The Nation Newspaper

Tag: foreign exchange market

  • CBN summons currency dealers, others on development in forex market

    The Central Bank of Nigeria (CBN) has summoned all authorized currency dealers for a meeting to discuss development in the foreign exchange market.

    The invitation was contained in a circular released and signed by the bank’s Director, Trade and Exchange, Mr Ahmed Umar, in Abuja, on Friday.

    It explained that the meeting would engage the participants on development so far in foreign exchange market with a view to proffer solutions or to chart a way forward.

    Read Also: CBN, others urged to reposition power 

    The meeting is scheduled for Sheraton Hotel, Ikeja, Lagos, on Thursday, July 4.

    Apart from authorized currency dealers, the representatives of Nigeria Customs Service are also expected at the meeting.

    Other participants are representatives of Standard Organisation of Nigeria (SON) and those of National Agency for Food and Drug Administration and Control (NAFDAC).

  • LCCI decry exclusion of textile from Forex

    The Lagos Chamber of Commerce and Industry (LCCI) says the exclusion of all forms of textile materials from the foreign exchange market pose a threat to the N5 trillion fashion industry.

    Muda Yusuf, Director-General of LCCI, who disclosed this in a statement on Sunday in Lagos, noted that tailoring, accessories and garment industry would suffer a setback.

    Yusuf said that the industry which had created over 500,000 jobs was one of the fastest growing industries and had brought amazing opportunities for many young Nigerians to express their creativity and innovation.

    “The industry provides significant value addition to fabrics, whether imported or domestically produced, and the policy contemplation of the CBN will put all of these at risk,” he said.

    The News Agency of Nigeria (NAN) recalls that the Central Bank of Nigeria (CBN) on March 5, added all forms of textile materials to its FOREX restriction list to rejuvenate the textile industry and ensure that the needed growth was actualised.

    Yusuf noted that the fashion industry responded to changing tastes and trends in the global world.

    According to him, currently, the range of fabrics produced by local textile industry cannot support the fashion industry in terms of the quantity and quality.

    “Today, Nigeria is clearly the leader in Africa as far as the fashion industry is concerned.

    “This vibrant industry should not be sacrificed on the altar of textile industry re-generation.

    “This submission is not to diminish the importance of textile industries in any way or the significance of industrialisation. It is to underscore the importance of a strategic approach to industrialisation,” he said.

    Yusuf noted that the fundamental issues was to address infrastructure challenges, adding that the textile industry needed to be saved from the excruciating burden of high operating and production costs.

    According to him, as the country progresses to the next level of the Buhari administration, policy coordination and collaboration among the economic ministries and agencies is imperative.

    “There should be collaboration and coordination between the CBN, the Finance Ministry, Budget and Planning and Trade and Investment on trade policy issues.

    “The boundaries of monetary policy need to be properly defined. Exclusion of sectors from the forex market is not a monetary policy issue. It is trade policy matter.

    “Monetary policy is about managing liquidity to influence the direction of credit, exchange rate and inflation.

    “Trade policy formulation is not within the remit of the CBN. It is an inter-ministerial responsibility involving the Finance, Budget and Planning, Industry, Trade and Investment Ministries,” he said.

    He noted that the fiscal policy document clearly outlined import and export prohibition lists while the tariff book defined the various tariff measures applicable across sectors and range of products with relevant Harmonised System (HS) codes.

    He said that the private sector would like to see minimum policy shocks as the President Buhari administration stepped into the next level. (NAN)

  • BDCs boost forex receipts, account for over $20b yearly

    The Association of Bureau De Change of Nigeria (ABCON) has stated that one of the most efficient tools introduced in the management and stability of the country’s foreign exchange market by the Central Bank of Nigeria (CBN) was the involvement of the body in forex management.

    The Association’s national President, Alhaji Aminu Gwadabe, who spoke to The Nation in an exclusive interview in Lagos, stated that this is the first time the rate of Naira to other currencies has remained stabled for over one year.

    Gwadabe noted that this achievement was made possible by the partnership of BDCs with the CBN, which gave the former the opportunity to receive foreign currencies and sell at the CBN-regulated rates.

    According to him, over $20 billion come into the country annually through the BDCs, adding that the records of its members transaction goes a long way in helping the Economic and Financial Crimes Commission (EFCC) detect illicit financial transactions as well as cybercrimes.

    The ABCON boss noted that BDCs in India account for over 80$, saying that BDCs in India accounts for $30 billion annually as Indians are scattered all over the world.

    “The anti-money laundering and anti-terrorism laws are fast developing and taking shape and BDCs is part of financial institutions, though, the BDCs are the weakest link in the financial institution. It is easier to use them launder money. Having that scenario, it became very important to upgrade the knowledge of the BDCs and to sensitize them, hence, we embarked on the public sensitisation, through workshops, and training by Nigerian Financial Intelligent Unit (NFIU), an arm of the EFCC.

    “Part of the sensitisation is for our members to be able to easily detect a suspicious transaction so that it must be reported to the EFCC. There is a lot of security report that people are bringing in illicit funds to create havoc and to disrupt the peace of the country. Sometimes, these launders or money bags find it very easy to use these BDCs, so they prefer to use the BDCs because of the nature of some of the operators who do not keep records,” Gwadabe stressed.

    He said that BDCs were used as the vehicle to reach the unlicensed BDCs, which is the target of these money launders, as it is in line with antiterrorism financing.

    “We have a perfect relationship with the chairman of EFCC, CBN, the FIRS, and all other financial institutions. So, after that meeting in Lagos, we had a similar meeting with the EFCC in Abuja and Kano. This is to sensitise and train BDCs on the activities of money launders terrorism financing and to integrate reporting of these activities to the EFCC. We send our cash transection report of any amount that is above 5million, individuals and 10million for companies in the cash transaction in the NFIU. For instance, if you come to me with $10million, it is an obligatory requirement that such a transaction be reported. BDCs are also operated as an arm of the CBN. The only thing we are not doing is that we are not giving letter of credit. What the banks are doing, we are also doing.

  • CBN boosts forex market with $210m

    The Central Bank of Nigeria (CBN) yesterday injected  $210 million into the inter-bank foreign exchange market in continuation of its efforts to sustain liquidity in the market.

    The apex bank offered $100 million to authorised dealers in the wholesale segment of the market. The Small and Medium Scale Enterprises (SMEs) segment received the sum of $55 million while the sum of $55 million was apportioned to invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA)

    A statement from the bank’s Acting Director, Corporate Communications Department, Mr. Isaac Okorafor, confirmed the figures and reiterated CBN’s capacity to continue to sustain the foreign exchange intervention.

    Okorafor urged Deposit Money Banks to continue to honour requests from customers with genuine needs, noting that the Bank will continue to sustain liquidity in the foreign exchange market.

    Meanwhile, the nation’s currency continued on Wednesday, May 2 to maintain its stability in the forex market, exchanging at an average of N362/$1 in the BDC segment of the market.

  • We’ve restored stability in foreign exchange market, says President

    President Muhammadu Buhari  yesterday said the government had restored stability to the foreign exchange market.

    “We have restored stability in foreign exchange market and have recorded improvements in our foreign reserves which have grown from 24 billion US dollars in September 2016 to 42 billion US dollars by mid-February 2018 and now 46 billion US dollars.

    “This has been achieved partially because of the recovery of oil prices on the international market.”

    The President spoke during the launch of the Focus Labs for the Administration’s Economic Recovery and Growth Plan (ERGP) in Abuja.

    He added that his administration had made remarkable strides in creating a conducive business environment for investors, earning the World Bank’s ranking as one of the Top 10 most improved economies in 2017.

    “This has encouraged both local and foreign investments in the last few months,” Buhari added.

    The ERGP is a medium-term plan, 2017-2020, launched by the President in April 2017.

    ERGP sets out the direction of government policy for the economy to put it on the path of a strong, diversified, inclusive and sustainable growth.

    According to Buhari, the focus labs are part of the strategies being put in place to ensure implementation of the ERGP.

    He also pointed out that focus labs had been successfully used in other countries to boost their economies.

    The President said: “Many will recall that almost a year ago, I made a promise that this Administration will be committed to its full implementation.

    “The Labs we are flagging off today constitute one of the many strategies this Administration is taking to ensure that the Economic Recovery and Growth Plan is effectively implemented.”

    The President listed the key goals in the ERGP to include achieving sustainable, diversified and inclusive growth, becoming self-sufficient in basic commodities to curtail our food imports, diversifying economic base from crude oil dependence, empowering local businesses to create thousands of jobs and, improving the general wellbeing of the people.

    “In the past ten months, we have achieved several noteworthy milestones. As you are aware, economic growth returned in second quarter of 2017 due to a clear follow-through of some of the economic initiatives we set out to implement. Since then, we have consolidated on the recovery path reaching a Real GDP growth of 1.92% by the fourth quarter of 2017.

    Significant progress, he said, has also been made in the Agricultural sector with the expansion of the Anchor Borrower’s programme to more beneficiaries to boost local production.

    “We plan to build upon the success of the Presidential Fertilizer Initiative to double the 500,000 metric tons of fertilizer delivered to States, agro-dealers and farmers in 2017, by achieving production output of 1 million metric tons in 2018.

    “Today, our local food production, particularly rice, has witnessed a remarkable growth and has saved the nation millions of dollars of foreign exchange.

    “However, we are not relenting on our efforts until these improvements in economic indices translate to visible improvements in the lives of our citizens.”

    Minister of Budget and National Planning Senator Udoma Udo Udoma, said the Government had so far screened 240 projects for the ERGP focus laboratories.

    He said the government’s target was to mobilise at least 25 billion dollars or its Naira equivalent in private investments through the labs.

    “Many have asked whether we are not being too ambitious in targeting 25 billion dollars. My answer is that we have no choice.

    “We actually need multiples of 25 billion dollars, or its equivalent in Naira of new investments to create enough jobs to address the high unemployment rate in the country.

    “So, we will not stop after the first set of labs. After this first set of labs, we will hold more labs and more labs.

    “We shall keep on addressing all the constraints to investments until we achieve the goals we have set for ourselves,” he said.

    According to him, the implementation of the initiative will further drive quick delivery of some of the outcomes of ERGP and contribute to accelerating the growth momentum of the country.

    He said:  “The expected deliverables are the identification of projects followed by detailed implementation plans for each project with identified budgets and Key Performance Indicators (KPIs).

    “The process has become imperative because government is fully committed to the achievement of the primary objective of the ERGP, which is restoring the strength of the economy.

    “We cannot rest until we achieve the ERGP’s vision of a new Nigeria.

    “We cannot rest until we see a Nigeria that is transformed from a consuming nation to a producing nation, from an import dependent nation to an export oriented nation.

    “A Nigeria from a nation that survives on one single commodity to a nation that runs on multiple engines of growth,” he said.

    Udoma said that the government had invited potential and existing local and foreign investors, who may be interested in investing in any of the three focus areas to attend the closed-door sessions.

    “The three sectors are: Agriculture and Transportation, Manufacturing and Processing, and Power and Gas.”

  • Foreign exchange market gets CBN ’s $210m boost

    Foreign exchange market gets CBN ’s $210m boost

    The inter-bank Foreign Exchange Market has received 210 million dollars from Central Bank of Nigeria ( CBN ) to meet customers’ requests in various segments of the market.

    The CBN acting Director, Corporate Communications, Mr Isaac Okorafor, said 100 million dollars was sold to authorised dealers in the wholesale segment of the market.He said the Small and Medium Enterprises (SMEs) segment got 55 million dollars, while another 55 million dollars was allocated for customers who needed foreign exchange for tuition fees, medical payments and Basic Travel Allowance (BTA), among others.

    Okorafor assured Nigerians that the apex bank would continue to intervene in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability.

    He said the CBN would not renege on its promise to manage the foreign exchange market with a view to reducing the country’s import bills and halting depletion of its foreign reserves.

    Last week, the CBN intervened in the foreign exchange market to the tune of 325.64 million dollars to cater for requests in the airlines, agriculture, petroleum products and raw materials and machinery sectors.

    Meanwhile, the Naira continued its stability in the market, exchanging at an average of N361 to dollar in the Bureau de Change segment.

    NAN

  • CBN Injects $195m into Forex market 

    CBN Injects $195m into Forex market 

    The Central Bank of Nigeria (CBN), Monday, continued its intervention in the inter-bank foreign Exchange market with the injection of $195m.

    Figures released by the CBN show that it offered the total sum of $100million to the wholesale segment, while the Small and Medium Enterprises (SMEs) segment received the sum of $50 million.

    The invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance (BTA), among others, received $45 million.

    Confirming the figures, the Bank’s Acting Director, Corporate Communications Department, Mr. Isaac Okorafor,said “the injection was in line with the CBN’s pledge of making the Forex market liquid.”

    Mr. Okorafor reiterated that “the CBN remained determined to achieve its objective of rates convergence, hence the consistent intervention in the foreign exchange market.

    He urged Deposit Money Banks to only honour requests from customers with genuine needs, noting that the Bank does not intend to falter in its pledge to ensure liquidity in the forex market.

    Meanwhile, the naira continued to maintain its stability in the FOREX market, exchanging at an average of N363/$1 in the BDC segment of the market on Monday, October 9, 2017.

  • CBN boosts foreign exchange supply with $195m

    CBN boosts foreign exchange supply with $195m

    The Central Bank of Nigeria (CBN) on Monday, intervened in inter-bank Foreign Exchange Market with the supply of 195 million dollars as part of effort to stabilise the market.

    The acting Director, Corporate Communications of the apex bank, Mr Isaac Okorafor, in a statement, said 100 million dollars was offered through the wholesale segment.

    He said that Small and Medium Enterprises (SMEs) segment received 50 million dollars, while tuition fees, medical payments and Basic Travel Allowance (BTA), among others, got 45 million dollars.

    Okorafor said that the CBN was pleased with the state of the market, and assured that the bank would continue to intervene in order to sustain liquidity in the market and guarantee international value of the naira.

    He said the apex bank remained determined to achieve its objective of rates convergence, “hence the unrelenting injection of intervention funds into the foreign exchange market’’.

    Okorafor expressed optimism that the naira would sustain its run against the dollar and other major currencies around the world, considering the level of transparency in the market.

    He, therefore, advised stakeholders to abide by the guidelines to ensure transparency in the market.

    Last week, the CBN intervened in the various segments of the foreign exchange market with the injection of 396.8 million dollars.

    Meanwhile, the naira continued to maintain its stability in the market, exchanging at an average of N364 to a dollar in the Bureau de Change segment of the market.

     

  • CBN pumps $100m into forex market

    CBN pumps $100m into forex market

    The Central Bank of Nigeria, CBN has pumped a total $380million within two days into the Foreign Exchange Market. And the effect: a further strengthening of the Naira.

    The first tranche of $280m was released on Tuesday, On Wednesday, the bank offered additional $100 million to authorised dealers to meet the 7 to 15-day forwards requests of customers.

    Okorafor attributed the inability of the authorised dealers to fully subscribe to the CBN to a surfeit of forex in the system, which may lead to further appreciation of the naira.

    According to him, the trend monitored by the Bank indicated that deposit money banks were now able to meet the forex demands of their customers within the time frame stipulated by the CBN.

    He said that the CBN will on Thursday, continue its sale of 20,000 dollars to Bureaux de Change (BDCs) for onward sale to small-end users.

    Okorafor said feedback on the Bank’s forex new window for Small and Medium Enterprises (SMEs) in the country revealed that majority of small importers were heading for a major boost in their activities.

    This he said was responsible for the current appreciation of the Naira, stressing that the Naira will continue to gain strength with the relentless efforts of the CBN to to supply the market with forex.

    The spokesman also reiterated the determination of the CBN to continue to intervene in the various sectors of the interbank forex market in order to guarantee access to all categories of customers requiring forex for legitimate obligations.

    The News Agency of Nigeria reports that the Naira on Wednesday closed at N390 at the parallel market and N306 to a dollar at the interbank market on Wednesday.

    Meanwhile the World Bank has applauded the strategy of the CBN to increase sales of foreign exchange to the interbank market, Bureau de Change as well as other segments.

    It however, stressed the need for the CBN to ease restrictions on access to foreign exchange, which continues to hinder rigorous economic recovery in the country.

  • Nigeria’s inflation declines by 0.52 % in March

    Nigeria’s inflation declines by 0.52 % in March

    The National Bureau of Statistics (NBS) on Thursday said that inflation dropped by 0.52 per cent in March, the second decline recorded on the year- on- year basis.

    The first decline was recorded in February when inflation dropped by 0.94 per cent.

    In its latest Consumer Price Index (CPI) for March released in Abuja, the bureau stated that the index, which measured inflation increased by 17.26 per cent year-on-year.

    It, however, stated that the increase was a slower pace in March when compared to February consumer activities, which was 17.78 per cent.

    “This is the second consecutive month of a decline in the headline CPI on a year-on-year basis.

    “It represents the effects of stabilising prices in already high food and non-food prices as well as favourable base effects over 2016 prices.

    “It is also indicative of early effects of a strengthened Naira in the foreign exchange market.’’

    According to the report, price increases have been recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yield the Headline Index.

    It, however, stated that the major divisions responsible for accelerating the pace of the increase in the headline index were Housing, Water, Electricity and Gas.

    Others it said were Education, Food and Alcoholic Beverages, Clothing and Footware and Transportation Services.

    On a month-on-month basis, the report stated that the Headline index increased by 1.72 per cent in March, 0.23 per cent points higher from the rate recorded in February.

    The Food Index increased by 18.44 per cent (year-on-year) in March, slightly down 0.09 per cent points from the rate recorded in February, which was 18.53 per cent.

    It stated that the index was driven by increases in the prices of bread, cereals, meat, fish, potatoes, yams and other tubers and wine.

    It also stated that the slowest increase in food prices year-on-year was recorded by Soft Drinks, Fruits, Coffee, Tea and Cocoa.

    In addition, the report stated price movements recorded by All Items less farm produce or Core sub-index rose by 15.40 per cent (year-on-year) in March.

    It stated that it was down by 0.60 per cent points from the rate recorded in February (16.00) per cent.

    “During the month, the highest increases were seen in miscellaneous services relating to dwelling, electricity, solid fuels, clothing materials.

    “Increases were also seen in other articles of clothing, Liquid fuel, Spirits as well as Fuels and lubricants for personal transport equipment.

    “The Urban index rose by 18.27 per cent (year-on-year) in March from 18.57 per cent recorded in February, and the Rural index increased by 16.47 per cent in March from 16.98 per cent in February.’’

    On month-on-month basis, the report stated the urban index rose by 1.76 per cent in March from 1.52 per cent recorded in February.

    It further stated that the rural index rose by 1.69 per cent in March from 1.47 per cent in February.

    The News Agency of Nigeria (NAN) reports that CPI measures the average changeover time in prices of goods and services consumed by people for day to-day living.

    The construction of the CPI combines economic theory, sampling and other statistical techniques using data from other surveys to produce a weighted measure of average price changes in the Nigerian economy.