondary Market Intervention Sales, apart from about CNY 63.21 million (Chinese Yuan) sold in the spot and short-tenored forwards, arising from bids received from authorized dealers.

    CBN spokesperson, Isaac Okorafor, said the interventions were a further demonstration of the bank’s commitment to maintain the country’s external reserves to safeguard the international value of the Naira in line with the Bank’s mandate.

    Okorafor said the bank’s management of the FOREX market had entrenched transparency in the market and continued to strengthen the value of the naira against other major currencies.

    On the sale of Chinese Yuan (Renminbi), Mr. Okorafor said this was in line with the CBN guidelines, which stipulate that it would be for the payment of Renminbi denominated Letters of Credit for agriculture as well as raw materials.

    The availability of the Chinese currency, Mr Okorafor said, would ease the pressure on the Nigerian foreign exchange market due to increased demand.

    He attributed the relative stability in the foreign exchange market to the interventions by the CBN as well as the sustained increase in crude oil prices in the international market in recent times.

  • CBN releases $340m, CNY69m into forex market

    The Central Bank of Nigeria (CBN), on Friday, provided 340 million dollars and 69 million Chinese Yuan (CNY) to customers seeking foreign exchange in the agricultural and raw material sector.

    The acting Director, Corporate Communications, Mr Isaac Okorafor, said the sales in the Chinese Yuan was done through a combination of spot and 15-day tenor.

    He said the Chinese Yuan was made available only to customers with Renminbi denominated Letters of Credit for agriculture as well as raw materials and machinery.

    Okorafor said the availability of Renminbi would eventually ease pressure on the Nigerian foreign exchange market.

    He attributed the current stability in the foreign exchange market to the continued intervention of the CBN as well as the sustained increase in crude oil prices in the international market.

    The apex bank remained committed to ensuring all sectors continued to enjoy access to foreign exchange required for business, whether in US dollars or Chinese Yuan, the CBN spokesman said in a statement.

    It will be recalled that the CBN on July 20, announced the commencement of its intervention in the sale of foreign exchange in CNY.

    The sales marked the commencement of the Bilateral Currency Swap Agreement (BCSA) signed with the People’s Bank of China (PBoC) on April 27, 2018.

    The statement announcing the flag-off of the sale had explained that there would be no predetermined spread on the sale of Foriegn Exchange Forwards by authorised dealers to end-users under the special sales window.

    Also, authorised Dealers would be allowed to earn not more than 50 kobo per CNY on a customers’ bids.

    Meanwhile, a dollar exchanged for N360 at the Bureau de Change (BDC) segment of the foreign exchange market, while one CNY exchanged for N360 at the Bureau de Change (BDC) segment of the foreign exchange market, while one CNY exchanged for N53.35.

     

  • CBN raises FOREX market with $210m

    The Central Bank of Nigeria (CBN), on Wednesday, injected 210 million dollars into the Inter-bank Foreign Exchange Market in continuation of its efforts to sustain liquidity in the market.

    The acting Director, Corporate Communications, CBN, Mr Isaac Okorafor in a statement said the apex bank offered 100 million dollars to authorised dealers in the wholesale segment of the market.

    He said that the Small and Medium Scale Enterprises (SMEs) segment received 55 million dollars, while 55 million dollars was apportioned to invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA).

    Okorafor urged Deposit Money Banks to continue to honour requests from customers with genuine needs, noting that CBN would continue to sustain liquidity in the foreign exchange market.

    Meanwhile, the nation’s currency continued to maintain stability in the foreign exchange market, exchanging at an average of N362 to a dollar at the Bureau De Change segment of the market.

  • CBN injects fresh $210m into forex market

    …as Naira exchanges for N360/$1

    The Central Bank of Nigeria (CBN) has intervened with another sum of $210m in the foreign exchange market to meet the requests of customers, as the regulator continues its efforts to maintain a stable exchange rate for the naira.

    A breakdown of the figures obtained from the bank in Abuja on Tuesday, indicated that the CBN offered the sum of $100m to authorised dealers in the wholesale segment of the market, just as it allocated the sum of $55m each to the Small and Medium-scale Enterprises segment and the invisibles segment to meet needs for tuition and medical payments and Basic Travel Allowance, among others.

    Confirming the releases, the CBN Acting Director in charge of the Corporate Communications Department, Isaac Okorafor, said the continued intervention by the bank was in line with its commitment to ensure liquidity in the market as well as reduce pressure on the naira.

    Okorafor said that the CBN was pleased with the current market situation brought about by policies it had put in place to check forex speculators, round trippers and rent-seekers.

    He noted that the policies had helped to stabilise the exchange rate in addition to the establishment of the Investors-Exporters window, which had increased FX supply with over $20bn inflow since its inception.

    According to Okorafor, the bank will not relent in its effort to manage the country’s forex with a view to reducing its import bills and checking any hemorrhage of its foreign reserves.

    The CBN, in its last intervention last Tuesday intervened to the tune of $210m to cater for requests in the various segments of the forex market.

    Meanwhile, the naira continued its stability in the forex market, exchanging at an average of N360/$1 in the BDC segment of the market on Wednesday.

     

  • CBN injects fresh $339.89m into forex market as Naira exchanges for N362/$1

    CBN injects fresh $339.89m into forex market as Naira exchanges for N362/$1

    The Central Bank of Nigeria (CBN) on Friday sustained its intervention in the Foreign Exchange market by injecting 339.89 million dollars in the Retail Secondary Market Intervention Sales (SMIS) segment.

    The Acting Director, Corporate Communications Department, CBN, Mr Isaac Okoroafor in a statement on Friday, said the continued interventions were in line with CBN’s pledge to sustain market liquidity in order to boost production and trade.

    Okoroafor said that the amount released was for requests in the agriculture, airlines, petroleum products and raw materials, and machinery sectors.

    According to Okoroafor, the feedback from the wholesale and retail segments of the Nigerian Foreign Exchange markets showed that customers are satisfied with their level of access to foreign exchange.

    He also assured Nigerians that the recent confirmation of Deputy Governors and Monetary Policy Committee (MPC) nominees by the Senate would further spur the bank toward taking sound decisions needed for economic development.

    Recall that the apex bank had on March 19, injected 210 million dollars into the Wholesale segment of the foreign exchange market.

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

  • CBN injects $355.43m into forex market

    The Central Bank of Nigeria (CBN) in its resolve to guarantee liquidity in the market, on Friday injected the sum of $355.43 million into the Retail Secondary Market Intervention Sales (SMIS).

    Figures obtained from the CBN revealed that the intervention was to meet requests in the agricultural, airlines, petroleum products and raw materials and machinery sectors.

    The Bank’s Acting Director, Corporate Communications Department, Mr. Isaac Okorafor confirmed the development.

    He reiterated that the CBN’s interventions in the market were aimed at sustaining liquidity in the market as well as boosting production and trade.

    He explained that with increasing accretion to the country’s reserve, the Bank is in a much better position to ensure liquidity in the inter-bank sector of the market and as such would continue to intervene in order to drive growth in the economy and guarantee stability in the market, particularly now that the economy had gained steam due to an upsurge in the non-oil sector.

    With the naira closing at N360/$1 on Friday, Okorafor expressed confidence that the Bank’s forex intervention underscored its determination to maintain the country’s external reserves in order to safeguard the international value of the naira.

    The CBN had in its last SMIS on February 2018, injected the sum of $321.4 million in the interbank market, while also intervening in the inter-bank foreign exchange market to the tune of $210,000,000, comprising of $100million for the wholesale segment and $55 million for both the Small and Medium Enterprises (SMEs) and invisibles segment.

     

  • CBN injects fresh $210m into forex market

    The Central Bank of Nigeria (CBN) has injected another sum of $210million into the inter-bank Foreign Exchange Market in its desire to ensure the availability of forex and also meet customers’ requests in various segments of the market.

    Information from the CBN on Monday showed that the CBN offered $100million to authorized dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment received the sum of $55 million. Customers requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million.

    Acting Director, Corporate Communications Department (CCD) of the CBN, Mr. Isaac Okorafor, confirmed the figures, adding that those who made bids in the wholesale window would receive value for the bids on Tuesday, February 06, 2018.

    Okorafor reassured the public that the Bank would continue to intervene in the interbank foreign exchange market in line with its quest to sustain liquidity in the market and maintain stability. He added that the steps taken so far by the Bank in the management of forex had paid off, as reflected by reduction in the country’s import bills and accretion to its foreign reserves.

    Meanwhile, the naira continued its stability in the FOREX market, exchanging at an average of N360/$1 in the BDC segment of the market on Monday, February 05, 2018.