Business

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

No Comments

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%

No Comments

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

No Comments

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

No Comments

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

Naira makes marginal gains of 0.04%

No Comments

Naira exchanged at N461.33 to the dollar on Tuesday at the Investors and Exporters window.

The rate represented an increase of 0.04 per cent compared to the N461.50 to the dollar for which it exchanged on Monday.

The open indicative rate closed at N461.55 to the dollar on Tuesday.

An exchange rate of N462.41 to the dollar was the highest rate recorded within the day’s trading before it settled at N461.33.

The naira sold for as low as N406.75 to the dollar within the day’s trading.

On Tuesday, a total of 48.28 million dollars was traded at the official Investors and Exporters window.

Business

Naira loses value slightly, exchanges N461.50 for one dollar

No Comments

The naira on Monday exchanged at N461.50 to the dollar at the Investors and Exporters window.

The figure represented a decrease of 0.05 per cent compared with the N461.25 it exchanged after the close of business on February 18.

The open indicative rate closed at N461.60 to the dollar on Monday.

An exchange rate of N462.06 to the dollar was the highest rate recorded within the day’s trading before it settled at N461.50.

The naira sold for as low as N440 to the dollar within the day’s trading, with $40.28 million traded at the official Investors and Exporters window on Monday.

Business

Naira exchanges at N461.50 to $1 in marginal gains

No Comments

The naira on Wednesday exchanged at N461.50 to $1 at the Investors and Exporters window.

The figure represented an appreciation of 0.04 per cent compared with the N461.67 it was exchanged on Tuesday.

The open indicative rate closed at N461.25 to the dollar on Wednesday.

An exchange rate of N462.02 to the dollar was the highest rate recorded within the day’s trading before it settled at N461.50.

The naira sold for as low as N446 to the dollar within the day’s trading.

On Wednesday, a total of 89.54 million dollars was traded at the official Investors and Exporters window.

Business, World News

Naira redesign targets looted funds – EFCC boss, Abdulrasheed Bawa

No Comments

The Chairman of the Economic and Financial Crimes Commission, Abdulrasheed Bawa, has said the decision to redesign the naira is aimed at returning hidden public funds.

The antigraft agency boss made this known in his recent interview with Deutsche Welle DW Hausa Service.

According to him, the Federal government wants people who hid the funds to deposit them in bank accounts. The EFCC chair insisted that there was no political motive behind the idea.

According to him, President Buhari had evaluated and accepted the advice put forward by the Central Bank of Nigeria on the redesign of the naira.

“These public funds were embezzled and we want them to return them; we have not told anyone not to bring this money out.

What the government said was to deposit the money into bank accounts, or else sanctions may follow.The redesigning of the naira in law is expected to be done after every eight years; Nigeria has 20 years without redesigning, almost 80% of the naira is not in the bank and the CBN is in the hands of people; so how can the government succeed? How can a country get 25% of foreign exchange which is a benefit from its currency in 10 days?

There is no political motive behind this; some people siphoned and hid public funds and that is why we want them to bring them out.

We are also calling on Nigerians and even non-Nigerians that all channels are accessible; if anyone knows someone who hid suspicious money, they should alert us and we will investigate it; when we investigate the money and get it, the whistleblower also gets 5 per cent.”he said

Business

Naira drops in value again, but major boost expected

No Comments

The Naira again traded weaker against the US Dollar on Monday, losing 16 kobo or 0.04 per cent at the Investors and Exporters (I&E) window, the official foreign exchange market.

According to data from FMDQ securities the Naira closed at N411.83/$1 in contrast to N411.67/$1 it traded last Friday.

The decline witnessed on Monday is coming despite a significant increase in the forex supply by 203.62 per cent with $173.64 million recorded as against the $57.19 million posted in the previous session on Friday last week.

However, at the black market, the Naira maintained stability against the US Dollar yesterday as its value remained unchanged at N520/$1.

Similarly, the Nigerian currency traded unchanged against the Pound Sterling on Monday, closing at N708/£1 the same rate it closed last Friday.

Nigerian currency however appreciated against the Euro by N2 to close at N604/€1 compared with N606/€1 of the preceding trading day.

Meanwhile a significant boost is expected to come for the Naira, as the International Monetary Fund (IMF) on Monday announced the disbursement of $650 billion Special Drawing Rights (SDRs) to member countries to boost reserves.

Ripples Nigeria had reported yesterday that the expected $3 billion to Nigeria will go a long way toward assisting the Central Bank of Nigeria in defending the Naira and help easily meet demands from investors, importers, and exporters for foreign currency.

Business

Naira value drops by N1.10 to the dollar

No Comments

No respite yet for Naira at the foreign exchange (FX) market, two weeks after the introduction of a new FX policy tagged “Naira 4 Dollar” scheme by the Central Bank of Nigeria (CBN).

Naira at the Investor and Exporter window on Friday closed the week, trading at N410.05 per dollar. This represents a slump by 0.26 percent or N1.15 when compared to the rate of 408.90 it opened on Monday, 15 March.

When compared to the N409.67 per dollar it closed after Thursday’s trading, Nigeria’s currency lost in value by 0.08 percent, according to data from the FMDQ Security exchange.

During Friday’s trading Naira exchange at a low of N394.00 and a high of N412.

Similarly, the foreign exchange turnover declined 8.36 percent week-on-week to $46.43 million at the close of the trading week on Friday, from $50.67 million recorded on the opening day of the market, data compiled by Ripples Nigeria from the FMDQ indicated.

The low liquidity again shows a continued persistence of dollar scarcity in the country amid increasing demand by end users.

MTN Nigeria last week blamed the dollar scarcity for its inability to repatriate profits to its parent company.

However, at the unofficial black market Naira remained unchanged throughout the week from the N485 per dollar it opened the week data from Aboki fx shows.

Following Friday’s trading the official market rate and unofficial difference remains at over N70 it opened the week.

Business

Naira falls against dollars on Wednesday

No Comments

Naira put up a poor performance against the dollar at the Investors and Exporters (I&E) window on Wednesday as trading closed at N394.17k per dollar.

This represents a 0.21 percent drop or 82 kobo loss when compared to the N393.35k per dollar that it exchanged for on Tuesday, according to data from FMDQ Securities Exchange Plc.

Although, at the black market, Naira remained steady in value to the dollars at N475/$ after two days trading.

According to analyst, the depreciation of dollars in the official market was attributed to strong demand for dollar by the end-users to meet their obligations.

Similarly, data from FMDQ Securities Exchange Plc shows that forex turnover rose to $89.50 million on Wednesday from $26.83 million recorded on Tuesday.

This suggests an increase in dollar inflow from Foreign Portfolio Investors (FPIs).

The chairman of the Presidential Economic Advisory Council on the market, Doyin Salami, wants Nigeria to develop a forex policy that allows the economy to grow.

For the past 10 months, the foreign exchange market has been under pressure following a sharp drop in oil prices occasioned by the COVID-19 pandemic.

The Central Bank of Nigeria had in the last weeks moved to clear the huge backlog of foreign exchange demand.

World News

Naira Slumps Further At Parallel Market

No Comments

According to Bureau De Change operators figures, the naira exchanged to the dollar for 473/$ at the parallel market.

The naira suffered further setback at the parallel market and Investors and Exporters forex window on Tuesday.

According to Bureau De Change operators figures, the naira exchanged to the dollar for 473/$ at the parallel market.

It had earlier gained in recent times after it closed the year 2020 at 467/$.

At the I&E window, the naira fell by 0.17 per cent to close at 394/$ on Tuesday.

It reached a low of 401 at the I&E window at the close of 2020.

However, the Central Bank of Nigeria maintained the official exchange rate at N379/$ on its website.

The Association of Bureaux De Change Operators of Nigeria recently appealed to the CBN to make BDCs payout agents for diaspora remittances.

The President, ABCON, Alhaji Aminu Gwadabe, said the apex bank should leverage the over 5,000 licensed BDCs to get dollars seamlessly to beneficiaries.

Gwadabe said this would help provide a more convenient channel for Nigerians in the diaspora to remit funds back to the country to boost economic development, Punch reports.

Business

Exchange rate weakens as dollar supply continues its decline.

No Comments

Forex turnover dropped by 37% as Nigeria’s exchange rate at the NAFEX window depreciated against the dollar to close at N386/$1 during intraday trading on Wednesday, September 30.

In contrast, the naira appreciated against the dollar, closing at N465/$1 at the parallel market on Wednesday, September 30, 2020, as the pressure on the forex market dropped due to independence day activities.

Parallel market: At the black market where forex is traded unofficially, the Naira appreciated against the dollar to close at N465/$1 on Wednesday, according to information from Abokifx, a prominent FX tracking website. This represents a N5 gain when compared to the N470 that it was exchanged for on Tuesday, September 29.

Currency developments

  • The local currency has strengthened by about 7.8% within the last one week at the black market, as the CBN introduced some measures targeted at exporters and importers, in order to try to boost the supply of dollars in the foreign exchange market, and reduce the high demand for forex by traders.
  • The CBN has sold over $250 million to BDCs since the resumed forex sales on Monday, September 7, 2020. This was expected to inject more liquidity to the retail end of the foreign exchange market and discourage hoarding and speculation.
  • However, the exchange rate against the dollar has failed to sustain the initial gains made, after the CBN announced plans to provide liquidity.
  • BDC operators have urged the apex bank to reconsider the margin allowed for the currency traders, as it was inadequate to meet their expenses.
  • We also noted that forex traders monitored during the previous week, appeared to hoard forex, as they anticipated further depreciation in the market.
  • There has been a drop in speculative buying of foreign exchange, although demand backlog by manufacturers and foreign investors still puts pressure, and creates a volatile situation in the foreign exchange market.

NAFEX: The Naira depreciated against the  dollar at the Investors and  Exporters (I&E) window on Wednesday, closing at N386/$1.

  • This represents a 25 kobo drop when compared to the N385.75 that it exchanged for on Tuesday, September 29.
  • The  opening indicative rate was N386.59 to a dollar on Wednesday. This represents a 9 kobo drop when compared to the N386.50 that was recorded on Tuesday.
  • The N386 to a dollar is the highest rate during intraday trading. It also sold for as low as N380/$1 during intraday trading

Forex turnover: Forex turnover at the Investor and Exporters (I&E) window, declined by 37%  on Wednesday, September 30, 2020 .

  • According to the data tracked by Nairametrics from FMDQ, forex turnover dropped from $120.51 million  on Tuesday, September 29, 2020, to  $75.83  million  on Wednesday, September 30, 2020.
  • The CBN had in the past few weeks moved to clear the huge backlog of foreign exchange demand, especially by foreign investors wishing to repatriate back their funds.
  • The drop in forex supply reinforces the volatility of the foreign exchange market. The supply of dollars has been on a decline for months due to low oil prices and the absence of foreign capital inflow into the country.
  • The average daily forex sale for last week was about $169.93 million, which represents a huge increase from the $34.5 million that was recorded the previous week.
  • Total forex trading at the NAFEX window in the month of August was about $857 million, compared to $937 million in July.
  • According to Reuters, the naira could weaken at the black market this week following the cut of interest rate by the CBN after the MPC meeting to boost credit as it works to stimulate the Nigerian economy that is heading towards a recession.
Close Menu

Privacy Policy