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Tag: Naira

  • Redesign of Naira likely to have positive impact on its value – Emefiele

    Redesign of Naira likely to have positive impact on its value – Emefiele

    The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, says the proposed redesigning of the Naira could impact positively on its value.

    Emefiele said this while announcing plans by the apex bank to put redesigned N200, N500 and N1,000 denominations in circulation from Dec. 15.

    According to him, though that is not the major intention for changing the currency, it can come as one of its advantages.

    Emefiele said that significant hoarding of banknotes by members of the public, worsening shortage clean and fit banknotes and increasing cases and risk of counterfeiting informed the decision.

    “Statistics show that more than 85 per cent of currency in circulation are outside the vaults of our commercial banks.

    “As at the end of September, N2.7 trillion out of the N3.23 trillion currencies in circulation was outside the vaults of commercial banks across the country.

    “Evidently, currency in circulation has more than doubled since 2015 rising from N1.46 trillion as at Dec. 2015, to N3.23 trillion as at Sept. 2022.

    “This is a worrisome trend that cannot continue to be allowed, ” he said.

    According to Emefiele, recent developments in photography technology and advancement in printing devices have also made counterfeiting of the Naira relatively easier.

    He said that the apex bank was determined to arrest the situation forthwith.

    “In recent times, the CBN has recorded significantly higher cases of counterfeiting, especially at the higher denominations of N500 and N1,000 banknotes.

    “Although, global best practice is for central banks to redesign, produce and circulate new legal tenders every five to eight years, our existing series of banknotes has not been redesigned in the last 20 years.

    “The CBN remains resolutely determined to achieve the objective of its mandate as enshrined in the CBN Act.

    “It is, therefore, no longer tenable to continue with business as usual, especially given the continually evolving circumstances that could impede the optimal performance of our Naira,” he said.

    He said that the step taken by the CBN to redesign the Naira would also help deepen the drive to entrench a cashless economy.

    “It will be complemented by increased minting of the eNaira. This will further reign in on currency outside the banking system into the banking system, thus making monetary policy more efficacious,” he said.

    He said that the step would also help to check crimes like terrorism and kidnapping.

    “Access to large volumes of money outside the banking system used as source of ransome would begin to dry up ” he said.

  • Return old Naira notes to CBN vault now – Emefiele tells Nigerians

    Return old Naira notes to CBN vault now – Emefiele tells Nigerians

    As the Central Bank of Nigeria (CBN) prepares to redesign the 200, 500 and 1000 Naira notes, the apex bank has asked Nigerians to return the old Naira notes to the bank’s vault.

    TheNewsGuru.com (TNG) reports that CBN Governor, Godwin Emefiele made this disclosure on Wednesday at a special press briefing in Abuja, the federal capital territory (FCT).

    Emefiele disclosed that Nigerians have until January 31st 2023 to return the old Naira notes to the CBN and get the redesigned notes in return.

    “Timeline for mopping up, I will say, today is 26th. So, we have about 6 or 7 days to the end of October till January 31 2023. That is almost about 100 days.

    “I think that is adequate to mop up the currency out of circulation back to the vault of the CBN,” Emefiele said.

    For those who do not have an account, the CBN Governor advised that they should go to the nearest bank branch and that an account would be opened for them for the purpose of returning the old Naira notes.

    “If you are carrying cash, you can go to the nearest bank branch near you, they will take your cash and open an account for you for the purpose of returning the old Naira into the bank’s vault and then collecting the new Naira [notes] when we begin to release them,” Emefiele said.

    According to the CBN Governor, the redesign will take effect from Thursday, December 15, 2022.

    CBN set to make Nigeria predominantly cashless economy

    Earlier, Emefiele had on Tuesday in Lagos State revealed plans by the CBN to take decisive steps to ensure that Nigeria operated a 100 per cent cashless economy. The CBN Governor made the assertion at the first-year anniversary of the Central Bank Digital Currency, the eNaira.

    “The destination as far as I am concerned is to achieve a 100 per cent cashless economy in Nigeria. I know that those who doubt us will say that 100 per cent cashless is unattainable. Yes, it is true! But, Nigeria must move from being a predominantly cash economy to a predominantly cashless economy.

    “At this time, I can say from what I have read from online banking to introducing the POS to ATMs, to mobile banking, working and collaborating with the Ministry of Education, I want to say that we have provided all the necessary infrastructure that should enable us make cashless a nationwide journey.

    “It is not something that some of us will like but, we would in the coming weeks and months make pronouncements that must make cashless go nationwide. I believe part of those pronouncements will begin from tomorrow and there will be some breaking news tomorrow about it.

    “Even the bankers committee will hold a special bankers committee meeting tomorrow to deliberate further on this, so let’s expect the news,” Emefiele said.

    He said that the eNaira, which was another product added for Nigerians to embrace a cashless economy, had in its first year of operation, recorded over eight billion transactions.

    He said that the apex bank would continue to refine, fine-tune and upgrade the eNaira as it was a journey of possibilities and not a one-off event .

    According to him, Nigerians should expect to see additional functionalities in the coming months.

    Emefiele said, “The additional functionalities include onboarding of revenue collection agencies to increase and simplify collections.

    “Collaborating with the Ministry of Humanitarian Affairs through the creation of sector-specific tokens to support the Federal Government’s social programmes and distribution of targeted welfare schemes in a bid to lift millions out of poverty by 2025.’’

    He assured the apex bank would continue to act decisively to encourage innovation, while at the same time protecting the interests of consumers and other stakeholders.

    TNG reports that the eNaira, designed to provide Nigerians with a cheap, safe and trusted means of payment within the domestic and global economy, was introduced October 25, 2021, by President Muhammadu Buhari, given the potential benefits it portends for a digital economy.

    Its objective is to enhance financial inclusion, support poverty reduction, enable direct welfare disbursement to citizens and  support a resilient payments ecosystem.

    It is also to improve availability and usability of central bank money, facilitate diaspora remittances, reduce the cost of processing cash, and reduce cost and improve efficiency of cross-border payment among others.

  • BREAKING: Central Bank of Nigeria to redesign Naira notes

    BREAKING: Central Bank of Nigeria to redesign Naira notes

    The Central Bank of Nigeria (CBN) has disclosed plans to redesign some Naira notes.

    TheNewsGuru.com (TNG) reports CBN Governor, Godwin Emefiele disclosed this at a special press briefing in Abuja on Wednesday.

    The Naira notes to be redesigned are the 200, 500 and 1000 Naira notes.

    According to Emefiele, the redesign will take effect from Thursday, December 15, 2022.

    UPDATE || Return old Naira notes to CBN vault now – Emefiele tells Nigerians

  • Naira appreciates slightly , exchanges at 436 to dollar

    Naira appreciates slightly , exchanges at 436 to dollar

    The Naira on Monday gained slightly against the dollar at the Investors and Exporters window, exchanging at 436 naira to a dollar.

    The Naira gains slightly with 0.08 percent as against the N436.33 it exchanged for last week.

    The open indicative rate closed at N435.67 to the dollar.

    An exchange rate of N441 to the dollar was the highest rate documented within Monday’s trading before it later settled at N436.

    The Naira was sold for as low as N423 to the dollar within Monday’s trading.

    A total of 78.10million dollars was traded at the official Investors and Exporters window on Monday.

    Recall that the naira depreciated slightly few days ago against the dollar.

    An exchange rate of N441 to the dollar was the highest rate recorded within the day’s trading before it settled at N436.

  • Naira will hit 5,000 against dollar – Pastor Ibiyeomie

    Naira will hit 5,000 against dollar – Pastor Ibiyeomie

    Pastor David Ibiyeomie of Salvation Ministry has warned Nigerians to vote wisely in 2023 if they don’t want to suffer.

    Ibiyeomie warned that the naira would hit to N5,000 against the dollar if Nigerians vote the wrong political party or candidate in 2023.

    Addressing members of his church in Port Harcourt, the Rivers State capital, Ibiyeomie said Nigerians would suffer if they vote the wrong political party.

    According to Ibiyeomie: “If you vote party, you will suffer and I will be here. I won’t suffer with you, I know too much to suffer with you.

    “I’m talking as a man of God, make the mistake of voting the wrong person and the naira would tumbler to N5,000.

    “If you don’t want naira to tumble to N5,000 better tell yourself what to do.

    “He said woo to you who vote people with nothing in their head.”

  • EFCC raids BDC operators in Abuja as Naira dips against Dollar

    EFCC raids BDC operators in Abuja as Naira dips against Dollar

    Operatives of the Economic and Financial Crimes Commission (EFCC) on Friday raided Wuse Zone 4, home to most bureaux de change (BDC) operators in Abuja, the federal capital territory (FCT).

    The raid, conducted in other locations across the country, was undertaken days after the CBN blamed currency speculators for exacerbating the crash of the Naira against the Dollar and other foreign currencies.

    An authoritative source at the commission disclosed that the raid was a product of weeks of covert operation, saying: “The idea is to dislodge currency speculators who are massively mopping up all available foreign currencies.

    “The raid was a product of weeks of surveillance where agents of the EFCC monitored the activities of most of the bureaux de change operators in the Wuse 4 axis”.

    According to the source, enough intelligence was gathered that some people with massive naira inflow had mobilised resources and are buying up available foreign currency, especially the dollar.

    “Similar operation has also been carried out at major airports in the country. It’s a nationwide co-ordinated operation and will be extended to major commercial cities of Kano, Lagos and Port Harcourt,’’ the source added.

    Efforts to get official confirmation on the raid from EFCC spokesperson, Mr Wilson Uwujaren were not successful as his phone was switched off.

  • Free fall of Naira: CBN under Emefiele has failed – Senator Olujimi

    Free fall of Naira: CBN under Emefiele has failed – Senator Olujimi

    The Senator representing Ekiti South Senatorial District in the Senate, Senator Biodun Olujimi has said the Central Bank of Nigeria (CBN) under the leadership of Mr Godwin Emefiele has failed.

    TheNewsGuru.com (TNG) reports Senator Olujimi said this while contributing to a motion moved by Senator Olubunmi Adetunmbi on the free fall of the Naira during plenary session of the Senate on Wednesday.

    Reports had emerged that the Naira crashed further in the parallel market, trading for N710 against the U.S. dollar on Wednesday.

    Checks on the exchange platform, Aboki Forex showed the current parallel market rate pegged at N710 to a dollar. The national currency traded for N670 against the dollar on Monday in the parallel market.

    Angered by the development, the Senate, following deliberation on the motion, Senator Adetunmbi summoned Emefiele to appear at a plenary and address distinguished Senators in closed door.

    Contributing on the motion, Olujimi said: “Someone should be able to say I have failed and that is the CBN”, adding that somebody should be penalislzed for what is happening to the Naira.

    “Someone should be able to say I have failed and that is the CBN. Most of what is happening is because people are taking out the dollar and selling and bringing them back in.

    “We should be penalizing somebody for what has happened to the Naira. The time has come for us to look holistically into what is happening.

    “What is happening to the Naira is a replica of what is happening to Nigeria,” Senator Olujimi argued.

    UPDATE: Senate summons CBN Governor over naira fall

    The Senate, on Wednesday, resolved to summon the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, to educate and inform senators in a closed session on the reasons for the rapid depreciation of the value of the naira.

    It also mandated the Senate Committee on Banking, Insurance and Other Financial Institutions to assess the impact of CBN intervention funds meant to support critical sectors of the economy.

    The resolutions were reached by lawmakers after the upper chamber considered a motion sponsored by Senator Olubunmi Adetunmbi (APC – Ekiti North).

    The motion was entitled, “State of CBN Intervention Funds and Free Fall Of Naira.”

    Coming under Order 41 and 51 of the Senate Standing Order, as amended, Adetunmbi bemoaned Nigeria’s economic reality amid an urgent call for “extraordinary measures”.

    He noted that the CBN through its numerous multi-sectoral intervention funds, provided special funds to support critical sectors of the economy.

    He explained that in view of such interventions, it had become necessary to assess the state of implementation and effectiveness of the funds deployed for the purpose.

    The lawmaker, recalled that the CBN in 2021, placed an indefinite halt on forex bidding by Bureau de Change operators (BDCS) and importers over allegations of abuse and mismanagement.

    He observed that the halt by the CBN resulted in a spike of the exchange rate.

    According to Adetunmbi, “the two instruments of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) could only serve less than 20% of the total forex demand by travelers and businesses.”

    He expressed worry that the import and export window meant to serve the forex needs of business giants, “has become a rare opportunity that only a privileged few can access.”

    “These and a number of others have contributed to the excessive scarcity of forex in Nigeria today”, he added.

    He noted that as at the 26th of July 2022 (yesterday), the exchange rate in the autonomous segment (BDCS) of the foreign exchange market is N670 to 1 United States Dollar and projected to end at N1000 by end of the year based on the current rate of depreciation.

    He, therefore, advised the Central Bank to take new measures to curb forex scarcity and address the sliding rate of Naira exchange.

    In his contribution, Senator Sani Musa (APC – Niger East), faulted the Central Bank’s decision to halt foreign exchange biddings, thereby cutting off the parallel market – Bureau de change operators.

    According to him, the attempt by the CBN to control the value of the naira with the continuous exclusion of BDCs would only lead to its further depreciation.

    He, therefore, advised the apex bank to rather ensure the regulation and monitoring of the parallel market.

    “What CBN used to do was to give out $10,000 (USD) to each of these BDCs with a clear directive for it not to be sold above N470 as against the $419 exchange rate. It worked.

    “But today, nobody is determining where the rate is going and I can assure you we can’t have that solution because we are only importing”, he said.

    On his part, Senator representing Katsina North District, Senator Ahmad Babba-Kaita, said one way to improve the value of the naira was to encourage foreign investments to attract inflow of other currencies into Nigeria.

    “The only way we can access the dollar will be determined by other economies and not ours”, he noted.

    He, however, attributed the lack of foreign investments into Nigeria on the poor security situation caused by banditry, terrorism and other criminal activities.

    The Senate, in its resolutions, called on the CBN to urgently intervene to stop the rapid decline in the value of the Naira vis-à-vis the Dollar and other international currencies.

    It also mandated the Senate Committee on Banking, Insurance and Other Financial Institutions to conduct an assessment of CBN intervention funds and the declining value of Naira to come up with sustainable solutions.

    The Senate, at the end of Wednesday’s proceedings, adjourned plenary till September 20th, 2022, for its annual recess.

  • BREAKING: Senate summons CBN Gov over declining value of Naira

    BREAKING: Senate summons CBN Gov over declining value of Naira

    The Nigerian Senate has summoned the Governor of the Central Bank of Nigeria, Mr Godwin Emefiele over the declining value of the Naira.

    TheNewsGuru.com (TNG) reports that the summon followed a motion moved by Senator Olubunmi Adetunmbi on Wednesday during plenary on the state of the central bank intervention funds and the free fall of the Naira.

    According to a resolution passed by the upper legislative chamber, following deliberation on the motion, Emefiele will come into plenary and address distinguished Senators in closed door.

    The Senate in the resolution also urged its Committee on Banking, Insurance and other Financial Institutions to conduct an assessment on the decline in the value of the naira to come up with sustainable solutions.

    Meanwhile, in the interim, the Senate called on the CBN to urgently intervene to stop the rapid decline in the value of the Naira in service to the dollar and other international currencies.

    TNG reports the Naira on Tuesday depreciated at the Investors and Exporters window, against the dollar, exchanging at N431.

    The figure represented a decrease of 0.90 per cent compared with the N427.17 it exchanged to the dollar on Monday.

    The open indicative rate closed at N427.30 to the dollar on Tuesday.

    An exchange rate of N444 to the dollar was the highest rate recorded within the day’s trading before it settled at N431.

    The local currency sold for as low as N414 to the dollar within the day’s trading.

    A total of 58.03 million dollars was traded in foreign exchange at the official Investors and Exporters’ window on Tuesday.

    However, on Wednesday, the Naira crashed further in the parallel market, trading for N710 against the U.S. dollar.

    Checks on the exchange platform, Aboki Forex showed the current parallel market rate pegged at N710 to a dollar.

    The national currency traded for N670 against the dollar on Monday in the parallel market.

  • 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.

  • Dollar Jumps to 600naira at Parallel market, external reserves falling

    Dollar Jumps to 600naira at Parallel market, external reserves falling

    The naira exchanged at 600 to a dollar on Monday at the parallel market, increasing fears of further degradation of the country’s currency.

    A sharp increase of 184.25 naira was visibly noticed at the importers and Exporters window, causing a widening exchange rate.

    At Zone 4 in Abuja, which is the hub of the parallel market in the Federal Capital Territory, two Bureau de Change Operators, Mohammed Isa, and Abu Abdullahi, confirmed that the rate was N599/$ at 10am and 11.14am respectively.

    However, the rates for both BDCs changed to N600/$ when they were separately contacted at N3.13pm and N5pm respectively on Monday.

    “If I reduce this by N1, I will not be able to make any profit,” one of the two BDCs, Abu Abdullahi, said.

    At the Lagos airport on Monday, a Bureau de change operator, Adamu Haruna, said that the rate was “N600/$, no more, no less.”

    When contacted Bala Usman, a BDC operator at Amuwo-Odofin in Lagos, gave an initial rate of N598/$ in the morning but changed to N599 at 2.53pm when reached again.

    “The demand is increasing and the dollar is very scarce now,” he said.

    Naira has weakened in the parallel market due to increased speculations, falling external reserves, and low foreign exchange inflows into Africa’s biggest oil producer.

    The country’s external reserves fell by $313m in March, according to figures obtained from the Central Bank of Nigeria.

    Politics is also a key factor, as experts see politicians mopping up dollars for election primaries this month.

    The President, Association of Bureaux de Change Operators of Nigeria, Alhaji Aminu Gwadabe, mentioned that the situation was caused by several factors, including elections, loss of confidence, and demand/ supply.

    “It is a market where demand and supply determine the price. Do not forget that election years are associated with foreign exchange volatility, coupled with supply squeeze. External reserves, inflation, cost of inputs, and the Russia-Ukraine war are also key issues,” he said, arguing that there was indeed a loss of confidence, saying that “once people see the exchange rate rising, the confidence will also fall.”