• JUST IN: End of the road as BUHARI bows to pressure, set to officially devalue NAIRA this year

    20/Jan/2017 // 2543 Viewers


    Nigeria will devalue its currency, the naira, later this year in an effort to improve liquidity and close the gap between the official and exchange parallel markets, a Reuters poll has shown.

    That expectation by seven of the nine economists polled this week comes even though Central Bank of Nigeria (CBN) Governor Godwin Emefiele has said he would not devalue the naira.

    An analyst and investor at Rich Management in Nairobi. Aly-Khan Satchu, said: “The possibility of a devaluation is certain; the question is the timing. They are eventually going to capitulate at some point this year, a similar scenario to Egypt at the end of last year – a big devaluation in the official rate.

    “Nigeria stubbornly held on to an official peg of 197 naira to the dollar for 16 months, until June of last year, hurting the economy. It subsequently floated the currency but maintained some measures to prevent further weakening. The naira currently trades at 305 per dollar. Dollar shortages meant the currency fell to close to 500 against the dollar last week on the unapproved open retail market.”

    Satchu said keeping the currency artificially high is effectively stalling the economy and making investment difficult.

    The CBN is expected to leave its benchmark interest rate unchanged on Tuesday, and for the rest of the year, at 14 per cent to halt rising inflation and support growth, the wider poll of 12 economists also found. After the apex bank added 300 basis points to borrowing costs last year to try and tame soaring prices, all 11 analysts surveyed said they expected it to keep its benchmark rate on hold next week. Inflation was uncomfortably high at 18.55 per cent in December, its highest in more than 11 years and the 11th straight monthly rise.

    Galloping inflation comes as Africa’s largest economy grapples with its first recession in 25 years, largely caused by the decline in global oil prices since 2014. Crude oil sales account for 70 per cent of government revenue. Inflation is expected to average 15.2 per cent this year and slow to 11.0 per cent in 2018.

    Cobus de Hart of NKC African Economists in a client note, said:“High inflation, however, remains the main stumbling block at this stage, but the CBN may become more willing to gradually loosen its grip on the naira as inflationary pressures start to ease somewhat this year.”

    The economy is expected to grow 1.5 per cent this year and 2.9 per cent next, although the most bearish analyst said it is possible the economy will contract 1.5 per cent this year.

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  • Again, Naira sinks, suffers another loss against US dollar on Thursday

    20/Jan/2017 // 1303 Viewers


    The Naira on Thursday remained indifferent to the sale of over 250 million dollars to licensed Bureau De Change (BDC) operators nationwide as it suffered another loss against the dollar.

    The News Agency of Nigeria (NAN) reports that the Naira inched against the dollar at the early hours of Thursday morning by 2 points but could not sustain the gain as it shed 3 points to close at N498 to a dollar at the open market.

    The Pound Sterling and the Euro traded at N596 and N520, respectively, at the open market.

    At the BDC window, the Naira exchanged at N399 to a dollar, CBN controlled rate, while the Pound Sterling and the Euro closed at N599 and N522, respectively.

    Trading at the interbank market saw the Naira weakening further as it closed at N305.50, from the N305.25 it recorded on Wednesday.

    Traders at the market were hopeful that the Naira would bounce back as quickly as possible.

    They, however, noted that the Naira was waging a guerilla-like war against speculators who manipulate the market for their selfish ends. (NAN)

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  • Nationwide jubilation as sustained CBN forex policy finally crashes the DOLLAR, strengthens NAIRA (See exchange rate)

    20/Mar/2017 // 8387 Viewers


    The Naira continued to gain traction following the Central Bank of Nigeria (CBN) implementation of its foreign exchange policy last month. 

    So far, the apex bank has injected well over $1 billion into the foreign exchange market (forex) with the latest  being $150 million ploughed into the market last Wednesday. The naira rebounded positively, closing at N444 to a US dollar.
    Spokesman of CBN, Isaac Okorafor, said at the weekend that the US dollars is set to crash further in the coming weeks as the apex bank plans to inject more forex into the market to meet the requests of genuine customers. “The CBN has so far kept to its earlier assurance to continue to supply enough forex to guarantee liquidity in the forex market. The CBN is committed to ensuring that the authorised dealers get sufficient supply to meet the demands of authentic customers of banks. 

    “The CBN had since February offered over $1 billion to the interbank market”, he explained.

    Okorafor expressed optimism that stability had been restored to the market, with individuals now being able to easily access forex to address personal and business allowances.

    A cursory view of the summary of the CBN intervention in the interbank market over the past two months, shows the highest bid rate was N360/$1, while the lowest was N315/$1. 

    Okorafor expressed confidence that the pressure being faced by both small and big-end users would soon be overcome.

    In the past few weeks, CBN has been making releases to the inter-bank foreign exchange market in its bid to sustain forex supply to different categories of users.

    This was as the President of the Association of Bureau De Change of Nigeria, Alhaji Aminu Gwadabe, said Travelex sold the dollars to his members at N381 per dollar.

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  • JUST IN: Another setback for Buhari as some Nigerian workers demand payment of salaries in US dollars

    20/Sep/2016 // 618 Viewers


    ABUJA—AS the economic recession bites hard on Nigerians, the leadership of Non-Academic Staff Union of Educational and Associated Institutions, NASU, has said that if nothing was done to arrest the free fall of the naira against international currencies, it will demand that the salaries of workers be paid in dollars.

    The union also berated state governors who owe workers’ arrears of  salaries, accusing them of being extravagant with the people’s resources.

    Speaking at the National Executive Council, NEC, meeting of the union in Abuja yesterday, the National President of NASU, Mr Chris Ani, stated that the issue of earned allowances for staff of universities, particularly NASU members, was still outstanding.

    He said: “Apart from the N30 billion released as part payment of the arrears in 2014, nothing has happened again, despite several meetings and negotiations on same.

    “Meanwhile, staff of universities who are owed allowances are seriously agitated and unhappy. ‘’Except government acts fast by releasing the needed funds for the payment of the arrears of the allowances, it may be difficult to sustain the present industrial peace in our universities.”

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  • Again, Naira sinks, FG reacts, set to wipe out black market operators (See eschange rate)

    21/Dec/2016 // 1010 Viewers


    The Central Bank of Nigeria (CBN) is seeking to ensure there is no black market as the naira continues its free fall against all major currencies due to forex scarcity thus closing down businesses and driving away foreign investors.

    On Wednesday, the naira was trading at 314 at the official market, with parallel market recording 490/$1.

    The British pound stood at 605, while the European Union currency, euro went for 510, a far cry of its 388,  327 range at the official side of the market respectively.

    Vice President YemiOsinbajo, and Kemi Adeosun, minister of finance, had previously said the CBN was working on a foreign exchange system that eliminates arbitrage in the forex market.

    Isaac Okorafor, the spokesperson for the bank, was quoted by Reuters to have said the bank was “ensuring that the forex market operates as effectively as we would envisage”.

    He also said the aim was to “ensure there is no black market” but did not give details of how this would be achieved.

    Godwin Emefiele, governor of the CBN, had said consistency that the parallel market could not be used to evaluate the true value of the local currency.

    “It is unfair to use the shallow market as a basis for determining the value of our currency. No one uses the Travelex rate at Heathrow to determine the exchange rate for the pound in the United Kingdom,” Emefiele had said.

    “So it is unfair to use that to determine the value of our currency. Those who are dealing in the market are doing so illegally. We should not be encouraging the tendencies of those people who are involved in capital flight, or those who want to conduct foreign exchange business without providing necessary documentation.”

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  • Buhari kicks as another powerful man of God breaks silence on Nigeria's anticipated break-up, predicts what will happen in 2017

    21/Dec/2016 // 4844 Viewers


    PARIS, DECEMBER 21, 2016: (DGW) As separatist feelings and agitations continue to grow, powerful man of God has released his predictions ahead of 2017 as security and economic challenges continue to ravage the country.

    The Catholic priest, a Catholic priest, Bishop Paulinus Ezeokafor of the Catholic Diocese of Awka, Anambra state in his Christmas and New Year message said that 2017 will not be different from and better than the outgoing year, 2016 but, in any case, urged Nigerians to be hopeful. 

    Nigeria will not break-up in 2017 - Bishop Ezeokafor

    He went further to say Nigeria will not collapse and advised Nigerian to continue to hope for the best.

    His words:

    “Nigeria will not collapse; our people must continue to live in hope, Nigeria will still come out of the woods and the responsibility of revamping the economy is that of all of us, not government alone.

    “I see hope but I encourage us to adjust to the new situation in the country.”

    “Any nation that cannot feed itself is doomed, we should endeavour not to spend on importation of food, I think the fall in oil price is good for us,” he said.

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  • Again, Naira sinks on Monday, importers speechless! (New exchange rate frustrating)

    21/Feb/2017 // 2001 Viewers


    PARIS, FEBRUARY 21, 2017:(DGW) THE Naira, Nigeria's domestic currency  has continued fall against all major currencies in spite of the measures recently put in place to salvage it.

    On Monday the Naira exchange for N520 per dollar on the parallel market even as the Central Bank of Nigerian, CBN fund commercial banks with additional forex to cater for school fees, medical and PTA/BTA fares.

    The currency depreciated sharply from N518 its opened trading on Monday, February 20, 2016 to N510 at midday trading.

    The local currency against the Pound Sterling and Euro to N635 and N542 at the parallel market.

    At the official market, the naira had since been pegged by regulators at 305 naira per dollar.

    Meanwhile, the Acting Director, Corporate Communications, CBN, Isaac Okoroafor has advised Nigerians, who have legitimate reasons to procure forex to approach their banks, where their needs would be catered for rather than go to the parallel market.

    “The banks have been directed to sell to all the people that will come up for it and they actually have been directed to open up avenues at the airport so that they can deal with these demands,” he explained.

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  • ; JUST IN: CBN directs banks to open foreign exchange outlets in major airports

    21/Feb/2017 // 619 Viewers


    To ease the burden of travellers, the Central Bank of Nigeria (CBN) has directed all banks to open Foreign Exchange outlets to sell dollars and other hard currencies at major airports.

    According to a statement signed on Tuesday by the CBN acting Director of Communications, Mr Isaac Okorafor, the banks are to do so as soon as logistics permit.

    Okorafor said that this would also ensure that transactions were settled at much more competitive exchange rates.

    “Similarly, the CBN is providing direct additional funding to banks to meet the needs of Nigerians for Personal and Business Travel, Medical needs, and School fees, effective immediately.

    “For medical and school fees, 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 that as many customers as possible get the foreign exchange they genuinely demand.

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

    Okorafor said that the apex bank had also reduced the tenure of its Forward Sales from the current maximum cycle of 180 days, to not more than 60 days from the date of transaction.

    “In order to maintain confidence in the FX market, the CBN will immediately begin implementing its articulated programme to clear all the unfilled orders in the interbank FX market.

    “Given our plan to meet all unfilled orders, and provision of FX to the manufacturing sector would remain the CBN’s strong priority, we will no longer impose allocation rules on commercial banks.

    “We will implement an effective intervention programme to support the inter-bank market to ensure adequate liquidity necessary to deliver an efficient FX market,” he said.

    Okorafor said that the FMDQ trading had also been advised to activate its Foreign Exchange Order-Book systems as soon as possible and also accelerate the on-boarding of FX clients on the FX Relationship Systems to ensure total transparency of the FX market.

    The apex bank urged market participants to assist in ensuring that these new measures were followed to preserve the external reserves, stability of the financial system and economic growth for the benefit of all Nigerians. (NAN)

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  • Naira continues drop against dollar

    21/Jul/2016 // 804 Viewers


    The Naira, on Wednesday, maintained its loss against the dollar at the parallel market, the News Agency of Nigeria (NAN), reports.
    The Nigerian currency, which lost three points on Tuesday to exchange at N368 from N365 on Monday, also traded at N368 to the dollar on Wednesday afternoon.

    The naira also maintained N478 to the Pound Sterling it posted on Tuesday, but weakened further against the Euro as it traded at N402 to a Euro, from N400 it exchanged on Tuesday.

    At the Bureau de Change segment of the market, the naira exchange at N370, N485 and N405 against the dollar, Pound Sterling and the Euro, from N366, N470 and N399 it traded respectively on Tuesday.

    Traders at the market said that the fall was as a result of shortage of foreign currency which could not meet up local demand.

    They expressed worry that the impact of the flexible forex policy is yet to be felt as the naira continues to depreciate in virtually all segments of the market.

    They noted that over 21 billion dollars remittance from the diaspora to the economy at the end of 2015 could not salvage the dollar scarcity.

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  • Economy will pick up in 2017 - FG

    21/Jul/2016 // 1197 Viewers


    The Minister of Budget and National Planning, Senator Udo Udoma, said these while answering questions from State House correspondents at the end of a meeting of the National Economic Council presided over by Vice-President Yemi Osinbajo.

    Udoma was joined at the briefing by  the Taraba State Governor, Darius Ishaku; and his Niger State counterpart, Abubakar Bello.

    The minister said Nigeria could only be said to be in recession if it records two quarters of negative growth.

    He said since the country had experienced negative growth in the first quarter, the country will be said to be in technical recession if the second quarter which is still being expected is also negative.

    He said, “Recession is basically when you have two quarters of negative growth. We had a first quarter of negative growth and we are still waiting to get all the figures for the second quarter which has just ended in June.

    “The National Bureau of Statistics will be giving us all the figures but if as we suspect, the second quarter is also negative, then of course technically you could say that we are in recession if those figures turned out to be so.

    “But even if we are not, the situation in the economy right now is one that of course we are addressing.”

    Udoma said while the Federal Government expected some of the factors that have been impacting negatively on the economy, some others were unexpected.

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