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Tag: Isaac Okorafor

  • CBN injects $195m into foreign exchange market

    CBN injects $195m into foreign exchange market

    Following its 800 million dollars intervention in the inter-bank Foreign Exchange (FOREX) Market last week, the Central Bank of Nigeria (CBN), on Monday, injected 195 million dollars into the market to meet the requests of customers in the various segments of the market.

    The acting Director, Corporate Communications, Mr.  Isaac Okorafor, said in a statement in Abuja that the bank would soon introduce a new FOREX retail option.

    Giving a breakdown of funds injected on Monday, he said the apex bank offered 100 million dollars to authorized dealers through interbank wholesale window, while it allocated 50 million dollars to Small and Medium Enterprises (SMEs) window.

    Okorafor said the Invisibles segment was allocated 45 million dollars to meet the needs of those who applied for FOREX to settle Business/Personal Travel Allowances, school tuition and medicals.

    The CBN spokesperson said the bank would continue to ensure adherence to its forex policy by insisting on transparency by stakeholders to guarantee stability in the market.

    The CBN made two major interventions in the inter-bank Forex market last week, totaling 831.5 million dollars.

    Since February 2017, the bank had boosted transactions at the Investors’ and Exporters’ segment of the market to the tune of 2.2 billion dollars.

    Also last week, the CBN, in a bid to tackle inflation, unveiled plan to mop up N200.32 billion from the Nigerian banking system through special Open Market Operation (OMO) at the rate of 16 per cent per annum.

    Meanwhile, the Naira had continued to maintain its stability in the FOREX market, exchanging at an average of N364 to a dollar at the parallel segment of the market on Monday.

  • Bankers’ Committee gets tough with cyber criminals

    Bankers’ Committee gets tough with cyber criminals

    The Bankers’ Committee on Thursday issued a strong warning to e-fraudsters, declaring that serial offenders will be taken out of the banking system.

    Speaking on behalf of the committee members, Access Bank Managing Director, Herbert Wigwe, said banks were working out modalities that would enable them to establish a central database to identify and punish e-fraud perpetrators.

    Data from the Central Bank of Nigeria (CBN) showed e-fraud has been on the rise in recent years.

    Although e-fraud rate in terms of value dropped by 63 percent in nearly two years, after the Bank Verification Number (BVN) introduction and improved collaboration among banks via the fraud desks, the total fraud volume rose significantly by 683 per cent within the period.

    Also, Nigeria experienced nearly 3,500 cyber-attacks with 70 per cent success rate and loss of $450 million within the last two years mainly through cross-channel fraud, data theft, e-mail spooling, phishing, shoulder surfing and underground websites.

    “There is the need for a central database for suspected fraudsters in the system. It will ensure strict deterrent for fraudsters that send unsolicited SMS. We are taking very strict measures against e-fraud. Repeat offenders will be taken out of the banking system,” Wigwe said.

    Central Bank of Nigeria (CBN) Director, Banking Supervision, Ahmed Abdullahi, said the apex bank is moving towards rate convergence in the foreign exchange market. He said the economy will soon be out of recession, and that the apex bank will sustain its interventions in the foreign exchange market.

    Abdullahi said both the SMEs Forex Window and the Investor/Exporter Forex Window are all geared towards ensuring that more liquidity is introduced into the forex market to stabilise the local currency.

    “In the investor/exporter window, prices will be determined by market forces. It will allow investors come in and trade at their own prices. We want to boost confidence in the market and allow more inflow of forex,” he said.

    The CBN director also said that banks will henceforth, commit five per cent of their profit after tax to small and medium enterprises and Agric funding.

    Also speaking at the committee meeting, CBN’s Spokesman, Isaac Okorafor, said the apex bank has eliminated “frivolous demand” for foreign currency by introducing a multiple exchange rate system and has been intervening on the spot and forward markets to boost liquidity.

    He said the multiple exchange rates was aimed at improving dollar supply while allowing investors to trade their own dollars at a more market-determined rate.

    The naira traded at 305.85 to the dollar on the official interbank market on Thursday and 390 on the black market. It was quoted at 379.89 on investors’ window. The CBN has been intervening aggressively on the spot and forward markets to prop up the naira.

    The CBN yesterday offered $100 million to authorised dealers to meet the requests of wholesale customers at the forex auction in the interbank wholesale window.

    Okorafor, again disclosed this, adding that no intervention was made in the retail window in yesterday’s auction. He, however, disclosed that the Bank continued its weekly sale of forex to the Bureau de Change (BDC) segment to meet the needs of low-end users.

    Furthermore, he said the CBN had observed that quite a good number of dealers were adhering to the forex guidelines. Nevertheless, he said the CBN will continue to monitor the activities of authorised dealers to ensure that no outfit or individual circumvents the laid down forex rules.

    While urging all concerned to put the Nigerian economy first, he reiterated that the CBN was determined to guarantee the international value of the Naira.

  • CBN offers $100m forex to dealers

    CBN offers $100m forex to dealers

    The Central Bank of Nigeria (CBN) on Thursday said it had offered 100 million dollars to authorized dealers as its intervention to stabilize the foreign exchange market.

    Mr Isaac Okorafor, Acting Director of the Corporate Communications Department of CBN.  Disclosed this in a statement on Thursday.

    Okorafor, however, said that no intervention was made in the retail window in Thursday’s auction.

    He said that the bank continued its weekly sale of foreign exchange to the Bureau de Change (BDC) segment to meet the needs of low-end users.

    The CBN spokesman further said that the bank had observed that quite a good number of dealers were adhering to the forex guidelines.

    Okorafor said the CBN would continue to monitor activities of authorized dealers to ensure that no outfit or individual circumvented laid down forex rules.

    He urged all concerned to put the Nigerian economy first, adding that the CBN was determined to guarantee the international value of the naira.

     

  • Forex: CBN opens special window for SMEs

    Forex: CBN opens special window for SMEs

    The Central Bank of Nigeria (CBN) has opened a special Forex window for Small and Medium Enterprises (SMEs) to enable SMEs import eligible finished and semi-finished items.

    The CBN spokesman, Isaac Okorafor, in a statement on Monday in Abuja, said that the SMES would be permitted to import items not exceeding 20,000 dollars for an enterprise per quarter.

    He said that the Bank’s special intervention was necessitated by its findings that a large number of SMEs were being crowded out of the forex space by large firms.

    “The sum of 20,000 dollars per SME customer per quarter can be affected by telegraphic transfer subject to completion of Form ‘M’ supported with proforma Invoice and the importer’s Bank Verification Number (BVN).

    “All processing banks are to ensure that the importers submit relevant shipping documents not later than 60 days from the date of the transfer.

    “Information posted on the CBN website defines Small and Medium Scale Enterprises are enterprises that have asset base (excluding land) of between N5 million and N500 million and a labour force of between 11 and 300,” he said.

    Okorafor further disclosed that the Bank had begun the massive sale of foreign exchange in different sectors of the Forex market this week.

    He said that on Monday, the Bank intervened by offering 100 million dollars to authorised dealers at the forex auction in the interbank wholesale window.

    He said that 41 million dollars was also sold for BTA, PTA, medical and tuition fees.

    On the BDC segment, he said the Bank had sold 10,000 dollars each to BDCs to meet the needs of low-end users in the country.

    According to Okorafor, 99.544 million dollars was also picked up by dealers out of the 100 million offered by the Bank during the last wholesale auction on Friday.

    Meanwhile, operators in the Bureau De Change (BDC) segment has duly funded their accounts with the CBN in anticipation of picking up the dollar equivalent of 10,000 on Tuesday.

    Market analysts believe that the CBN may continue its special intervention in the market with the sale of more dollars to BDCs, thereby bringing down the price of Dollar.

  • 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 slashes BDC rate from N390 to N360

    CBN slashes BDC rate from N390 to N360

    the Central Bank of Nigeria (CBN), on Tuesday slashed the rate at which it sells forex to Bureaux De Change (BDCs) in Nigeria to N360 and directed the BDCs to sell to end users at not more than N362 to a dollar.

    This is coming barely 24 hours after the CBN directive to Deposit Money Banks (DMBs) in the country to sell foreign exchange obtained from it to retail end-users at not more than N360 to a dollar for invisibles such as school fees and medicals.

    The CBN Acting Director of Corporate Communications, Isaac Okorafor in a statement, said that the CBN, under the new policy, will sell forex to the licensed BDCs at the rate of N360 while they will in turn sell to customers at a rate not more than N362 to a dollar.

    Okorafor said the objective of the new forex sale policy was to ensure a convergence of the rates in the interbank and BDC, stressing that the CBN remained committed to ensuring transparency in the market as well as fairness to end-users, many of who hitherto experienced challenges in accessing foreign exchange.

    He therefore urged licensed BDCs to play by the rule, cautioning that the CBN would not hesitate in sanctioning any erring dealer.

    Meanwhile, the CBN spokesman also disclosed to newsmen that the sum of 100 million dollars offered to authorised FOREX dealers in the interbank wholesale window to meet the requests of genuine wholesale customers was fully subscribed at the auction on Tuesday.

    Okorafor reiterated his call to all stakeholders to play their respective roles in ensuring a smooth running of the foreign exchange market for the benefit of the Nigerian economy.

    The Dollar seems to have stabilised at N370 to a dollar at the black market in Abuja.

  • CBN boosts forex supply with $195m

    CBN boosts forex supply with $195m

    The Central Bank of Nigeria (CBN) on Tuesday sustained the supply of foreign exchange to the market by releasing 195 million dollars.

    The CBN acting Director, Corporate Communications, Mr Isaac Okorafor, who gave a breakdown of the release, said of the amount 150 million dollars was released  through wholesale auction.

    He said that the  remaining 45 million dollars was for medicals, tuition, Personal and Business Travel Allowance.

    Okorafor said that the Bank acted promptly and proactively in line with its promise to keep the market liquid enough to meet the needs of genuine requests.

    He said that banks were becoming saturated with foreign exchange, as most of them were now able to meet demands for foreign exchange within the stipulated time frame.

    “As you can see, all the pent-up demand for invisibles have been met to the extent that banks are urging customers to come and obtain forex,” he said.

    Okorafor reiterated the bank’s determination to continue to fund the importation of raw materials, plants and machinery for manufacturing, agriculture, and other eligible items.

    He also assured that the apex bank remained resolute in ensuring stability in the forex market by keeping an eye on the activities of authorised dealers in order to ensure sharp practices were reduced to the barest minimum.

    It will be recalled that the CBN had in the past two weeks pumped over 1.2 billion dollars into the foreign exchange market to stem liquidity challenges faced by businesses and individuals.

    Last week, the regulator pumped 170 million dollars into the foreign exchange market, as foreign reserves hit 30 billion dollars.

    Meanwhile the Naira continues to firm up against the dollar at the parallel market. The Naira today traded at N452 to a dollar as against N455 on Monday.

    Compared to Monday’s sales, the Naira has also appreciated against the Pound Sterling, trading at N540, while it fell against the Euro trading at N475 compared to the N470 it sold for on Monday.

    At the Bureau De Change (BDC) window, the Naira continues to trade for N399 to a dollar, while a Pound Sterling and Euro changes for N580 and N525, respectively.

    The Nigerian currency also traded at N306 at the interbank window

  • Naira appreciation: Economist advises Nigerians to import less

    Naira appreciation: Economist advises Nigerians to import less

    An economist, Prof. Uche Uwaleke, has advised Nigerians to import less to sustain the appreciation of the naira at the foreign exchange market.

    Uwaleke, who is an Associate Professor and Head, Banking and Finance Department, Nasarawa State University Keffi, gave the advice in an interview with the News Agency of Nigeria (NAN) in Abuja on Thursday.

    “ I expect a reduction in imported inflation and a general increase in the tempo of economic activities following the increase in reserves and appreciation of the naira in the parallel market,’’ he said.

    Uwaleke said the new foreign exchange measures by the Central Bank of Nigeria (CBN) were mainly designed to ease access to foreign exchange at the official window and reduce pressure on the shallow parallel market.

    He said the measures would ultimately close the wide gap between the official and parallel market rates and in turn discourage round tripping and rent seeking.

    Uwaleke said the increased supply of foreign exchange by the CBN was made possible by the accretion witnessed in foreign exchange reserves in recent time.

    “Its sustainability will depend on continuing favorable conditions in the international oil market with regard to oil price.

    “It will also depend on the sustenance of the current relative peace in the Niger Delta region which has enabled improved production,’’ he said.

    Mr Isaac Okorafor, the Acting Director, Corporate Communications in CBN, on Tuesday said that the apex bank had injected another 100 million dollars into the interbank foreign exchange market.

    Okorafor said the fresh injection by the apex bank brought the amount so far pumped into the interbank market in the last two weeks to 1.14 billion dollars for both forwards and invisibles.

     

  • CBN empowers banks to sell more BTAs, PTAs,

    CBN empowers banks to sell more BTAs, PTAs,

    The Central Bank of Nigeria (CBN) on Monday reviewed the foreign exchange policy, empowering banks to sell more forex to travelers and those paying school fees and medical treatment.

    The new foreign exchange policy is part of Federal Government’s efforts to increase the availability of forex in order to ease the difficulties encountered by Nigerians in obtaining funds.

    CBN Spokesman, Isaac Okorafor, said the policy requiring banks to provide direct additional funding to banks to meet the needs of Nigerians for personal and business travel, medical needs, and school fees, takes immediate effect.

    The CBN expects such retail transactions to be settled at a rate not exceeding 20 per cent above the interbank market rate.

    “Having cleared the historic backlog of matured letters of credit at the inception of the current flexible exchange rate system, the CBN would immediately begin to provide foreign exchange to all commercial banks to meet the needs of both Personal Travel Allowances (PTA) and Business Travel Allowances (BTA) for onward sale to customers. All banks would receive amounts commensurate with their demand per week, which would be sold to customers who meet usual basic documentary requirements,” he said.

    He said the apex bank would meet the needs of parents, guardians and sponsors seeking to make payments for school and educational fees of their children and wards.

    “Such payments must be made by commercial banks directly to the institution specified by the customer. The CBN would ensure that this process is as smooth as possible and as many customers as possible get the foreign exchange they genuinely demand,” the CBN spokesman added.

     

  • Heritage Bank not distressed, says CBN

    Heritage Bank not distressed, says CBN

    The Central Bank of Nigeria (CBN) has denied claims that Heritage bank is in distress.

    The CBN in a statement issued on Tuesday in Abuja and signed by Isaac Okorafor, Acting director, corporate communications of the bank said the apex bank’s attention has “been drawn to false and malicious stories on the social media insinuating that Heritage Bank is under financial distress and therefore unable to discharge its obligations to its depositors.”

    The CBN, he said “wish to state that Heritage Bank is not in distress and as such its depositors should go about their transactions without fear.”

    The CBN spokesman further stated that no Nigerian Bank is in distress and that “the CBN, as the industry regulator, has a duty to depositors, in particular, and the economy, in general, to ensure the soundness of all financial institutions.”

    The CBN also stated that it will remain alive to its responsibility of ensuring banking system stability and soundness through constant monitoring and supervision of all licensed institutions. 

    Isaac Okorafor reiterated that “the banking system remains resilient enough to weather the current economic storm.”