The Nation Newspaper

Tag: Naira

  • CBN’s interventions to keep naira stable in 2018

    CBN’s interventions to keep naira stable in 2018

    The naira will be stable next year as the Central Bank of Nigeria (CBN) continues its regular dollar injections into the foreign exchange market, traders said.

    The naira has been hovering at 360 to a dollar for investors, around the same level as in the parallel market. On the official market, it has been quoted at 306.05, a level at which the CBN has been intervening.

    Series of dollar injections into the economy totaling about $8 billion since February have helped the CBN to achieve long-term naira stability and curb volatility in the foreign exchange (forex) market.

    The CBN has in the last nine months, sustained its weekly dollar interventions in the forex market, a large part of it go into the interbank market, bureau de change (BDCs), Retail Secondary Market Intervention Sales (SMIS), wholesale spot and forwards auction segments, agricultural, airlines, petroleum products and raw materials and machinery sectors among others.

    The dollar injections were made to enable stakeholders in these segments secure enough forex for their operations, and in the process boost naira’s stability.

    Noteworthy, the gap between official and black market rates started to shrink since February 20, when the CBN resumed dollar interventions in key segments of the economy.

    In line with its intervention policy, the CBN had recently injected $287.89 into the SMIS.

    Data received from the CBN revealed that the figure was in favour of the agricultural, airlines, petroleum products and raw materials and machinery sectors.

    The bank’s Acting Director, Corporate Communications Department, Isaac Okorafor confirmed the figures, noting that the releases were targeted at sustaining liquidity in the market as well as boosting production and trade.

    He reiterated that the bank remained committed to ensuring liquidity in the inter-bank sector of the market and would continue to intervene in order to drive growth in the economy and guarantee stability in the market.

    With Friday’s rates hovering around N359 and N360/$1. Okorafor was upbeat that the bank’s forex intervention had effectively checked speculations around the Naira.

    He, however, disclosed that the Bank would continue to ensure enforcement through utilisation report and market intelligence.

    It will be recalled that the CBN had last Monday, also intervened in the inter-bank Foreign Exchange Market to the tune of $210 million comprising of $100 million for the wholesale segment and $55 million each for the Small and Medium Enterprises (SMEs) and invisibles segment.

  • Police arrests two hotel staff for $17,000 theft, 11 others

    Police arrests two hotel staff for $17,000 theft, 11 others

    The FCT Police Command have arrested two suspects for their alleged involvement in the theft of over $17,000 from the hotel room of a guest.

    The suspects who work as house keepers in one of the hotels in Asokoro area of Abuja stole the money from their victim.

    According to the Police, the suspects, Charles Ornguga and Festus Bekee changed the money into Naira and used it to purchase household appliances.

    Some of the things they bought with the money include; flat screen television,  refrigerator, CD home theatre, air conditioning, four burner gas cooker, microwave oven and stabilizer.

    This was disclosed in Abuja yesterday by the Command Spokesman, DSP Anjuguri Manzah during the parade of the suspects.

    Other suspects paraded are; Joseph Ayuba, John Paul Okoh, Emmanuel Friday, Moses Eze, Bulus Luka, Obiara Echezona Anthony,  Abdullahi Aminu, Bamidele Adams, Philip Sabelo,  Fraku Adamu, and Felix Omotayo.

    Items recovered from them include;  two locally made pistol, one AK 47 rifle, 36 rounds of live ammunition, one Mazda car with registration number ABJ788AH, two phones, one black bag, one rope, some wraps of weeds, one berreta pistol, one iron bar, one knife, one saw, one chisel, and cutlass.

    Four of the suspects, Joseph Ayuba, John Paul Okoh, Emmanuel Friday, and Moses Eze were said to be responsible for the death of Barrister  Efosa Edwin Roland.

    Breifing Journalists about their operation, the Command’s Spokesman,  Manzah said: “Police Operatives attached to the Command Special Anti-Robbery Squad  (SARS), arrested members of a notorious armed robbery gang who stabbed late Barrister Roland.

    “They stabbed him on the chest and robbed him of his car on the 8th of November, 2017  at about 2350hrs. The victim who was rushed to National hospital by Police operatives unfortunately he died at the same hospital on the 9th of November, at about 0445hrs while receiving treatment.

    “As a result of discreet police investigation, four suspects linked to the incident have been arrested but one of the suspects Moses Eze who sustained gun wound on his leg while trying to escape police arrest died while receiving treatment in the hospital”.

    Manzah also said that the suspects would be charged to court upon completion of investigation.

  • CBN pumps $210m into Forex market, dollar exchanges for N361

    CBN pumps $210m into Forex market, dollar exchanges for N361

    The Central Bank of Nigeria ( CBN ) has opened the foreign exchange market with the injection of another $210,000,000 to sustain liquidity. 

    Disclosing this to news men in Abuja on  Tuesday, the Acting Director, Corporate Communications Department, CBN, Mr. Isaac Okorafor the sum of $100m was offered to the wholesale segment, while the Small and Medium Enterprises (SMEs) segment got an allocation of $55 million. 

    The invisible segment (i.e. tuition fees, medical payments and Basic Travel Allowance (BTA), among others) was also allocated $55 million.”

    The Acting Director noted that the releases to successful bidders which have since been concluded are part of effort aimed at further enhancing ease of doing business in Nigeria.

    According to him, beside boosting liquidity in the forex market, facilitating trade and remittances for legitimate personal commitments are also expected to improve tremendously.

    Speaking on market conduct, Mr Okorafor enjoined authorized dealers to abide by the extant rules of the forex market as CBN would continue intensify monitoring of the market. 

    Meanwhile, the naira maintained its steady rate against the United States Dollar, exchanging for N361/$1 in the BDC segment of the market on Tuesday, December 5, 2017.

  • $9b interventions strengthen naira, forex market

    Dollar injections into the economy estimated at $9 billion since February have helped the Central Bank of Nigeria (CBN) to achieve long-term naira stability and curb volatility in the foreign exchange (forex) market, The Nation has learnt.

    The CBN has, in the last nine months, sustained its weekly dollar interventions in the forex market; a large part of it goes into the interbank market, bureau de change (BDCs), Retail Secondary Market Intervention Sales (SMIS) and wholesale spot.

    The dollar injections were made to enable stakeholders secure enough forex for their operations, and in the process boost naira’s stability.

    The gap between official and black market rates started to shrink since February 20, when the CBN resumed dollar interventions in key segments of the economy. Industry sources said the CBN has injected over $9 billion in the last nine months into the market.

    The CBN’s Deputy Governor, Financial System Stability, Joseph Nnanna, said the introduction of the Investors’ & Exporters’ (I&E) Forex Window was targeted at increasing forex supply; and allowing the timely settlement of transactions helped to achieve the current exchange rate. He said over $10 billion has been attracted to the economy through the I&E Forex window, adding that the window’s success rate exceeded stakeholders’ expectations.

    In line with its intervention policy, the CBN had, at the weekend, injected $287.89 million into the Retail Secondary Market Intervention Sales (SMIS).The intervention was in continuation of its resolve to guarantee liquidity in the foreign exchange market.

    Data received from the CBN revealed that the figure was in favour of the agricultural, airlines, petroleum products and raw materials and machinery sectors.

    The bank’s Acting Director, Corporate Communications Department, Isaac Okorafor, confirmed the figures, noting that the releases were targeted at sustaining liquidity in the market as well as boosting production and trade.

    He reiterated that the bank remained committed to ensuring liquidity in the inter-bank sector of the market and would continue to intervene in order to drive growth in the economy and guarantee stability in the market.

    With Friday’s rates hovering around N359 and N360/$1,. Okorafor, was upbeat that the bank’s forex intervention had effectively checked speculations around the Naira. He, however, disclosed that the bank would continue to ensure enforcement through utilisation report and market intelligence.

    It will be recalled that the CBN had last Monday, also intervened in the inter-bank Foreign Exchange Market to the tune of $210 million comprising of $100 million for the wholesale segment and $55 million each for the Small and Medium Enterprises (SMEs) and invisibles segment.

    Although the naira maintained its steady rate against major currencies around the globe, exchanging for N360/$1 in the BDC segment of the market on Friday, there is growing anticipation that the objective of the CBN to achieve rates convergence might be met before the end of December 2017 through a combination of factors such as Diaspora repatriation of funds and continued accretion to the country’s reserves.

    Market sources said the naira’s stability will continue in the coming months due to the CBN’s increased dollar sale to BDCs, the intervention for SMEs and favorable forex policy for investors, exporters and end-users.

    Also to boost naira’s position is the rising oil prices and production volume, which would translate to higher dollar earnings for the economy and improved foreign exchange reserves.

    But JPMorgan Chase & Co. and Renaissance Capital have said the naira rally, sparked by increased sales of foreign-exchange forwards and looser capital controls, are contingent on the CBN continuing to sell down its foreign reserves.

  • CBN weakens naira on spot market

    The Central Bank of Nigeria (CBN) yesterday sold dollars at N306 for the second after maintaining a level around N305 on the official spot market for two months, traders said.

    The move was minor, to signal a change in foreign exchange policy, traders said. The bank last sold dollars at N306 on the spot market in September and had sold the currency as low as N306.65 in July.

    Dollar shortages gripped the economy as crude sales, Nigeria’s mainstay, plunged at the start of an oil price rout in 2014. That triggered a recession last year and frustrated businesses, which had to find dollars on the black market as a result.

    To try to resolve the currency crisis, the OPEC member state has set up at least different six exchange rates, after devaluing the currency for retail users in February and allowing foreign investors to trade the naira at market-determined rates.

    Subsequently, the bank has been intervening with dollar sales almost daily on the spot and forward markets. It sold $500,000 on the spot market on Tuesday, traders said.

  • Fire razes valuables in Ondo

    Fire razes valuables in Ondo

    Properties worth millions of Naira were Tuesday morning consumed by fire in many shops belonging to some local traders in Akure, the Ondo state capital.

    The fire occurred near roadblock junction, opposite Chicken Republic eatery along Owo-Akure-Ilesa road.

    The inferno began around 2.00 am, spreading to other locked- up stores. Sources said it was caused by power surge.

    It was learnt that the late arrival of men of the Ondo State Fire Service allegedly aggravated the situation as many helpless traders result to self-help.

    Goods worth millions of naira that were left inside the shops were burnt beyond recognition.

    The shops, it was gathered, were owned by local traders including food sellers, barbers, fashion designers, beer parlour among other businesses.

    The traders affected by the incident were seen at the scene, wailing and counting their losses as passerby commiserated with them.

    One of the affected traders, Paul Emmanuel, said no fewer than twelve shops were burnt to ashes.

    According to him, goods lost to the fire attack were costly tailoring materials, cosmetics, foodstuffs, assorted wares among others.

    Emmanuel said that the midnight fire started from one of the shops before spreading to other locked up stores.

    He described the inferno as tragic as the traders had recently stocked their shops for sales ahead of the Christmas festivities.

    He said “I was called around 4 am that fire has gutted my shops at roadblock junction. By the time I got there, my shops and many others have been razed down.

    “Many goods worth millions of naira have been lost here and it is very sad especially with Christmas period around the corner.

    He said he called the Fire Service Brigade office but their men did not pick their phone on time.

    Another trader, Mrs Abimbola Adesanya, described the fire incident as unfortunate, adding that goods worth millions were lost.

    Adesanya pleaded with the government to assist the affected traders to revive their businesses.

     

  • Naira maintains N361.50 per dollar at parallel market

    Naira maintains N361.50 per dollar at parallel market

    The Naira on Wednesday exchanged at N361.50 to the dollar at the parallel market, maintaining same rate for the past one-week.

    The Pound Sterling and the Euro traded at N475 and N425, respectively.

    At the Bureau De Change (BDC) window, the naira was sold at N361.50, while the Pound Sterling and the Euro closed at N475 and N425, respectively.

    Trading at the investors’ window saw the naira closed at N360.27.

    Traders said that activities at the market had remained dull as very few customers were patronising them.

    Meanwhile, a credible BDC source told NAN that only about 1000 of its members bided for dollars on Monday because they had been selling at a loss for some months.

    NAN reports that BDCs buy dollars at N360 from the CBN and sell at N362 per dollar.

    Following the drop in rate to N362, BDCs had been selling at a loss, leading to the boycott of the CBN window by some BDCs. (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.

  • Naira sells at N364/$ as MPC holds rate

    Naira sells at N364/$ as MPC holds rate

    The Naira on Tuesday exchanged at N364 to the dollar at the parallel market as the Monetary Policy Committee (MPC) meeting of the CBN holds benchmark interest rate at 14 per cent.

    The News Agency of Nigeria (NAN) reports that the MPC left the benchmark interest rate unchanged at 14 per cent, alongside other monetary policy parameters.

    The CBN Governor, Mr Godwin Emefiele, said reducing interest rates may reverse the gains achieved in exchange rate stability and inflation rate reduction.

    The Pound Sterling and the Euro traded at N492 and N436.

    At the Bureau De Change (BDC) window, the Naira was sold at N362 to the dollar, while the Pound Sterling and the Euro traded at N492 and N436.

    Trading at the investor’s window saw the Naira closed at N306.05 and sold at N305.8 at the CBN official window.

    Traders said the consolidation of the gains recorded in the economy would lead to more stable
    Naira.

    CBN resolved to consolidate on the gains made in post recession economy. (NAN)

  • Naira dips to N367 as dollar scarcity hits BDC

    The value of the naira against the dollar is declining as bureaux de change (BDC) operators say the US currency is getting scarce in the parallel market.

    This is despite several efforts made by the Central Bank of Nigeria (CBN) to stabilise the naira by providing forex to various sections of the market.

    On Tuesday, the naira traded at N366 to a dollar and N367 in some parts of the country as against N365/N364 which it exchanged for on Monday.

    It exchanged for N475 to the British pound as against the previous closing price of N472 and exchanged for N434 to the euro as against N433 on Monday.

    On the international market, the naira traded at N359.43 to a dollar as against N353.99 which it traded at on Monday.

    It traded at N476.78  to the British pound as against 467.08 on Monday and N425.24 to the euro as against N429.80 on Monday.

    A BDC operator who spoke to TheCable said the dollar was getting scarce hence the reason for the increasing price.

    When asked if the central bank had stopped providing dollars as announced, he said the bank had not given the allocation for the week.

    At present, the apex bank provides forex to banks for basic travel allowance, school fees and health allowance needs of customers.

    CBN has also provided different forex rates to be used at the investors’ window.