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Tag: Naira

  • Again, Naira strengthens against dollars

    Again, Naira strengthens against dollars

    The naira continued its appreciation against the dollar in the official foreign exchange market on Monday. According to FMDQ data, the naira gained N3.21, trading at N1,570.99 per dollar on Monday compared to N1,574.20 on Friday.

     

    This reflects a modest gain of N3.21 against the dollar from the previous trading day. Meanwhile, in the black market, the naira remained stable at N1,600 per dollar, unchanged from last Friday.

     

    This development follows the Central Bank of Nigeria’s recent implementation of the Dutch Auction System amid a surge in dollar demand.

     

    In a statement on Friday, the apex bank announced it sold $815.26 million to 26 banks at a rate of N1,495 per dollar.

  • Naira strengthens despite hunger Protests, gains N42.88 against Dollar

    Naira strengthens despite hunger Protests, gains N42.88 against Dollar

    The Naira appreciated by N42.88 against the dollar in the foreign exchange market on a week-on-week basis, following the Central Bank’s introduction of the Retail Dutch Auction System (RDAS). This data comes from FMDQ over the past seven days.

    On Friday, August 2, 2024, the Naira traded at N1617.08 per dollar but improved to N1,574.20 this Friday in the official market. However, the Naira remained stable in the black market throughout the week.

    Last week Friday, the Naira traded between N1600 and N1605 per dollar, and the same rate was recorded this Friday.

    The appreciation of the Naira is attributed to the Central Bank of Nigeria (CBN)’s implementation of RDAS in the FX market on Wednesday. The CBN reported selling $876.26 million to 26 banks at a rate of N1,495 per dollar.

    These gains occurred despite the ongoing hunger protests that began last Thursday, disrupting economic activities in some states across the country.

  • Naira Stabilization Effort: CBN releases $876.26M to support currency

    Naira Stabilization Effort: CBN releases $876.26M to support currency

    The Central Bank of Nigeria (CBN) has sold $876.26 million to end users through 26 banks in an effort to stabilize the declining naira.

     

    In a circular issued on Wednesday, the CBN explained that this measure aims to address the pressure on the naira caused by increased seasonal demand from summer tourism and businesses seeking foreign currency to import goods into the nation.

     

    The circular revealed that a total of $1.18 billion in bids were submitted by 32 authorized dealer banks. Of these, $876.26 million in bids from 26 banks were approved, while $313.69 million in bids from six banks were disqualified. Disqualifications occurred because four banks submitted bids after the 3:00 PM cutoff time, two banks failed to use the required bid template, and some bids contained unverifiable or incorrect Forms A and M on the Trade Portal.

     

    The CBN set a cut-off rate of N1495 per US dollar for the Retail Dutch Auction. Detailed results and approved bids will be published on the CBN’s website to ensure transparency.

     

    Settlement for the approved bids is scheduled for Thursday, August 8, 2024. This sale is part of the CBN’s efforts to manage growing foreign exchange demand, which has been putting increasing pressure on the naira’s exchange rate.

  • Naira strengthens for third day amid CBN auction

    Naira strengthens for third day amid CBN auction

    The naira has appreciated for three consecutive days against the dollar at the official foreign exchange market, following the Central Bank of Nigeria’s latest FX Retail Dutch Auction System. According to FMDQ data, the naira strengthened to N1,596.52 per dollar on Wednesday, up from N1,601 on Tuesday, marking a gain of N4.48.

    Conversely, in the black market, the naira weakened to N1,620 per dollar on Wednesday, down from N1,607 the previous day, reflecting a loss of N13.

    This divergence highlights that while the naira gained N4.48 at the official market, it lost N13 in the black market. The CBN recently sold $876.26 million at N1,495 per dollar through its retail Dutch Auction System to manage the rising demand for dollars.

  • Despite protests, Naira records gain against Dollars

    Despite protests, Naira records gain against Dollars

    The naira showed a notable gain against the dollar in the foreign exchange market, despite ongoing hunger protests. According to FMDQ data, the currency appreciated to N1607.15 against the dollar on Monday, up from N1617.08 last Friday. This marks a N9.93 gain.

     

    In the black market, however, the naira remained stable, trading at N1610 per dollar, the same rate as last Friday.

     

    Foreign exchange transaction turnover decreased to $77.09 million on Monday, down from $131.55 million at the end of the previous week.

     

    “The market is scanty but offices are open in Wuse Zone 4. Nothing has changed. We buy at N1590 per dollar and sell at N1610,” Dayyabu Ashiru, a Bureau De Change operator in Wuse Zone 4, Abuja, told journalists on Monday.

     

    The hunger protests, which began last Thursday, entered their fifth day on Monday.

  • Just In: Tinubu directs NNPC to sell crude to Dangote refinery in Naira

    Just In: Tinubu directs NNPC to sell crude to Dangote refinery in Naira

    President Bola Ahmed Tinubu has directed the Nigerian National Petroleum Company Limited (NNPCL), to sell crude to Dangote Refinery and other upcoming refineries in Naira.

    The Special Adviser to the President on Information and Strategy, Bayo Onanuga, made this known in a post via his official X handle on Monday.

    He said: “To ensure the stability of the pump price of refined fuel and the dollar-Naira exchange rate, the Federal Executive Council today adopted a proposal by President Tinubu to sell crude to Dangote Refinery and other upcoming refineries in Naira. Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly. NNPC has committed to supply four.

    “But the FEC has approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as pilot. The exchange rate will be fixed for the duration of this transaction.

    “Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. The game changing intervention will eliminate the need for international letters of credit. It will also save the country of billions of dollars used in importing refined fuel”.

    The development is coming amid the dispute between the 650,000 barrel-per-day Dangote Refinery and NNPCL, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, and other regulators in Nigeria’s oil and gas sector.

  • Again, Naira tumbles against Dollars at FX market

    Again, Naira tumbles against Dollars at FX market

    The naira has significantly declined against the dollar in foreign exchange markets following the Central Bank of Nigeria’s (CBN) latest interest rate increase.

    Dayyabu Ashiru, a Bureau De Change operator in Wuse Zone 4, Abuja, said that the naira was trading at N1,590 per dollar on Tuesday, down from N1,570 the day before. “We buy at N1,580 per dollar and sell at N1,590,” he stated, indicating a N20 loss.

    Similarly, the naira weakened in the official foreign exchange market. According to FMDQ data, the currency fell to N1,548.76 per dollar on Tuesday from N1,500.32 on Monday, marking a N48.44 decline.

    This depreciation occurred despite the CBN selling $106.5 million in foreign currency to authorized dealers last Wednesday and Thursday. The currency’s drop follows the CBN’s decision to raise the interest rate to 26.75 percent on Tuesday, up from 26.25 percent in May.

  • Naira depreciates against Dollar as CBN begins regular FX sales

    Naira depreciates against Dollar as CBN begins regular FX sales

    The Naira on Friday depreciated at the official market, trading at N1,596.92 to the Dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the Naira lost N30.10.

    This represents a 1.92 per cent loss when compared to the previous trading date on Thursday when it exchanged at N1,566.82 to a Dollar.

    Also, the total daily turnover reduced to 250.67 million dollars on Friday, down from 273.14 million dollars recorded on Thursday.

    Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,619 and N1,495 against the dollar.

    CBN commences regular foreign exchange sales to bridge demand gap

    Meanwhile, the Central Bank of Nigeria (CBN) says it has commenced regular sale of foreign exchange (FX) through authorised dealer banks and licensed Bureaux De Change (BDCs) to bridge gap.

    The Director, Financial Markets Department, CBN, Ms Omolara Duke, said this in a statement on Friday in Abuja.

    Duke said that recent movements in FX market were largely driven by demand pressure from corporate entities and summer season uptick.

    She said that such fx supply was in line with the price stability mandate of the CBN, as well as its commitment to ensure a well functioning and liquid market.

    She said that the apex bank would continue to support various segments of the official markets with liquidity over the next few weeks.

    “In line with the above, the CBN, on Thursday and Friday, sold a total sum of 106.5 million dollars to 29 authorised dealer banks between an exchange rate range of N1, 498 to one dollar.

    “In addition, it bought 9.5 million dollars from four authorised dealer banks at rates between N1,510 to one dollar and N1,550 to one dollar,” she said.

    She said that CBN would continue to closely monitor compliance with existing trading rules and regulations by authorised dealer banks to promote ethical conduct and support the drive to achieve fx market stability.

    She urged the general public to direct their fx demand to their banks and BDC operators in accordance with prevailing market regulations.

  • Naira appreciates against Dollar after CBN’s directive

    Naira appreciates against Dollar after CBN’s directive

    The Naira on Thursday appreciated at the official market, trading at N1,566.82 to the Dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the Naira gained N14.83.

    This represents a 0.937 per cent gain when compared to the previous trading date on Wednesday when it exchanged at N1,581.65 to a Dollar.

    However, the total daily turnover increased to 273.14 million dollars on Thursday, up from 108.16 million Dollars recorded on Wednesday.

    Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,650.00 and N1,500.00 against the dollar.

    The Central Bank of Nigeria (CBN) had directed Bureau De Change (BDCs) operators to sell forex at a maximum profit margin of 1.5 per cent, aiming to correct market distortions.

    The apex bank directive was to normalise the foreign exchange market through ongoing reforms.

    The bank said that persistent distortions in the retail market were contributing to disparities in exchange rates, particularly in the parallel market.

    Under the directive, each BDC is authorised to purchase 20,000 Dollars at a rate of N1,450 per dollar reflecting the lower band of the trading rate observed in the previous session at Nigeria Autonomous Foreign Exchange Market (NAFEM).

    All BDCs are permitted to sell to eligible end-users at a profit margin not exceeding 1.5 per cent above the CBN rate.

  • Naira depreciates by 0.86% against dollar at official market

    Naira depreciates by 0.86% against dollar at official market

    The Naira on Monday depreciated at the official market, trading at N1,577.29 to the dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the Naira lost N13.49.

    This represents 0.86 per cent loss when compared to the previous trading date on Friday, July 12 when it exchanged at N1,563.80 to a dollar.

    However, the total daily turnover increased to 153.53 million dollars on Monday, up from 126.50 million dollars recorded on Friday.

    Meanwhile, at the Investor’s and Exporter’s (I&;E) window, the Naira traded between N1,590 and N1,470 against the dollar.