TheNewsGuru

Tag: Forex Market

  • 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.

  • 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.

     

  • Forex: CBN lifts ban on Keystone Bank, others

    Keystone Bank on Thursday said the Central bank of Nigeria(CBN) had readmitted it into the spot and wholesale forwards segment of the foreign exchange market.

    The bank said in a statement issued in Lagos that the CBN readmitted it sequel to the provision of evidence of sales of foreign exchange to Small and Medium scale Enterprises (SMEs).

    It also said the re-admission was because the bank had been selling to the SMEs since the introduction of the special window to such businesses.

    TheNewsGuru.com reports that the CBN on Monday banned 14 banks from the weekly wholesale spot and forwards market leaving only eight banks.

    According to the CBN, the banks were sanctioned for failure to adhere to the foreign exchage supply policy to SMEs thereby frustrating the efforts of small businesses that needed foreign exchange.

    The eight banks that were not suspended include; Access Bank Plc, Diamond Bank Plc, Fidelity Bank Plc, Heritage Bank Plc, Jaiz Bank, Sterling Bank Plc, Unity Bank Plc and Zenith Bank

    Mr Hafiz Bakare, the Acting Managing Director of Keystone Bank, said: “SMEs are an integral part of the economy of Nigeria and as such we at Keystone Bank are committed to supporting this sector.

    “We are pleased to have clarified the banks position with the CBN as we have always shown support for SMEs through our work with farmers, manufacturers, schools and other business owners.”

    Bakare said that Keystone Bank would always support CBN in ensuring the growth and development of the economy.

     

     

     

    NAN

     

  • BDC operators advocate professionalism in forex market

    BDC operators advocate professionalism in forex market

    The Association of Bureaux De Change Operators of Nigeria (ABCON) says it is committed to deepening professionalism among its members to gain investors’ confidence.

    Alhaji Aminu Gwadabe, ABCON’s President, said this at the South-West zonal meeting of the association on Thursday in Lagos.

    He said that the body believed that professionalism engendered foreign investors’ confidence in the Nigerian foreign exchange market.

    Gwadabe called on Bureaux De Change (BDCs) operators to distinguish themselves from parallel market operators by rendering efficient services and complying with regulations.

    He said that while the pressure on the naira was due to liquidity problems and confidence, professionalism on the part of BDCs would help boost foreign investors’ confidence in the nation’s foreign exchange market.

    “ABCON is committed to boosting foreign investors’ confidence as this will help attract the much needed liquidity into the market and reduce pressure on the naira exchange rate.

    “You have to distinguish yourselves from parallel market.

    “We are the ones licensed to operate the business, but we must prove this by distinguishing ourselves through the way we serve our customers.

    “Before now, there were criticisms about BDCs but now we are the new bride of the regulators,’’ Gwadabe said.

    The president also urged members of the association to comply with the necessary requirements in their businesses, to ensure that they sustain the renewed regulatory interest and confidence in BDCs.

    “The Central Bank of Nigeria is willing to expand our scope of business, but this is conditioned on our willingness to increase our level of professionalism.’’

    Gwadabe advised BDCs not to limit their services to foreign exchange needs for Personal Travel Allowance (PTA).

    “Why is everybody just doing PTA, when you can do mortgage, school fees and medical expenses?

    “You can do mortgage, medical and school fees on cash basis, provided you don’t exceed $5,000, and you ensure all the necessary documentations are provided.’’

    Gwadabe assured members that the association had started addressing the challenges experienced by BDCs in verifying Biometric Verification Numbers (BVNs) and the international passports of prospective customers.

    He added that ABCON had started discussions with the management of Nigeria Interbank Settlement System (NIBSS), on the need to provide dedicated channel for BDCs to verify BVNs and international passports.

    He, however, advised BDCs to be patient and continue to use the available channel to verify BVNs and the international passports of customers.

    He also advised BDCs to deal with people they were familiar with to ensure compliance with the Know Your Customer (KYC) requirement of the Central Bank of Nigeria (CBN).

    Gwadabe also said that the association had set up a surveillance committee to monitor the activities in the BDC sector.

    He called on members of the association to help facilitate the work of the committee by providing it with information on any observed malpractice, by any operator.