CBN To Resume FOREX Sales To BDC’s On Monday


The Central Bank of Nigeria has said that it will resume sales of foreign exchange to operators of Bureau de Change (BDCs) from Monday, September 7, 2020.

According to a statement from the apex bank on Wednesday, the decision to inject liquidity into the FOREX market is crucial to boosting the naira against the dollar.

It added that the sale will be gradual and done twice a week while stressing that the interventions made in the Investors and Exporters (I&E) window will plunge market speculators into losses following their failure to heed to warning signs from the CBN.

Speaking on the issue, the Director, Corporate Communications Department at the CBN, Isaac Okorafor, said the sale will be done “twice a week – Mondays and Wednesdays, hence the BDCs had been directed to ensure that their accounts with their banks are adequately funded to ensure seamless transactions.”

While warning speculators to desist from what he termed unpatriotic tendencies, Okorafor urged registered BDCs to comply with the CBN guidelines as the Bank would not hesitate in sanctioning any erring dealer.

READ ALSO: China Is Nigeria’s Highest Import Partner, Total Trade At N6.2bn In Q2 – NBS

He also assured that those requiring foreign exchange for purposes of travel, educational fees, and other Invisibles could obtain such over the counter from their respective banks.

The naira began to rebound against the dollar, exchanging for N420 to a dollar in the BDC segment of the market on Wednesday, after trading for as high as N480 to the dollar on Monday in the I&E window, prompting fears that the Naira was in a free fall.

Meanwhile, the President of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe has expressed support for the CBN action, noting that the anticipated intervention in the BDC sector would ensure stability in the foreign exchange market.

According to him, speculators in the forex market have been dealt a huge blow with the sharp drop in the exchange rate, which he said would continue a downward trend with the resumption of international flights in and out of the country.

The apex bank had in March this year, suspended the sales of foreign currency to Bureau De Change operators (BDCs) in the country, for two weeks, following a request by the BDC for the CBN to grant them a two-week holiday as a measure to control the spread of the Coronavirus outbreak.

Recently, the Federal Government announced that it will open its airspace for international flights to resume on September 5, 2020.

Nigeria’s Foreign Exchange Inflow Hits $91b In 2017 – CBN

Nigeria's Foreign Exchange Inflow Hits $91b In 2017 – CBN


The Central Bank of Nigeria (CBN) says the aggregate foreign exchange inflow into the country increased to $91billion in 2017.

The apex bank revealed this in its ‘Draft 2017 Annual Report’ published on Wednesday.

It said the figure represents an increase of 45 per cent, from the $62.75 billion recorded in 2016.

According to the report, inflow through the CBN was $42.17 billion while inflow through autonomous sources amounted to $48.33 billion dollars.

At the same time, aggregate FOREX outflow from the economy increased by 31.8 per cent to $33.68 billion, compared to the total of $25.55 billion reported in 2016.

The CBN attributed the increase in foreign exchange inflow to its sustained intervention at the inter-bank and Bureau de Change segments of the FX market.

The report read in part, “Aggregate foreign exchange inflow into the economy rose by 45.0 per cent to US$91.00 billion, compared with US$62.75 billion in 2016. A disaggregation showed that inflows, through the CBN and autonomous sources, were US$42.17 billion and US$48.33 billion, constituting 46.3 and 53.7 per cent, respectively, of the total.

“A further analysis showed that foreign exchange inflow, through the CBN, rose to US$42.17 billion, compared with US$21.07 billion in 2016. A breakdown of foreign exchange inflow, through the CBN, showed that earnings from crude oil export increased by 1.9 per cent to US$10.37 billion, above the level in 2016.

“The development was attributed to price and output of crude, both of which rose relative to the preceding period. Similarly, the non-oil component of the inflow, through the Bank, rose by 192.2 per cent to US$31.80 billion in 2017, above the level in the preceding year. This was due mainly to: increase in foreign exchange purchases; government debt proceeds; securities lending cash collateral; and TSA and third-party receipts.”

CBN Boosts Foreign Exchange With $210m

CBN Boosts Foreign Exchange With $210m


The Central Bank of Nigeria (CBN) has intervened in the inter-bank market of the foreign exchange to the tune of $210million.

Figures obtained from the bank on Tuesday indicate that the wholesale sector of the market got a boost of $100million, while the Small and Medium Enterprises (SMEs) and invisibles sectors were offered $55million each.

The apex bank said the interventions were in continuation of its commitment to maintaining stability in the market as well as enhance production and trade.

It also commended the cooperation by players in the inter-bank market, saying it had enjoyed a great deal of stability and seamless access of customers to foreign exchange following regular interventions by the CBN.

The financial regulator was optimistic that the first Monetary Policy meeting (MPC) billed for April would add a fillip to the monetary policy activities of the CBN.

It, therefore, urged Nigerians to remain hopeful about the economic outlook for 2018, stressing that the CBN remained people-centred.

The CBN had on Friday last week sustained its intervention in the forex market by injecting the sum of $339.89 million in the retail Secondary Market Intervention Sales (SMIS).

Nigeria’s Foreign Exchange Reserves Rise

Nigeria's Foreign Exchange Reserves Rise


Nigeria’s foreign exchange reserves have climbed beyond $40billion as of last week, according to the Head of Communications, Central Bank of Nigeria (CBN), Mr Isaac Okoroafor.

Data from the apex bank shows the reserves rose to $42.8 billion, growing by $3.5 billion since the beginning of the year.

The reserves opened the New Year at $39.3 billion.

The steady increases have been driven largely by rising crude oil prices, which touched $71 per barrel in January, before retreating to $62 dollars per barrel in the previous week.

An upsurge in dollar inflows through the investors and exporters window of the foreign exchange market has also helped to cushion the FOREX reserves.

In the area of crude oil price, Brent is at its highest level in close to two weeks following a recovery in Asian shares and worries over tensions in the Middle East.

Brent crude was up 0.7 per cent, at 65 dollars, 30 cents per barrel after rising more than 3 per cent last week.

The United States crude also rose by 1.2 per cent, at 62 dollars 42 cents a barrel.

But in spite of the upside, trading is expected to be slower than usual this week, due to market holidays in the U.S. as well as China and India.

Nigeria’s Foreign Exchange Reserves Increase By $1.12bn In One Month

CBN Plans $100m Sale At Special AuctionNigeria’s Forex reserves have appreciated by 1.12 billion dollars in the last one month, boosted by a rally in oil prices and a relatively stable foreign exchange market.

Data from the central bank shows an increase in the reserves from 32.74 billion dollars in October to 33.86 billion dollars as at November the 1st.

In the last 10 months, the reserves have grown by 31.03 percent, which is 8.01 billion dollars from 25.84 billion dollars at the end of 2016.

Analysts believe the forex reserves will continue to remain at comfortable levels with the improved outlook of the country, and an increased inflow of foreign exchange through oil sales and foreign borrowings by the government.

Ecobank CEO Defends CBN’s Foreign Exchange Policies

The Group Chief Executive Officer of Pan-African lender, Ecobank Group, Mr. Ade Ayeyemi, on Thursday defended the foreign exchange policies and actions of the Central Bank of Nigeria.

According to him, the regulator is on course in addressing the challenges of the market.

In an interview on Bloomberg Television from the World Economic Forum for Africa holding in Durban, South Africa Mr Ayeyemi said the CBN was in the best position to decide foreign exchange management issues based on facts available to the financial regulator.

On the ongoing restructuring in Ecobank, the CEO said the lender had stopped its Pan-African expansion programme and was now consolidating.

Mr. Ayeyemi said part of the consolidation exercise may include trimming physical branch network in Nigeria and, reposition the bank’s processes more in line with the digital technology now in vogue around the world.

CBN Boosts FX Supply With Additional $180 Million

CBN Boosts FX Supply With Additional $180 MillionThe Central Bank of Nigeria (CBN) on Monday offered a total of $180 million to meet bids for wholesale auction and requests for invisible such as medicals, school fees and personal travel allowances valued at $80 million through the inter-bank window.

The Acting Director of CBN Corporate Communications Department, Isaac Okorafor, who confirmed the figures, said the wholesale requests would be settled on Tuesday, March 21, 2017.

With the development, it is expected that the Naira will further strengthen in the Foreign Exchange (FX) market in the days to come.

Mr Okorafor stated that the financial regulator has so far met all the legitimate demands from genuine customers.

He reiterated that the apex bank would ensure sustainable FX liquidity and transparency in the process to enable as many customers as possible get access to the foreign exchange they genuinely demanded.

The CBN official further advised eligible individuals with genuine foreign currency needs to freely approach their banks and authorised dealers with their request.

He stressed that the CBN had made adequate provisions of foreign currency for all such legitimate purposes, asking the customers to approach the financial regulator with their complaints should they be unfairly denied access.

Nigeria’s Foreign Reserves Hit $30b Again

Nigeria's Foreign Reserves Hit $30b AgainFor the second time since President Muhammadu Buhari assumed office in May 2015, Nigeria’s foreign reserves have hit the 30 billion dollar mark.

The latest figures from the nation’s apex bank, (CBN), show that the reserves which have experienced a steady day-on-day increase of between 2.30 and 2.75 % since January 5, 2017, closed the trading week above 30 billion dollars.

The last time the reserves crossed the 30 billion dollar mark was in July 2015, and went as high as 31.63 billion dollar in August of the same year before it began to decline.

The reserves were affected by low crude oil prices across the world, which reduced the availability of foreign exchange and in turn, put pressure on the Naira.

The rising reserves may be attributed to oil prices, which have soared as a result of agreed production cuts between OPEC and non-OPEC members.

Since February 2017, the Central Bank of Nigeria (CBN), has been providing foreign exchange to banks to meet the tuition, travel and medical needs of customers, thereby reducing the pressure on the Naira.

Naira To Trade Within Narrow Range In Coming Days

Naira To Trade Within Narrow Range In Coming DaysThe Naira is expected to trade within a narrow range in the coming days, with the Central Bank of Nigeria (CBN) injecting more dollars into the market.

The local currency was quoted at 463 Naira per dollar on the black market on Friday, weaker than the 450 Naira to a dollar level last week.

Commercial lenders quoted the Nigerian currency at 305 Naira 80 Kobo to a dollar on the inter-bank market, compared with 305 Naira 50 Kobo it closed at last week.

News also came in during the week that the Federal Government in its Economic Growth Recovery Plan, said the current ban on 41 items from accessing Foreign Exchange (FX) in the inter-bank FX market would be reviewed.

The influx of dollar into the market is part of plans by the apex bank to narrow the margin between official and parallel market exchange rates.

This followed the latest data by the CBN which revealed that Nigeria’s Foreign Exchange Reserves which have experienced a steady increase since January 5, 2017 rose above $30 billion this week.

Experts attributed the increase to the recovery in crude oil prices which have soared, following the output cut deal agreed between OPEC and Non-OPEC members on January 1.

The last time the reserves crossed the $30 billion mark was in July 2015, where it went as high as $31.63 billion in August 2015 before it began to decline.

CBN To Task Banks On 24hr FX Sale

CBN To Task Banks On 24hr FX SaleNigeria’s Central Bank says it will direct commercial banks to sell business and personal travel allowances to retail customers within 24 hours of filing a demand request.

This follows complaints that some banks are delaying the sale of fx to retail customers in contrast to the new forex policy issued by the CBN recently.

The apex bank also says that banks would be compelled to open forex transaction compartments in all branches across the country, to enhance the ease of forex transactions to Nigerians.

A source also told Channels Television that all commercial banks will be asked to have electronic fx rate display system in all their branches.

This is expected to promote transparency and disclosure of rate to retail customers of the banks.

Naira Drops As CBN Announces New FX Policy

Naira, Central Bank of Nigeria, CBN, Nigerians,The Central Bank of Nigeria (CBN) on Monday announced its first policy actions in the Foreign Exchange (FX) market.

The announcement by the financial regulator comes less than a week after the National Economic Council asked the CBN to revisit its policies on the FX market, as the value of the local currency unit (Naira) dips almost on a daily basis.

The apex bank also announced direct additional funding of foreign exchange to banks for onward sales to Nigerians for their personal, basic travel, medical needs and school fees.

The bank stated in statement that the new directive takes immediate effect.

The apex bank, however, stipulated that such retail transactions should be settled as a rate not exceeding 20% above the interbank market rate, which finished on Monday at 305 Naira, 25 Kobo to the U.S. dollar.

In addition to this, the central bank also announced a significant reduction in the tenor of its forward FX sales from the current maximum cycle of 180 days, to not more than 60 days from the date of transaction.

This move, the financial regulator said would further increase the availability of foreign exchange to all end users.

As the bank seeks to increase efficiency of the FX market that has come under intense local and international criticisms, the apex bank said immediate steps were being taken to clear all unfilled orders at the interbank market, remove imposition of allocation/utilisation rules on commercial banks, as well as implement an effective programme to support the interbank market.

The operator of the interbank FX market, the FMDQ OTC Securities Exchange, was therefore advised to activate its FX order-book systems as soon as possible.

The agency was also asked to fast-track the on-boarding of foreign exchange clients on the FX relationship systems, in order to ensure total transparency of the foreign exchange market.

Oil Marketers Call For Full Deregulation Of Downstream Sector

Downstream Sector, MOMAN, Oil MarketersThe Major Oil Marketers Association of Nigeria (MOMAN) has called on the Federal Government to fully deregulate the downstream sector.

The Executive Secretary of the association, Mr Obafemi Olawore, who made the appeal, stated that total deregulation was a way of ending the persistent fuel scarcity in Nigeria.

Mr Olawore noted that the government’s inability to pay the over one billion dollars owed its members nationwide was impacting negatively on MOMAN’s operations.

He called on the government to pay the debt and also provide adequate foreign exchange to enable members of the association commence importation of products.