Tag: dollars

  • CBN injects dollars to boost

    CBN injects dollars to boost

    A plan by the Central Bank of Nigeria (CBN) to pump more dollars into the interbank foreign exchange (forex) market may shore up the value of the Naira against the dollar.

    The Naira appreciated marginally on all trading sessions at the interbank market, opening last week at N305.80/$1 and settling at N305.70/$1 at the end of the week.

    But the Nigerian Autonomous Foreign Exchange Rate Fixing rate published on the FMDQ website depreciated marginally last week, opening at N376.54/$1 on Tuesday and closing at N377.95/$1 on Friday.

    At the parallel market, the Naira/dollar exchange rate remained at N391/$1 on all trading sessions.

    The CBN has been injecting dollars into the market to stabilise the local currency against the greenback. The apex bank supplied total of $1.2 billion in April into the interbank market, with the intervention frequency of two to three times per week.

    Also, the cumulative forex supply since February 20 remained at $3.61 billion, compared to $5.83 billion sold in January to April 2016.

    There were strong indications at the weekend that the CBN plans to inject more forex through intervention segments of the market thereby heightening expectations that the naira will appreciate significantly during the week.

    The expectations became rife following the inability of the authorised dealers to fully subscribe to various amounts offered by the apex bank on two consecutive times last week. Both events sent jitters to currency speculators perceiving dollar glut as imminent in the market.

    Laying credence to this development, CBN’s spokesman, Isaac Okorafor, confirmed the anticipated interventions in most segments of the market during the week, with effect from today.

    According to him, the Bureaux De Change (BDC) and the Small and Medium Scale Enterprises (SMEs) along with other major segments will also receive adequate intervention with a view to providing liquidity in the entire forex market.

    Also at the weekend, manufacturers praised the CBN over the forex management strategy adopted recently.

    The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadiri, was quoted as saying that “the recent pronouncement of the CBN comes as a relief. If the intervention is sustained, there’s no doubt that we will have continued improvement in sourcing raw materials.”

    Also speaking, the Chairman of the United Bank for Africa (UBA) Tony Elumelu, also lauded the forex regime, noting that “the recent CNB policy initiatives, under the watch of Godwin Emefiele, has restored predictability, improved market confidence and significantly added a boost to the value of the national currency, fueling optimism that the economy would soon rebound from recession.”

    Analysts put Nigeria’s oil revenue estimate at a monthly value of $2.5 billion. Yet, the market forex demand hovers around $4.8 billion monthly.

  • Naira strengthens against dollar at parallel market for N398

    Naira strengthens against dollar at parallel market for N398

    The naira firmed against the dollar at the parallel market on Tuesday, closing at N398 to the dollar.

    The News Agency of Nigeria (NAN) reports that the naira appreciated from the N410 it posted at the segment on Friday

    It was traded at N497 and N430 to the pound sterling and Euro, respectively, at the segment.

    At the Bureau De Change (BDC), the dollar was sold at N362 to the dollar, while the pound and the Euro closed at N495 and N428, respectively.

    Trading at the interbank saw the naira closing at N306 to the dollar.

    Traders still expressed optimism that the naira might sustain its appreciation against the dollar as the CBN maintained its liquidity boost to all the segments of the market.

    Meanwhile, Alhaji Aminu Gwadabe, the President, Association of Bureau De Change Operators of Nigeria (ABCON), said that BDCs were working hard to close the gap between the official and the parallel market rates.

    He commended the CBN for increasing the volume of foreign exchange offered to BDCs weekly and promised that its members were ready to drive down the rates if the apex bank continued to inject more liquidity to the sector. (NAN)

  • $43million recovered in Lagos not mine, says Amaechi

    $43million recovered in Lagos not mine, says Amaechi

    The Minister of Transportation, Rotimi Amaechi has dismissed claims by the Rivers State Governor, Nyesom Wike that the $43million found in a luxury apartment in Ikoyi area of Lagos belongs to him.
    Ameachi in a statement in Abuja on Saturday by his media office said he is not the owner of the $43million and the Ikoyi apartment in which the money was recovered does not belong to him.

    The minister also challenged Wike to charge him to court if he has any shred of evidence that the money belongs to Rivers State and was kept in the Ikoyi apartment by Amaechi.
    According to the statement: “Wike has stolen Rivers State dry. Wike and his gang have frittered billions and billions of Naira of Rivers people money away. Rivers State is perpetually in crisis, the state in a mess as Wike has made a total mess of governance in the State. That child who sits there as governor is confused, he doesn’t know what to do. Wike’s only solution is to attack Amaechi.”

    “Since he became governor, Wike sleeps and wakes up everyday, with a sole, one-point agenda to attack and denigrate Rotimi Amaechi, no matter how ridiculous and silly he sounds.

    “Everyday in Rivers State, there is one frivolous, false story of what Amaechi did or didn’t do. Same pattern, the same blatant lies with no proof, same old concocted stories of corruption allegations against Amaechi told with different flavours.

    “At this rate, if Wike is unable to perform his spousal duties, he will blame it on Amaechi. Yes, that’s how despicably low he can go in his consuming fixation to throw mud at Amaechi.”

    “This latest outburst by Wike is typical of him. We are aware that Wike first tried to float the fake news of Amaechi’s ownership of the recovered $43million and the Ikoyi house in the social media using his minions and lackeys, spending huge sums of Rivers money on the failed project.

    The statement further reads: “His minions and lackeys were calling journalists, bloggers and media organizations to run the fake story with promises of almost irresistible mouth-watering compensation for using the fake story.

    “When that failed and the story didn’t gain traction that was when Wike decided to hurriedly hold the press conference Friday night, to rant and spew his outright lies, yet again without providing any proof of Amaechi’s ownership of both the property and the money.”

    “For clarity and emphasis, Chibuike Rotimi Amaechi is not the owner of the $43million and the Ikoyi apartment in which the money was recovered from. Amaechi has no business, link or connection to the money or property. Chibuike Rotimi Amaechi does not know who owns the money or Ikoyi apartment.”

    “Wike’s malicious allegation of corruption against Amaechi in the sale of the Gas Turbines is not new. This false claim has been punctured repeatedly with facts and evidence of the transfer payments for the power plants into Rivers State government accounts by Sahara Energy.

    “The records of how the funds were spent and what it was spent on are in the records of the State government. Amaechi has absolutely no business or any interest whatsoever in Sahara Energy. The company was already a thriving business concern before Amaechi’s emergence as governor of Rivers State in 2007.

    “We urge all right-thinking members of the public to completely disregard all the false, politically motivated no-proof claims by Nyesom Wike and his minions as it concerns Amaechi and the $43million and Ikoyi property.

    For clarity and emphasis, Chibuike Rotimi Amaechi is not the owner of the $43million and the Ikoyi apartment in which the money was recovered from. Amaechi has no business, link or connection to the money or property. Chibuike Rotimi Amaechi does not know who owns the money or Ikoyi apartment.”

    “Wike’s malicious allegation of corruption against Amaechi in the sale of the Gas Turbines is not new. This false claim has been punctured repeatedly with facts and evidence of the transfer payments for the power plants into Rivers State government accounts by Sahara Energy. The records of how the funds were spent and what it was spent on are in the records of the State government. Amaechi has absolutely no business or any interest whatsoever in Sahara Energy. The company was already a thriving business concern before Amaechi’s emergence as governor of Rivers State in 2007.

    “We urge all right-thinking members of the public to completely disregard all the false, politically motivated no-proof claims by Nyesom Wike and his minions as it concerns Amaechi and the $43million and Ikoyi property. The false accusations by Wike is purely diversionary, a political smear campaign against Amaechi by Wike, while he steals Rivers State blind. The fake claims is a figment of the imagination of Nyesom Wike, an ignoble fellow who’s so reckless, irresponsible, and disgraceful, and has debased the high office he holds in trust for the people. Wike is a rabble-rouser and should not be taken seriously. He has made several false claims like this in the recent past and never went the whole length to prove it because he had no proof. Many would recall how Wike was screaming all over national television stations just before the Rivers State legislative Rerun elections that he had an explosive video, containing earth-shaking revelations and he would show the video on national TV. Till date, no video, just talk talk and talk, telling more and more lies.”

    “Yet again, we challenge Wike to charge Amaechi to court if he has any shred of evidence that the money belongs to Rivers State and was kept in the Ikoyi apartment by Amaechi. But like his numerous frivolous accusations in the past, we know he won’t go to court. He has nothing to substantiate his blatant lies. This Wike’s recent tale like his previous ones is a big sham, a disgraceful political drama, and a campaign of calumny to defame and destroy the sterling reputation of Rotimi Amaechi. This is now Wike’s sole life ambition.”
    “The false accusations by Wike is purely diversionary, a political smear campaign against Amaechi by Wike, while he steals Rivers State blind. The fake claims is a figment of the imagination of Nyesom Wike, an ignoble fellow who’s so reckless, irresponsible, and disgraceful, and has debased the high office he holds in trust for the people.

    “Wike is a rabble-rouser and should not be taken seriously. He has made several false claims like this in the recent past and never went the whole length to prove it because he had no proof. Many would recall how Wike was screaming all over national television stations just before the Rivers State legislative Rerun elections that he had an explosive video, containing earth-shaking revelations and he would show the video on national TV. Till date, no video, just talk talk and talk, telling more and more lies.”

    “Yet again, we challenge Wike to charge Amaechi to court if he has any shred of evidence that the money belongs to Rivers State and was kept in the Ikoyi apartment by Amaechi. But like his numerous frivolous accusations in the past, we know he won’t go to court. He has nothing to substantiate his blatant lies.

    “This Wike’s recent tale like his previous ones is a big sham, a disgraceful political drama, and a campaign of calumny to defame and destroy the sterling reputation of Rotimi Amaechi. This is now Wike’s sole life ambition.”

    “Finally, we want Nigerians to note that Wike’s reckless, irresponsible and fictitious tirade against the President Buhari administration at his media briefing of Friday is a declaration of war against the Federal Government.

    “This has been his regular past time in recent times, making false allegations against the Federal government and threatening the President Buhari administration with fire and brimstone,” Amaechi stated.

  • EFCC recovers another huge cash in Lagos apartment

    EFCC recovers another huge cash in Lagos apartment

    The Economic and Financial Crimes Commission (EFCC) on Wednesday recovered yet another huge sum of dollars, pounds and naira in a Lagos apartment.

    According to the EFCC, about $38m, N23m and £27,000 cash was found during a sting operation by its operatives from the Lagos Zone.

    N250m had earlier been recovered from the Balogun market in Lagos on Monday.

    See Video below of the counting of the money.

    Details later

     

  • Forex: CBN makes $10,000 special midweek sales to 2991 BDCs

    Forex: CBN makes $10,000 special midweek sales to 2991 BDCs

    The Central Bank of Nigeria (CBN) in its bid to sustain foreign exchange liquidity said it would make a special intervention forex sales of 10,000 dollars to each of the 2991 licensed Bureau de Change (BDC) on Thursday.

    The Acting Director, Corporate Communications, CBN, Mr Isaac Okorafor said this in a statement on Wednesday in Abuja.

    According to him, the aim of the special intervention is to meet the upsurge of forex requests of low-end customers, which has been on the sudden increase in the past few days.

    Okorafor said the special intervention does not in any way contradict the Bank’s newly amended sales policy of trading not more than 10,000 dollars to BDCs once a week.

    The News Agency of Nigeria (NAN) reports that the CBN had last week increased forex sales to BDCs from 8,000 dollars once a week, to 10, 000 dollars twice a week, amounting to 20, 000 dollars weekly per BDC.

    However, the CBN later changed its plans and decided to instead sell only 10,000 dollars once a week, which it did on Tuesday in order to reduce logistical difficulties.

    The BDC operators had expressed disappointment over the reversal.

    They said that 10,000 dollars a week was insufficient to meet forex demand at that segment, thus CBN plans to have a converged inter-Bank, BDC and parallel market rate may not be achieved. (NAN)

  • CBN continues forex liquidity boost with additional $240m

    CBN continues forex liquidity boost with additional $240m

    The Central Bank of Nigeria (CBN) on Monday continued boosting the country’s foreign exchange liquidity with 240 million dollars, part of which 150 million dollars will go to dealers in the interbank wholesale window.

    Those who stand to gain from the sales through the interbank wholesale auction window include manufacturers, importers of aggro-machineries, plants and critical raw materials.

    The Bank’s Acting Director, Corporate Communications, Mr Isaac Okorafor in a statement, said that the bank also released 90 million dollars to meet requests for invisibles such as travel allowances, medical and school fees.

    He said that henceforth, the apex Bank would sell 10,000 dollars only to low-end Forex dealers once a week rather than the bi-weekly sales it announced earlier.

    He said that the CBN had adjusted BDC sale days to Tuesdays only, to reduce logistic difficulties.

    According to Okorafor, the CBN has also directed all banks to pay cash over the counter to desiring foreign exchange customers to further ease the access of customers.

    He further urged customers to report any un-cooperating bank to the CBN through available platforms.

    The CBN, in the recent months, has made offers and releases of over 2 billion dollars to the inter-bank foreign exchange market in its bid to sustain Forex supply to different categories of users.

    Last week, the Naira began to weaken against the dollar, which was attributed to alleged hoarding of the dollars by commercial banks, in spite of receiving over 200 million dollars.

    The Naira on Friday closed at N394 to a dollar.

    It, however, later showed signs of recovery, when it sold at N388 to a dollar on Monday in Abuja. (NAN)

  • Why Naira value keeps falling in spite of CBN’s intervention

    Why Naira value keeps falling in spite of CBN’s intervention

    Alhaji Aminu Gwadabe, the President, Association of Bureau De Change Operators of Nigeria (ABCON), has blamed the recent depreciation of naira on the speculators’ onslaught and resistance by the banking industry.

    Gwadabe told the News Agency of Nigeria (NAN) on Saturday in Lagos that the refusal of some banks to sell the invisibles such as personal and business travel allowances frustrated naira recovery.

    The ABCON chief said that the CBN had recently accused the banks of frustrating its policies.

    He said it was ironical that the naira started losing strength in spite of the CBN’s review of the rates from N375 to N360 to a dollar.

    According to him, the naira started trading on Monday with a promising outlook for sustained strength against the dollar and other currencies, but it began to somersault at the middle of the week.

    “The naira ended deeper northward to close at N394 to a dollar on Friday, translating to 10 per cent depreciation of what was recorded during the week,’’ Gwadabe said.

    The association president said that the removal of disparity in applicable exchange rates among the BDCs, Travelex and the banks should have strengthened the nation’s currency.

    The financial expert said, “CBN’s knack for last minute solution as recent development has shown, accounted for the misfortune of the naira at the foreign exchange market.’’

    Gwadabe said that the battle for the soul of the naira would be won if the CBN could boost liquidity to the BDCs for effective unification of rates.

    “It is evident that the injection of liquidity to the interbank market rather than the BDC sub-sector is not effective and transparent for sustained FOREX rate convergence and unification.

    “Statistics from the CBN shows that about 20 banks get 80 million dollars weekly for invisible transaction as against the 20 million dollars weekly for over 3000 CBN licensed BDCs nationwide.

    “The CBN should enhance public awareness to guide end users on FOREX availability and applicable exchange rates.

    “The CBN should diversify the buffers from oil proceeds to foreign investors inflows and Diaspora remittances,’’ Gwadabe said.

    He urged the CBN to sponsor a bill for an act of the National Assembly for naira convertibility in West Africa, as part of the solutions to full recovery of the naira.

    Gwadabe said that naira was currently a means of exchange in about 15 countries in Africa.

    He urged the Federal Government to increase security surveillance at the nation’s airports and land borders to checkmate illegal foreign cash evacuation.

    NAN reports that the naira ended the week on a negative note, eroding the 12.36 appreciation it recorded in its trading last week.

    The Nigerian currency appears to be on trial again, as experts argue that winning the battle for the soul of the naira requires more than pulling the monetary policy lever.

    They called for a blend of fiscal and monetary policy and indeed patriotism from all Nigerians to save the naira from further sliding. (NAN)

  • Dollars: High demand raises rate to N380

    Dollars: High demand raises rate to N380

    Increasing demand for the dollar at the parallel market on Thursday resulted in the rise of the greenback currency to N380 from N370 on Wednesday in Abuja.

    The News Agency of Nigeria (NAN) reports that the Naira also depreciated against the Euro, exchanging at N400, from N390 on Wednesday.

    The Naira, however, appreciated against the Pound Sterling, trading at N465 from N470 on Wednesday.

    A Bureau de Change (BDC) operator, who preferred anonymity, attributed the rise in the dollar exchange rate to the present high demand for the currency.

    He said high profile customers had begun going to the parallel segment to deposit in advance for available foreign exchange.

    “The demand at the black market is still high. You will think that it will reduce since the banks are now giving BTA to customers, but the reverse has been the case in the last two days.

    “This is a problem because price of commodities will not go down if the BDCs and parallel market cannot meet the demand.”

    Another operator, located at the popular Zone 4 area of Abuja metropolis, on anonymity, said that the market might not stabilise if the CBN did not increase Forex supply to BDC segment.

    “We got dollars from the CBN today at N360 as promised. However, 8,000 dollars per BDC in a week is too small. This amount needs to be upped to at least 50,000 dollars per week,” he said.

    With the losses recorded by the local currency in the last 24 hours, analysts say that the CBN needs to review its present strategy if it is to achieve its objectives of an exchange rate convergence.

    The CBN on Tuesday slashed the rate at which it sold forex to BDCs in Nigeria to N360 and directed the BDCs to sell to end users at not more than N362 to a dollar.

    This came barely 24 hours after the CBN’s directive to Deposit Money Banks (DMBs) in the country.

    The apex bank directed all DMBs to sell dollars obtained from it to retail end-users at not more than N360 to a dollar for invisibles such as school fees and medicals. (NAN)

  • CBN crashes dollar to N360 for PTA, BTA, tuition, medical fees

    CBN crashes dollar to N360 for PTA, BTA, tuition, medical fees

    The Central Bank of Nigeria (CBN) has directed all banks to immediately begin sale of forex for BTA, PTA, Tuition and Medical fees to customers at not more than N360 per dollar.
    CBN will sell to banks at 357 Naira per dollar. Banks are to post the new rates in the banking halls of their branches immediately. CBN will send examiners to banks to ensure the new rates are implemented. Banks are prohibited from selling FX funds meant for invisibles to BDCs.

    More details later

  • Naira gains 12.36 % in one week

    Naira gains 12.36 % in one week

    The Naira recorded an appreciation of 12.36 per cent at the parallel market in the last one week, the News Agency of Nigeria (NAN) reports.
    NAN reports that the Naira traded at N440 last Monday while it closed at N390 to the dollar on Friday.
    In the week under review, experts commended the Central Bank of Nigeria (CBN) for its intervention at the foreign exchange market, but appealed to the apex bank to eliminate the multiple rates in the market.
    As the Naira continues to appreciate, experts say it is necessary for the CBN to adjust applicable rates in different segments of the market in the overall interest of the economy.
    Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), said CBN-licenced BDCs incurred regulatory losses of N130 million in the week under review.
    Gwadabe told NAN that the losses came from the CBN’s disparity in applicable exchange rates among players in the market.
    According to him, the public has refused to buy foreign exchange from BDCs for invisibles such as medicals, school fees, and personal and business travel allowances at a rate above N375 to the dollar.
    The financial expert urged the CBN to promptly address the issue.
    NAN further reports that the CBN had injected over 1.5 billion dollars to the interbank market since it started its intervention in February.
    Stakeholders hope that the sustenance of the CBN’s efforts at the interbank market will further drive down the value of the dollar. (NAN)