Sell 1 dollar at N360 – CBN orders commercial banks

The Central Bank of Nigeria, CBN, on Monday directed all deposit money banks to immediately commence the sale of foreign exchange to their customers at N360 to the dollar.

In a statement by the apex bank spokesperson, Isaac Okoroafor, all customers requesting forex for their basic transport allowance and personal transport allowance, tuition and medical fees, would henceforth get it at an exchange rate not more than N360 to 1 dollar.

The terse statement reads, “The CBN to sell forex to banks at N357/$1, while banks will sell to their customers at N360/$1 for invisibles (BTA, medicals, fees, etc),” the apex bank said on Monday.

“CBN directs banks to post new rates in the banking halls of their branches immediately. CBN examiners to visit banks to ensure the new rates are implemented.

“CBN prohibits banks from selling forex funds meant for invisibles to BDCs”

The apex bank said it would sell to commercial banks at N357 per dollar and banks are to post the new rates in their banking halls of their branches immediately.

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Naira hits N495/dollar as forex scarcity lingers

The Naira on Thursday depreciated further at the parallel market, ebbing close to the projection of speculators, the News Agency of Nigeria reports.

NAN reports that at the twilight of 2016, speculators forecasted that the Naira would exchange at N500 to a dollar.

The Nigerian currency lost N3 to trade at N495 to the dollar at the parallel market, from N492 posted on Wednesday, while the Pound Sterling and the Euro closed at N597 and N515 respectively.

At the official interbank window, the Naira closed at N305 to a dollar.

Trading at Bureau De Change (BDC) window saw the Naira close at N399 to a dollar, while the Pound Sterling and the Euro exchanged at N600 and N510, respectively.

Traders blamed acute forex scarcity for the spike in the exchange rate.

NAN

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$1 is now N490!

This is it, according to the exchange rates as of today September 30th. Dollar now N490!!!

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Naira crashes to 288/dollar at new official market

The naira plunged by 31 per cent to 288.85 against the United States dollar on Monday at the close of trading at the newly established interbank market. The local currency also depreciated at the parallel market where it closed at 346 to the greenback, down from around 330 and 335 on Friday.

The Central Bank of Nigeria had last week introduced new guidelines for the nation’s foreign exchange market with the adoption of a single structure through the interbank/autonomous window.

The naira, which was pegged at 197-199 per dollar before the emergence of the new forex policy, closed at 288.85 to the dollar on Monday, with the forces of demand and supply coming to play to determine the value of the nation’s currency after the CBN allowed it to float freely.

The CBN said it cleared a total foreign exchange demand backlog of $4bn with a dollar exchanging for N280 at the foreign exchange market.

The apex bank, in a statement issued on Monday by the Acting Director, Corporate Communications Department, Mr. Isaac Okoroafor, expressed satisfaction with the performance of the market on its first day.

The statement reads in part, “Nigeria’s new foreign exchange market made a robust take-off on Monday, June 20, 2016, clearing all the backlog of $4bn pent-up demand for foreign exchange, with the naira exchanging at 280 to the United States dollar.

“The objectives of the CBN to clear the forex demand backlog, perform its role as strictly a market intervention participant, and re-launch a functioning and efficient interbank market were met.

“The CBN, in line with its desire to promote a transparent, liquid and efficient market, and in order to engender market confidence and ensure credible price formation, intervened in the market through a special secondary market intervention sales addressing the issue of the FX demand backlog by clearing $4.02bn through spot and forward sales.

“This served in no small way to stimulate price discovery, with the determination of a marginal rate of $/280.00 through the special SMIS process. So, we can state to you categorically that the FX demand backlog has now been cleared and behind us for good.”

Okoroafor assured market participants and the general public that the bank was committed to making the FX market globally competitive, credible, transparent, liquid and efficient.

-Punch

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Economist urges CBN to solve forex issues to stabilise naira

An economist, Dr Ayo Teriba on Friday urged the Central Bank of Nigeria (CBN) to set a policy that would stabilise and protect the country’s currency from devaluation. In a statement in Lagos, Teriba said if the foreign exchange supply was not solved, the country faced the risk of repeated rounds of devaluation of its currency.

The economist said that the country’s foreign exchange challenges, occasioned by dwindling revenue from crude oil, was responsible for the pressure on CBN from some quarters to devalue the naira. He advised that the upcoming Monetary Policy Committee (MPC) meeting of the bank should address the issue of foreign exchange.

The expert said that solving the foreign exchange issues would stabilise the naira and liberalise capital inflow into the country. He said that the foreign exchange shortfall could be supplemented through export earnings, foreign direct investments and Diaspora inflows.

“Unless the MPC comes up with ideas on how government can boost FOREX inflows, there is nothing they can do about the naira,” Teriba said.

He urged the government to stimulate the economy by creating an enabling environment and incentives that would encourage the private sector to explore and drive the key sectors of the economy.

The News Agency of Nigeria (NAN) reports that the next MPC meeting is scheduled for May 23 and May 24. 

(NAN)

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