Business

Naira fails to appreciate against Dollar in forex market despite CBN intervention

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The Naira has failed to appreciate against the US dollar at the foreign exchange market despite the Central Bank of Nigeria’s recent additional release of $10,000 to Bureau De change operators.

FMDQ data showed that the Naira recorded another drop to N1308.52 per Dollar on Wednesday compared to N1,300.15 exchanged on Tuesday.

On a day-to-day basis, this represents an N8.37 drop from N1,300.15 per Dollar it traded on Tuesday.

In the parallel market section, the Naira was sold at between N1,250 and N1,300 on Wednesday from N1230 on Tuesday.

The development comes despite the Central Bank of Nigeria releasing 10,000 dollars each to BDC at N1,021 to a dollar with a caveat to sell at most 1.5 per cent above the bought price.

This is the third recent intervention for BDCs amid the bank’s effort to defend the Naira.

However, despite the FX rate record, the official window rate still surpassed the parallel market by N8.52.

Meanwhile, on Wednesday, the National President of the Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, blamed peer-to-peer cryptocurrency platforms like Binance for the recent depreciation of the Naira against the Dollar in the foreign exchange market.

In recent days, the Naira has slumped six times against the Dollar in the foreign exchange market.

Business

Naira appreciates at official market, gains 2.4%

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The naira gained at the official market, trading at N1, 278.58 to a dollar on Tuesday.

Data from the official trading platform of the FMDQ revealed that the naira gained N30.81 or 2.35 per cent, compared to the previous trading date on Thursday, March, 28, 2024 just before the Easter holiday at the rate of N1,309.39 against the dollar.

However, the total turnover reduced to $111.18 million on Tuesday, down from $857.78 million recorded on Thursday, March 28, 2024.

Meanwhile, at the Investor’s and Exporters’ window, the Naira traded between N1,312.00 and N1,250.00 against the dollar.

Business

Dollar supply surge by 180 per cent at forex market over CBN intervention

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The supply of US dollars surged at the official foreign exchange market, rising to 180.59 per cent to $440.13 million last Friday as commercial banks rushed to avoid the Central Bank of Nigeria’s regulatory sanction.

This comes as the Naira appreciated marginally to close Friday at N1,435.53 per Dollar after a turbulent week.

Data from FMDQ Security Exchange was disclosed on its official website at the close of work on Friday.

Similarly, the Naira recorded a gain in the parallel market last week, which traded at 1,440 per US dollar on Friday from N1,470 on Thursday last week.

Last week, the CBN issued a circular titled “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks”, expressing worry over the growing trend of banks holding large foreign currency positions.

Consequently, the apex bank mandated that banks’ Net Open Position, NOP must not exceed 20 per cent short or 0 per cent long of the bank’s shareholders’ funds going forward.

Business

Naira appreciates against Dollar

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Nigeria’s currency, the Naira, appreciated against the US Dollar in the foreign exchange markets on Thursday.

Data from the official FMDQ market indicated that the Naira closed on Friday at 780.14 Naira per US Dollar, representing a decrease of 216.61 Naira from the previous day when it traded at 996.75 Naira per US Dollar.

In the parallel market, the Naira was exchanged for 1130 Naira per US Dollar on Thursday, down from 1140 naira the previous day.

Dayyabu Mistila, a Bureau de Change operator at Zone 4 Abuja, disclosed that Nigerians bought Dollars at N1100 on Friday, down from N1140 on Wednesday.

Similarly, at the Binance P2P market, the Naira stood at 1054.2 Naira to the USD on Saturday morning.

The development comes barely 24 hours after a report emerged that the Central Bank of Nigeria had vowed to clamp down on currency speculators.

Naira strengthened against the Dollar when the Central Bank of Nigeria cleared forex backlogs to some commercial banks and airlines last week.

Business

CBN removes restrictions on forex, raises daily withdrawal limit to $10,000

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The Central Bank of Nigeria has eased limitations on domiciliary accounts, increasing the daily withdrawal limit to $10,000.

In a statement on Sunday, the apex bank of reeled out additional information to Deposit Money Banks (DMBs) on the operational adjustments to the foreign exchange market.

The development was announced after an extraordinary Bankers’ Committee meeting held to discuss the implementation and implications of the policy changes for the banking public.

“Domiciliary account holders are permitted to utilize cash deposits not exceeding USD$ 10,000 per day or its equivalent via telegraphic transfer,” the statement partly read.

The CBN claims that the new policies are intended to encourage transparency, liquidity, and price discovery in the foreign exchange market in order to increase FX supply, reduce speculative activity, boost consumer confidence, and guarantee overall market stability.

The apex bank also revealed that regular domiciliary account holders will now have free access to their account balances.

Previously, there was a limit on how much cash Nigerians could remove from their domiciliary accounts. However, the new development will make access to forex more easier for Nigerians.

Business

BDC operators arrested as EFCC raids Kano forex market

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A raid carried out by operatives of Economic and Financial Crimes Commission (EFCC) at Wapa forex market in Kano, has led to the arrest of at least 8 Bureau de Change (BDC) operators. Daily Trust reported that operatives of the Kano command of the anti-graft agency stormed the forex market on Tuesday evening with about eight vehicles and heavily armed personnel.

Speaking to the publication, one of the marketers said before the operatives of the EFCC arrived the market late Tuesday, some of his colleagues had partially closed their shops after hearing that some of their colleagues were arrested in Abuja.

Following the partial shutdown, many of them quickly shut down and ran out of the market when the operatives stormed the market. Many of them have also decided to stay off the market for a while until things normalize, as this is not the first time EFCC was raiding the market.

The marketer said;

“Every time they raid this market, the price of dollar will go up. For instance, today (Wednesday) a dollar is N845 as against N835 it was being sold yesterday (Tuesday) before the EFCC raided us.

“In fact, last week we were selling it at N750 but before the end of the week, it went up to N780. Problem is that it is because the government is not releasing dollars. The hike is not our fault. We buy expensive, so we have to sell it in a way to make a little profit.”

A senior staff of the anti-graft agency who confirmed the raid, said it was conducted as part of the agency’s efforts to support the federal government to arrest the recent hike of forex.

He also said that they’ve been closely observing the roles of the BDC operators in the unfortunate hike and that money launderers have been using the BDC to obtain forex on black market to avoid losing their ill-gotten funds in Naira to the newly announced redesign of Naira notes.

The senior staff added that eight suspects were arrested for forex racketeering and engaging into forex without legitimate license.

The suspects are now cooling off in the Kano command where investigation is currently ongoing after which the necessary action would be taken.

Business

CBN directs banks to set up teller points for forex

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The Central Bank of Nigeria (CBN) has directed Deposit Money Banks (DMBs) to set up teller points in designated branches for the sale of Foreign Exchange (forex) to Nigerians.

The directive was sequel to CBN’s decision to discontinue sale of forex to Nigerians through Bureaux de Change operators.

The directive was contained in a letter to the DMBs by Haruna Mustafa, Director, Bank Supervision Department of the apex bank, on Thursday in Abuja.

“Further to the Monetary Policy Committee briefing of July 27, all DMBs are hereby reminded to set up teller points at designated branches across the country.

This is to fulfil legitimate FX requests for Personal Travel Allowance, Business Travel Allowance, tuition fees, medical payments and SMEs transactions, among others.

“In this regard, DMBs are also required to adequately publicise the locations of the designated branches and make necessary arrangements to sell FX to customers in cash and/or electronically in compliance with extant regulations,” he said.

Mustafa further advised DMBs to ensure that no customer was turned back or refused FX provided that documentation and all other requirements are satisfied.

“Equally, undue delays, rationing and/or diversion of FX is strongly discouraged whilst DMBs are required to establish electronic application and alert systems to update customers on status of their FX requests,” he added.

The CBN also pledged to closely monitor banks’ conduct and compliance with the directive in order to ensure an efficient FX market for all legitimate users.

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