TheNewsGuru

Tag: Forex

  • Manufacturers chide banks for forex racketeering

    Manufacturers chide banks for forex racketeering

     

    Manufacturers under the aegis of Manufacturers Association of Nigeria, MAN, have accused commercial banks in the country of engaging in foreign exchange racketeering, which has been fuelled by acute shortage of hard currency in the economy.

    The manufacturers also called for the immediate review of the forex policy of the Central Bank of Nigeria, which they described as a failure so far.

    The CBN has been rationing forex to manufacturers and other prospective importers through commercial banks following the fall in the global price of crude oil, Nigeria’s biggest forex earner.

    President, of the association, Dr. Frank Jacobs, said members of the association had on several occasions, complained about being on the wrong end of the racketeering involved in the allocation of forex, adding that affected persons are afraid to identify those responsible for the corrupt practice.

    He said, “Our members have been reporting that there are some shady deals going on in foreign exchange market, so we have received a number of those reports but the unfortunate thing is that nobody wants to come out to say they are ready to identify the persons behind it.”

    Jacobs, however, noted that the people behind the racketeering would continue to exploit the CBN’s forex policy that leaves a lot of difference between official forex rate and that of the parallel market, if the apex bank fails to immediately review its forex policy.

    He said, “I like the recent call made by the National Executive Council on the CBN to look at the forex policy. The policy has not stabilised the naira as the naira has continued to fluctuate. So, we need to move away from that policy and try something else because it is not working.”

    The Attorney General of the Federation and Minister of Justice, Mr. Abubakar Malami (SAN), had on Wednesday, said he had received petitions supported by documents, alleging corruption in the CBN’s forex allocation and transactions.

    But the CBN had debunked the allegations in a publication posted on its website, saying it neither allocated foreign exchange nor did it deal directly with bank customers.

    It insisted that its forex policy was transparent, adding that it was not responsible for fixing forex rates for transactions by individuals or companies.

    Meanwhile, the alleged foreign exchange racketeering has been identified as one of the factors frustrating importers from having access to CBN’s intervention forex funds.

    For instance, in November 2016, the CBN announced that it had given manufacturing industries access to foreign exchange valued at over $660m in the interbank market to source raw materials and spare parts for their industries courtesy of the interbank forex market.

    But according to manufacturers, even though the CBN has been making forex available from time to time, it has largely been inadequate to cater for their needs.

    Jacobs said, “I know about $400m and $500m (made available). What is on now is $2.8bn that the CBN is saying it gave to the real sector, including manufacturers and I’ve just received some documents related to it and still awaiting the rest of them.

    “If the CBN gives manufacturers N1bn every month, I believe it will take care of most of their problems. In January, what the manufacturers got from the document they sent to me was about $500m and if that is brought up to N1bn, I am sure it will go a long way in addressing the forex challenges for manufacturers.”

    Jacobs said what the forex manufacturers had been getting had only aided them to keep their businesses afloat.

    Also, Chairman, MAN, Rivers State chapter, Charles Beke, said, “If you asked me if I was aware of the CBN policy to assist manufacturers to access forex, I would say yes. But it is one thing to have a policy and another thing to implement it.

    “Manufacturers across the nation, not just in Rivers State, face forex crisis and it is having negative implications for our operations.”

    In Akwa Ibom State, Chairman, MAN, Mr. Iniobong Jackson, said many factories had closed down in the state because of lack of access to forex to import raw materials.

    He noted that inconsistency in government policies made it difficult for manufacturers to plan properly, describing the current period as bad for manufacturers.

    “Many people have closed down their factories because access to forex has been almost impossible,” he added.

    President, Ekiti State Chambers of Commerce, Industry, Mines and Agriculture, Chief Kola Akosile, also said the state manufacturers had not benefited from any forex intervention from the CBN.

    The immediate past President, Kwara State Chamber of Commerce, Industry, Mines and Agriculture, Chief Hezekiah Adediji, said to the best of his knowledge, no member of the association had accessed forex from CBN’s intervention, including the $660m window in the interbank market as promised in November 2016.

    He stated that the problem was because many of its members were not aware of the intervention funds.

    Adediji said, “No manufacturer in the state has accessed the forex as far as I know. CBN does not make much publicity about some of its intervention funds. Many manufacturers are not aware of such development. They do not know where and how to access the money.”

    “It is affecting us because we are not making progress, when you are handicapped; there is not much a business owner can do.”

    The Chairman, MAN, Edo/Delta Branch, Dr. Unuigboje Alofoje, lamented that its members had had a difficult time accessing forex from banks in the region, stressing that Nigeria had been a country of buying and selling with the manufacturing sector almost totally neglected by the government.

     

  • FG likely to reverse CBN’s forex ban on 41 items – Customs

    The Zonal Coordinator, Zone ‘A’ of the Nigeria Customs Service, Assistant Comptroller-General Monday Abueh, has said that the Federal Government may reverse the foreign exchange restriction placed on 41 items imported into the country.

    Abueh disclosed this in Ibadan during his familiarisation tour of Oyo/Osun Commands as part of his visits to Customs formations under his jurisdiction.

    TheNewsGuru.com recalls that the Central Bank of Nigeria, CBN had on July, 2015, restricted 41 items, including vegetable oil, poultry products, cosmetics, plastic and rubber products, among others, from access to foreign exchange.

    The apex bank said the country had the capacity to produce those items locally.

    Abueh said that when government’s policies were rolled out, they were in the interest of the people, adding that Nigeria could not be enriching other countries by allowing some banned items into the country.

    He advised officers to be fully sensitised about implementing government’s policies anywhere they were posted to serve.

    Abueh urged officers to ensure non-passage of rice and vehicles into the country.

    He said that smugglers might try to make Oyo and other land borders their alternative routes since security at Idiroko and Seme was tight for them.

    The zonal coordinator said that the Comptroller-General, Retired Col. Hameed Ali, and the Customs Management had redeployed officers to land borders’ commands to ensure that nothing escaped through all the routes in the areas.

    He also urged officers to learn excise operations to assist in cargo clearance.

    Abueh said his visit was meant to remind officers about the Federal Government’s polices as well as the directive given by the comptroller-general to ensure security and protection of lives in the country.

    He said, “Officers should be mindful of their duties and responsibilities as you embark on your primary assignment.

    “If you are careless in your duties and if you are caught, you will be held responsible for your action.”

    The assistant comptroller-general urged officers to ensure collection of duties on general goods coming through the borders.

    According to him, the language in the service nowadays is for officers to be knowledgeable about the operations of the service.

    Abueh urged officers to be willing to learn further, adding that without doing this, such officers would be having problems with operations.

    He, however, commended officers and men in Oyo/Osun command for being on top of their operations as they recorded tremendous seizures.

    He said, “The numerous seizures had indicated that smuggling in this axis are high. That is why I am here to convey the comptroller-general’s message to officers to continue doing the good job.

    “Officers should ensure 100 per cent examination before approving document for delivery of consignment, because any mistake after clearance will not be acceptable by the service.”

    After inspecting the command’s warehouse, the zonal coordinator discovered that the warehouse was full with seizures of rice, vegetable oil, used tyres, second-hand vehicles and other items.

    Abueh said the Management of the NCS would request for officials of the National Agency for Food and Drug Administration and Control to ascertain the state of the edible items before destroying them to avoid environmental hazards.

    He warned smugglers to desist from unlawful operations and follow due process in clearing goods in order to avoid seizures.

    The Customs Area Controller of Oyo/Ogun, Comptroller Tope Ogunkua, disclosed that the seizures were intercepted over the years.

    Ogunkua said that the command’s warehouse was having dangerous odour due to some items like rice, which had expired in the store.

    He said that the command generated N14.8bn between January and December 2016.

    Ogunkua said that the command’s target for 2016 was N19.3bn but it had a shortfall of N4. 5bn.

    He said that command would not relent in its effort to suppress smuggling to the barest minimum.

     

    NAN

  • Naira extends stability at major forex market

    Naira extends stability at major forex market

    The Naira on Tuesday continued to extend its stability against the dollar at all the major segments of the forex market.

    At the parallel market, the Naira exchanged at N498 to a dollar, while the Pound Sterling and the Euro traded at NN615 and N525, respectively.

    Trading at the Bureau De Change (BDC) window saw the Naira exchanged at N399 to a dollar, Central Bank of Nigeria (CBN) controlled rate, while the Pound Sterling and the Euro closed at N616 and N527 respectively.

    The Naira also remained stable at the interbank market as it traded at N305.25 to a dollar.

    Alhaji Aminu Gwadabe, the President, Association of Bureau De Change Operators of Nigeria (ABCON), said that the increase in the nation’s external reserves and the global fall in the dollar contributed in the Naira stability.

    Gwadabe said that ABCON had also embarked on a sensitisation campaign to enable its members operate by the rules.

     

    NAN

  • CBN insists on retaining current forex policy

    CBN insists on retaining current forex policy

    The Central Bank of Nigeria has insisted on retaining the current foreign exchange policy.

    The bank said no amount of criticism and blackmail from “self-centred individuals” would make it change the policy.

    In a statement on Thursday, titled: “Nigeria’s current economic situation: Our case,” signed by its Acting Director, Corporate Communications Department, Isaac Okorafor, the CBN said: “The Central Bank of Nigeria (CBN) has observed with great concern the continued and unwarranted attack on its policies by a group of Nigerians, whose real interests, findings have shown, are anything near altruistic but rather self-serving and unpatriotic.

    “While we respect the rights of every Nigerian or stakeholder to their respective views, we find it curious that certain interests have remained persistent in their move to misinform the larger public, with the intention of discrediting genuine efforts at managing the economy, thereby creating public distrust and panic within the financial system.

    “Indeed, self-centered individuals, who have failed to assail our patriotic position, have resorted to the sponsorship of serial propaganda to misinform and mislead the public on the objectives of our policies.

    “Intelligence reports at the disposal of the Bank reveal the involvement of some unpatriotic elements funding the push to have the CBN and the Federal Government reverse its FOREX policy, which is aimed at conserving foreign exchange, stimulating agriculture and manufacturing and also promoting exports.

    “The present economic challenges that we face have been worsened by our past practice of frittering away huge earnings made from oil sales, over the years.

    “As we have explained severally, our decisions on FOREX management are prompted by the challenge posed by the level of depletion of the country’s reserves, arising from issues such as a drastic reduction in oil earnings, speculative attacks and round tripping.

    “It is pertinent to note that pressures on the country’s foreign reserves have persisted due to a huge fall in the monthly foreign earnings, which fell from over US $3.2 billion sometime in 2013 to below $500 million per month sometime in 2016, when the demand for the US dollar, particularly by importers, continued to rise considerably.

    In spite of the challenges and the basic economic fact that countries earn dollars from international trade, we have ensured we meet the genuine demand of importers to pay for eligible imports and other transactions within available resources.

    “Furthermore, the Bank has continued to ensure that there is liquidity and transparency in the FOREX market.

    “For the avoidance of doubt, the Central Bank of Nigeria (CBN) continues to:

    i. Ensure that inflation remains within manageable limits;

    ii. Intervene in critical sectors of the economy, through injection of much-needed capital to promote growth and employment;

    iii. Promote export-driven industrialisation;

    iv. Provide access to credit to farmers and small scale entrepreneurs at single digit rates, to create wealth;

    v. Protect the interest of Bank customers in Nigeria; and above all,

    vi. Ensure that the masses of our country’s low income earners are protected from the vagaries of high naira depreciation.

    “Despite our positive efforts, some persons and groups have chosen to play to the gallery by focusing on negativity that does the country no good.

    “Nevertheless, in line with our mandate and working with the fiscal authorities, we will continue to ensure monetary and price stability as well as maintain external reserves to safeguard the international value of the Naira.

    “While leaving our doors open for genuine partnership with all our stakeholders, we will only take economic decisions that will impact positively on the lives of all Nigerians.

    “We therefore urge all concerned to be more patriotic and contribute to the soundness of the Nigerian economy; rather than engage in acts capable of undermining the efforts being made at moving the country out of the current economic situation.”

  • Forex crisis: Reps query Adeosun, Udoma, others

    Sequel to the rising inflation and the free fall of the Naira against the United States Dollar, Minister of Finance, Mrs. Kemi Adeosun, and the Minister of Budget and National Planning, Senator Udoma Udo Udoma appeared before members of the House of Representatives on Monday for questioning.

    Adeosun and Udoma appeared before the House Joint Committees on Finance, Appropriation and Aid/Loans/Debt Management at the National Assembly in Abuja to defend projections in the 2017-2019 Medium Term Expenditure Framework and Fiscal Strategy Paper, MTEF.

    The 2017 budget of N7.29tn, which is already before the National Assembly, was worked out by the government based purely on the projections contained in the MTEF.

    The budget, by the provisions of the Fiscal Responsibility Act, 2007, cannot be approved by the legislature until it has first debated and passed the MTEF.

    When the ministers appeared before the committees, lawmakers raised several issues, including the “clear and huge disparity” between the official rate of the naira and the street or parallel market value.

    For example, while the government’s pairing of the local currency against the USD for the 2017 budget is N305/USD, the street rate is “almost N500/USD.”

    Lawmakers also noted that while inflation had already hit “18 per cent,” the government projected that inflation would be 15 per cent in 2017.

    The Chairman of the committee, Hon. Babangida Ibrahim, said: “There is something that is fundamentally wrong with these projections and the huge gaps that we are seeing.

    “There are even differences in the MTEF document you submitted to us at the National Assembly and the 2017 budget, which Mr. President laid before the National Assembly.

    “There has to be a position where all of us can be on the same page in the efforts to rescue this economy out of recession.”

    In addition, members demanded details on the government’s plan to borrow N2.32tn to finance the deficit in the budget, including the repayment conditions.

    They also noted another “inconsistency” in the drop in revenues to be generated by the Nigeria Customs Service from N862bn in 2016 to N717bn this year when government said it was focusing more on non-oil revenue sources.

    Adeosun in her defence of the falling naira, blamed market speculators.

    She claimed that there was deliberate buying and stocking of dollars to cause panic, when in the real sense, the naira should not have crashed more than N305.

    She added that the factors responsible for the naira’s fate were “irrational and emotional” reactions, resulting in unnecessary hike.

    In her words: “There is nothing to justify what is happening; this difference between the official and the black market rates has no fundamentals to support it.

    “In reality, the naira should not be affected more than the N305,” the finance minister stated.

    She however expressed optimism that the exchange rate hike would crash soon.

    On his part, Udoma tried to douse tension and explained that the government projected that the inflation rate would be 15 per cent because the current 18 per cent rise was not realistic.

    When asked why the inflation rate was pegged at 15 per cent in the 2017 budget when the reality is 18 per cent, Udoma said: “Our target is 15 per cent because that is what we believe it will be.

    “The exchange rate is what is causing it now, but we will soon attain stability and inflation will be down naturally at the 15 per cent.”

    Udoma explained that during the year, the exchange rate would stabilise in the region projected by the government (N305), which would in turn cut down inflation and keep it at 15 per cent.

    However, the minister did not specify how exactly the government would stabilise the market aside from promising that everything was being done to achieve it.

    Udoma also defended the slash in Customs’ revenues from N862bn to N717bn.

    He explained that in 2016, the projection could not be met due to the unhealthy state of the economy.

    He informed the lawmakers that the government felt it was wise to cut down to N717bn, which was considered more realistic to generate in 2017.

    In his words: “We looked at the performance of the economy and we looked at what was realistic.

    “Even the World Bank constantly reviews its figures and projections on Nigeria.”

    Also speaking on the sidelines of the $29.96 billion load request by President Buhari, the Director-General of the Debt Management Office, Mr. Abraham Nwankwo, admitted that the government would indeed borrow N2.32tn to finance the deficit in the budget.

    Nwakwo said the loan, when approved and received would be spent judiciously. He said the modalities of spending will be “spelt out by the government in the budget.”

    He said the loan would be spread over a repayment scheme of up to 25 years with a moratorium of between 10 and 15 years.

    Recall however that both the lower and upper Assembly are yet to grant President Buhari’s request of the $29.96bn loan.

  • Forex Scarcity: BDCs task CBN, media on single market rate

    The Association of Bureau De Change Operators of Nigeria (ABCON) has urged the CBN to harmonise the multiple exchange rates prevalent in the forex market to a single rate regime.

    Alhaji Aminu Gwadabe, President, ABCON, made the call on Tuesday in an interaction with newsmen in Lagos.

    Gwadabe also appealed to newsmen to adopt a single foreign exchange rate system in their reportage.

    He added that quoting the rate at the parallel market was misleading as Nigerians could get better offer at the BDC window.

    “We urge the regulators and the government to harmonise the multiple exchange rates that pervaded the 2016 fiscal year.

    “We also use this medium to appeal to members of the print and electronic media to adopt a single foreign exchange market rate system in their reporting and completely disregard the rates in the parallel market.

    “The parallel market rate is small in volume, cash base and not recognised by extant laws,’’ Gwadabe said.

    The ABCON chief noted that Egypt and few countries had developed the single exchange system, adding that it had helped them to reduce volatility and speculation in those markets.

    While recognising the daunting task in switching to a “complete and single determined market rate’’, Gwadabe said that the task of identifying and blocking leakages rested on the CBN.

    According to him, the foreign exchange market is volatile, subject to the whims and caprices of speculators whose stock in trade is manipulation.

    The financial expert explained that journalists had a critical role in ensuring that the dictatorship of speculators was met with the reportage of the reality in the market.

    He reiterated the association’s resolve to embark on a nationwide media campaign to educate the public on the roles and activities of BDCs so as to provide a guide in dealing with only CBN licensed BDCs.

    In order to make ABCON’s operation more transparent, Gwadabe said that the association’s operation was undergoing automation, with over 2000 BDCs already captured.

    Recall that since the apex bank lifted its ban on BDCs in 2016, the association has been working closely with it to ensure the stability of the Naira.

    The association has also put a self check on its members to ensure that they do not operate above the guideline establishing them.

    The association believes that by working closely with the CBN, investors’ confidence will be restored to the market, which will translate to a bridging of the gap between the parallel and the official window.

  • Health: 2017 budget gets demeaned by forex

    Due to continuous depreciation of Naira to other foreign currencies, stakeholders in the health sector have raised an alarm over inadequate budgetary provision of N304 billion for the Federal Ministry of Health in the 2017 national budget.

    The stakeholders on the platform of Partnership for Advocacy in Child and Family Health, PACFAH, disclosed that the proposed health budget was cumulatively lower than that of 2016 due to foreign exchange challenges in the value of naira to the dollar.

    In a statement on the State of Nigeria Health Budget – 2017 issued by the PACFAH, the stakeholders, noted that the proposed 2017 health budget was an improvement from past trends on the face value, especially the capital expenditure bit.

    The statement read: “The total sum of N304 billion has been proposed for the Federal Ministry of Health, amounting to 83 percent for recurrent expenditures (salaries and overheads) and 17 percent for capital expenditure (health infrastructures and services).

    “This 2017 proposed Ministry of Health budget is 4.17 percent of the national budget, a poor improvement on the 2016 budget of 4.13 percent.

    “With about 80 about improvement in terms of capital expenditure of the 2017 proposed budget compared to that of 2016, the reality is that this proposed health budget is cumulatively lower than that of 2016 due to the skyrocketed foreign exchange value of a naira to dollar.

    “In 2016, the Central Bank of Nigeria pegged the exchange rate at N197/1USD. Mid-year of 2016 and for the 2017 proposed budget, the exchange rate is at N305/1USD.

    “As a result, while 2016 Health budget was $1.269m, the proposed 2017 Health budget is less by 21 percent at $0.997m. This is important because most of our health services are reliant on importation.

    “By extension, the National Health Act was signed into law in 2014, unfortunately the proposed 2017 budget does not make provision for it.

    “If it did, the sum of N46bn would have been added and dedicated to health projects and services and would have gone a long way to improve the lives of Nigerians.”

    “Lastly, the Federal Government committed to the Abuja Declaration of 2001, promising to allocate 15 percent of its budget to Health, year 2017 budget this is the 16th budget year, the best Nigeria has done in Health allocation was 5.95 in 2012. The 2017 proposed health budget is at 4.17 percent, a whopping 73 percent gap from the 15 percent benchmark.”

    Health is Wealth. No sector of the Nigerian economy will function properly and at all if Health is not guaranteed. The Government need to urgently reconsider the inadequate 2017 proposed Health budget and upwardly review it to a minimum of 10 percent allocation while also considering the National Health Act (2014) and the Abuja Declaration.

    The PACFaH NGO partners are include Association for the Advancement of Family Planning in Nigeria, AAFP; Family planning at Federal level; Civil Society Initiative for Scaling-up Nutrition in Nigeria, CS-SUNN; Community Health and Research Initiative, CHRI: Federation of Muslim Women Organisations of Nigeria, FOMWAN; Health Reform Foundation of Nigeria, HERFON and Pharmaceutical Society of Nigeria, PSN.

    PACFaH is a health policy advocacy project led by Nigerian NGOs holding government to account to fulfil health policy and funding commitments.

  • Forex: CBN sells $1bn to clear backlog of demand

    Forex: CBN sells $1bn to clear backlog of demand

    As part of its statutory role as lender of last resort, the Central Bank of Nigeria, CBN has sold about $1bn on the over-the-counter financial market to clear a backlog of dollar obligations in selected sectors, according to foreign exchange traders.

    The traders said on Thursday that the dollar sale was made last week. They described it as the largest special auction by the CBN since the naira peg was removed in June.

    Outstanding dollar demand was about $4bn before June, when the 16-month-old peg was removed. Efforts to cut dollar demand have been largely unsuccessful due to low oil prices.

    Crude sales account for about 90 per cent of Nigeria’s foreign exchange earnings.

    Traders said the CBN told banks to prioritise airlines, manufacturing firms, petroleum products importers and agriculture sectors, the sectors worst hit by the dollar shortage, in the auction.

    “The central bank sold $1bn at last week’s special forex auction and directed banks to issue fresh letters of credit to reflect the amount sold in favour of the affected sectors,” a senior currency trader affirmed.

    Traders said the CBN sold 30-day and 60-day forwards at the auction.

    Recall that the CBN had on December 19, the CBN instructed commercial lenders to submit their backlog of dollar demand from fuel importers, airlines, raw materials and machinery for manufacturing firms and agricultural chemicals for the special forex intervention.

  • Naira weakens to N490/$ at parallel market

    Naira weakens to N490/$ at parallel market

    The Naira on Wednesday weakened to N490 to a dollar at the parallel market after appreciating to N485 to a dollar during the Christmas break.

    The News Agency of Nigeria (NAN) reports that the Naira lost 5 points, representing a depreciation of 1.03 per cent, while the Pound Sterling and the Euro closed at N590 and 502, respectively.

    At the Bureau De Change (BDC) Window, the Naira traded at N399 to a dollar, CBN controlled rate, while the Pound Sterling and the Euro closed at N602 and N510, respectively.

    The Naira traded at N305.25 to a dollar at the official interbank market.

    Traders at the market said that the scarcity of forex was still exerting pressures on the Naira.

    Meanwhile, Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON) said that the pressure on the Naira was disturbing and dangerous to investment, output and employment.

    Gwadabe called for harmony between the fiscal and monetary policies in addressing the woes of the Naira.

    “There is the need for concerted collaboration among both the fiscal, monetary policy makers and the operators in the economy to address this monster facing the economy.

    “I must confessed that I am disturbed and worried,’’ Gwadabe said.

  • 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.