The Naira appreciated against the United States dollar and other major currencies as demand pressure subsided, according to trading data. A similar scenario was spotted in the parallel market amidst election spending and late-year import demand by economic agents. At the investors’ and exporters’ foreign exchange (FX) market, the exchange rate settled at N445.33 from N446.33 despite moderation in the Read More
The naira appreciates at the beginning of the week with increase in foreign exchange (FX) inflows, thus reducing demand pressure at the Investors and Exporters window.
The battle to save the naira has been ongoing, and the latest move to redesign some notes is expected stem the local currency from its persistent depreciation, according to foreign currency analysts.
Weak local currency, coupled with a rising inflation rate has weakened purchasing power of the naira, affecting both corporate and individual finances. At the investors’ and exporters’ FX market, the Naira gained 0.37 per cent against the US dollar, rising to N444.7 from N446.33.
According to Market Forces, Africa, the parallel market rate, however, remained constant at N775 ahead of the 2023 election. Consequently, the gap between the official and black market rates is collapsing fast after spurious demand pushed the exchange rate curve higher in recent weeks.
Lower foreign currency inflows remain top issues combating naira stability but it is unlikely to go away on account of the import-dependency of Africa’s largest economy by gross domestic product size.
Despite higher global oil prices, Nigeria has failed to position itself strongly as exporting country due to a bottleneck in crude production; including oil theft among others.
Higher oil prices at the global level are fast reducing due to changing dynamics and instability in major economies – due to partial economic lockdown in China and Russia-Ukraine war.
On Monday, Brent crude price dipped 3.06 per cent to $81.07 a barrel. Meanwhile, WTI crude oil fell 2.59 per cent to $74.30 per barrel as a result of widespread street protests in China over the country’s strict COVID-19 policy.
The United States granted Chevron Corp a license to produce oil in Venezuela, dampening investors’ expectations for increased energy demand in the near future. FX market data show that the Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate traded within the range of N431.0-447.5 but closed at N446.33 last week.
This translates to a depreciation of -0.1% or N0.7 week on week. In the forwards market, the naira traded within the range of N447.0-465.8 per greenback in the foreign exchange market.
In the retail secondary market intervention sales (SMIS) market, the FX spot rate remained unchanged to close at N445 per dollar on Friday. As the naira holds strong across markets, the gap between the NAFEX and the parallel market rate has collapsed near 70 per cent.
According to data from FMDQ, NAFEX turnover increased by 20.5weeks $118.9 million on Friday, Coronation Research said in a market note.
Last week, analysts said the NAFEX window recorded an inflow of $126 million with the Central Bank of Nigeria accounting for 6.4 per cent, foreign portfolios investors (FPIs) accounting for 1.1 per cent, non-bank corporates accounting for 35.7 per cent, exporters accounting for 47.8 per cent, and others accounting for 9.0 per cent, according to a market report.
Meanwhile, the naira appreciated against the Chinese Yuan (CNY), according to data from the CBN, up +0.2 per cent to close at N62.2.
Former presidential aide, Reno Omokri has hailed the Central Bank of Nigeria (CBN) following the unveiling of new Naira notes. This is as Nigerians mocked the new naira saying it’s not worth it. Reacting, Omokri said the naira was not redesigned for beauty, rather the CBN did it for economic and security reasons. He also said that the Dollar is powerful because of Read More
The Central Bank of Nigerian (CBN) has announced that there won’t be extension to January 31, 2023 deadline for naira redesign.
The exchange rate of the naira took a treacherous flight path 12 days ago that sent excruciating pains down the spines of Nigeria’s fraudulent bureau de change (BDC) operators. Economy watchers and government thief catchers chuckled in utter disbelief. The naira, the currency of Africa’s largest economy, started the week on a historic miserable exchange rate of N910 to the Read More
Ahead of the 2023 elections, the Coalition of United Political Parties (CUPP) has said that the new policy of Central Bank of Nigeria (CBN) to redesign the naira notes is vital and will help to ensure a credible election in the February polls. Commending the CBN Governor, Godwin Emefiele for the policy, at a press conference in Abuja, the spokesman Read More
The Senate will provide legislative support to the Central Bank of Nigeria (CBN) for it’s decision to redesign N1,000, N500 and N200 naira notes. The senate after thorough debate on a motion moved by Senator Uba Sani on CBN’s policy to redesign the three naira notes, Wednesday November 16, 2022 agreed to support the CBN. The Lawmakers also questioned the Read More
Nigerian socio-political activist, Deji Adeyanju, has revealed the people the Central Bank of Nigeria (CBN), targeted with its naira redesign policy. According to him, the policy was targeted at the opposition political parties. Adeyanju said the CBN policy makes it difficult for the opposition to move money around with the elections around the corner. Speaking with journalists, the Kogi-born activist, however, said the Read More
Financial experts have expressed their doubt over the ability of the Naira to sustain its weeks of rallies against the dollar at the forex market if certain things are not put in place by the government. The naira, which nearly hit N900/$ early last week, made a major comeback after the Central Bank of Nigeria (CBN) also injected an unspecified Read More
The International Monetary Fund (IMF) was the first to raise the red flag over the stampeded dollarisation of Nigeria’s tottering economy. The global lender warned that the stampede in Nigeria’s foreign exchange market would worsen the nation’s devastating hard currency deficit. Last week developments in the foreign exchange market proved that the IMF was tragically prophetic. Treasury looters reduced the Read More
There have been mixed actions to the announcement by the Central Bank of Nigeria (CBN) to introduce redesigned N200, N500, and N1000, BENJAMIN UMUTEME looks at what Nigerians have been saying. Since the announcement by the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, late October about plans to redesign the three highest denominations of the naira, there Read More
Agusto & Co has upgraded the rating of EDC Nigeria Money Market Fund (‘EDC MMF’ or ‘the Fund’) to A(f). Funds rated ‘A(f)’ are deemed to have low to moderate exposure to downside risk, impairment of net asset value in the medium term. EDC MMF unit trust scheme which was launched in February 2017 is being managed by EDC Fund Read More
The Naira, on Wednesday, appreciated against the dollar at the parallel section of the foreign exchange market amid increased liquidity. The exchange rate still varies largely across the markets based on the location and volume of transactions. In a conversation with some traders at the International Airport Lagos, they are selling dollars at the rate of N840/$1 for cash transactions, Read More
With the black market exchange rate high at about N900, the importers of the 41 items on the forex banned list of the Central Bank of Nigeria, which includes rice, private airplanes/jets, Indian incense, tinned fish in sauce (sardines), amongst others will have to increase the price of their products, Blueprint investigation has revealed. Individuals and traders are still buying Read More
Increasing higher demand for foreign currencies, particularly the dollar has dragged external reserves lower by 0.2 per cent, while the naira struggles to retain value in the Investors’ and Exporters’ forex exchange (FX) window after it suffered massive devaluation due to spurious demand for the dollar in the black market. The monetary authority has maintained a no devaluation policy position Read More
Nigeria’s foreign exchange market is in turmoil. The predicted stampede expected to follow the plan by the Central Bank of Nigeria (CBN) to redesign the naira has thrown the market into confusion. Treasury looters are scrambling to dollarise their loots. The naira plunged last week to an abysmal exchange rate of N870 to the dollar, and might hit the N1, Read More
Forty Eight hours after announcement of Naira redesign fixed for December 15, 2022 by the Central Bank of Nigeria (CBN), the Minister of Finance, Budget and National Planning, Zainab Ahmad, has disowned the policy. The Minister who commented on the policy in response to question raised by Senator Opeyemi Bamidele (APC Ekiti Central) during 2023 budget defence session she had Read More
The Nigerian naira has crashed against the US dollar in the latest statistics. According to Nairametrics, naira plunged to N775/$, two days after the Central Bank of Nigeria (CBN) announced it was redesigning the 200, 500, and 1,000 naira notes. On Friday morning, October 28, 2022, the exchange rate between the naira and the US dollar plunged sharply, trading at a minimum Read More
A group under the aegis of Ohanaeze Youth Movement has commended the Governor of Central Bank of Nigeria, CBN Godwin Emefiele for finalizing arrangements for the new Naira notes which will begin circulation from December 15, 2022. The group, in a statement by its Information Director Nzube Ugochukwu said the decision of CBN to redesign the Naira has put currency Read More
The Central Bank of Nigeria (CBN) has revealed that it will redesign the N200, N500, and N1,000 notes. CBN Governor, Godwin Emefiele, who disclosed this during a special press briefing in Abuja on Wednesday said the apex bank will begin circulation of the notes as from December 15, 2022. The CBN boss said the redesigning project was as a result Read More
Governor Nasir el-Rufa’i of Kaduna state has commissioned the N2.5 billion Falgates Rice Mill and the multi-billion Naira Galaxy Mall as part of the 7th Kaduna Economic and Investment Summit (KadInvest 7.0) which kicked off Thursday. Falgates is an agric and agro-allied company, which has the largest rice mill in Kaduna state, situated at Sobawa, Rigachikun in Igabi local government Read More
The naira has fallen to a record low of N740 to $1 on the black market as a result of Nigeria’s inability to profit from recently high oil prices due to widespread oil theft. Without international assistance and coordination, oil theft in Nigeria will keep hampering the nation’s chances of obtaining enough forex ‘ammunition” to keep the naira stable The Read More
The Nigerian local currency, the Naira, has crossed the new red line at the Investors’ and Exporters’ Foreign Exchange (FX) window on the back of sustained demand pressures across the markets. The exchange rate at the Investors and Exporters FX window established in 2017 to ease pressures for manufacturers and other investors have moved upward from as low as N415 Read More
The Nigerian naira has collapsed to a new record low, trading at a minimum of N730/$1 on Thursday morning at the open market, a 0.69 percent drop from the previous day. The fall in the exchange rate is following the move by the apex bank to raise the interest rate to a 20-year high of 15.5%, representing 150 basis points Read More
Naira appreciated to N701/$ at the close of August from over N703 to N701/$ yesterday. As at last weekend it exchanged for N698 to a dollar but according to the P2P foreign currency segment, Dollar to Naira exchange rate today, 31st August 2022 is set at N701.33/$1. Compared to the same time it traded yesterday, the Naira was exchanged at Read More
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