CBN Forex Intervention Hits $42.3bn

CBN Reviews Capitalisation Of Tier 2 Microfinance Banks

 

The Central Bank of Nigeria has pumped over $42.3 billion into the foreign exchange market in the past year to ensure liquidity in that segment of the economy.

A breakdown of the numbers shows that about 7.89 billion dollars went into the market in the second quarter of 2018, while N11.88 billion was injected in the third quarter of 2018.

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N10.72 billion was pumped into the market in the fourth quarter of 2019 and N11.81 billion went in as at the end of March 2019.

The Director of Corporate Communications Department, at the CBN, Mr Isaac Okorafor, attributes the relative stability in the forex market largely to the bank’s continued intervention.

Nigerian Ambassador To Ethiopia Warns Travellers Against Carrying Over $3000

 

The Nigerian Ambassador to Ethiopia, Bankole Adeoye, says Nigerians staying in Ethiopia over 14 hours, or transiting to other destinations, need to be wary of carrying monies in excess of $3000, or its equivalent in other currencies.

Adeoye said this is as a result of a longstanding economic policy by the Ethiopian government.

According to him, the policy is being re-enforced, causing Nigerian travellers to lose hundreds of thousands in forex while passing through the country.

He further stated that so far, over 25 Nigerians have had monies and valuables confiscated because of the policy.

Adeoye, who was speaking on the sidelines of the African Union Summit in Addis Ababa, however, said the Nigerian government is working to help recover confiscated monies but wants Nigerians to be aware of the risk of carrying forex in excess.

He urged Nigerians carrying such monies, to declare them, at the point of entry.

“The job of the embassy, the task before us is to make sure that awareness is created, is greater, is intense and most Nigerians are aware when they come that they need to be cleared on arrival.

“Due to this new push, we are making progress and we have consulted with the Government of Ethiopia, the Ministry of Foreign Affairs, the tax authorities and indeed the Ethiopian Alliance itself.

“So, on Ethiopian Airlines flights, there are now greater awareness and announcement being created. For those who are staying overnight on transits in hotels, we are also making sure that they are fully aware that this is a peculiar law because the standard international threshold is $10,000.

“But we have assured Nigerians that we will continue to protect their interests knowing fully well that ignorance of the law is not an excuse. We have over 25 Nigerians that have been involved.

“It is not only cash in foreign currency. It is also valuables to the tune of thousands and hundreds of thousands of Dollars in all currencies that we know.

“But we are assured by the commitment of the Government of Ethiopia that they will refund where the cases have been thoroughly examined by the tax and revenue authorities.

“In two or three cases, there have been refunds because the circumstances were different, and we hope that that step will continue.

“Since we came, we have raised it with the highest level of authorities and indeed the former Prime Minister did give a go-ahead the refund of some of the seized foreign currencies.”

CBN Injects $210m Into Forex Market

CBN Boosts Foreign Exchange With $210m

 

The Central Bank of Nigeria (CBN) has injected another round of 210 million dollars into the inter-bank foreign exchange market.

A breakdown of the injection shows an allotment of 100 million dollars to authorised dealers in the wholesale segment while the small and medium scale enterprises received 55 million dollars.

The invisible segment which includes tuition fees, medical payments and basic travel allowance was apportioned 55 million dollars

The move is aimed at maintaining the forex market’s confidence as the CBN has assured of capacity to sustain interventions.

CBN Injects $418m Into Forex Market

CBN Boosts FX Supply With Additional $180 MillionIn its continued effort to further lift the Naira, the Central Bank on Tuesday injected another 418 million dollars into various segments of the forex market after it injected 413.5 million dollars on Monday.

Figures obtained from the CBN indicate that the retail segment of the market received the highest intervention of 226 million dollars, followed by the wholesale window which received 100 million dollars.

The Small and Medium Enterprises window got 50 million dollars, while business/personal travel allowances, school tuition, medicals was allocated 42 million dollars.

According to the Apex bank, the volume of currency trading in the investors’ & exporters’ FX window now stands at 2.2 billion dollars.

CBN Introduces New Rules For Interbank Deals

CBN Governor, Mr Godwin Emefiele

The Central Bank of Nigeria has directed all foreign exchange dealers to terminate their excess foreign currency to positions with fellow dealers at no more than one naira spread.

The FX funds purchased at the interbank market, however, may not be held in position overnight.

The Central Bank also warned all dealers not to exceed the foreign currency trading position limit, unless approval is granted by the regulator.

The directive is part of a set of rules introduced through a circular on Monday.

The circular read in part, “All authorised dealers shall be subject to a maximum spread of N1.

“Funds purchased by an authorised dealer from another dealer on the interbank market shall not be held in position overnight by the buying authorised dealer or sold to another authorised dealer.”

“Such interbank purchases shall only be sold by the buying authorised dealer to its customers for permitted/eligible transactions as outlined in the above-referenced circular.”

CBN Floods Forex Market With $457.3m

CBN Mandates Banks On PTAs, School FeesThe Central Bank of Nigeria (CBN), on Monday injected a total of 457.3 million dollars into the various segments of the foreign exchange market; the highest since mid-February.

This follows the lull that was experienced in the system last week.

A breakdown of the intervention showed that a total of 267.3 million dollars was disbursed to the spot and forwards segments, while 100 million dollars was sold at the wholesale segment.

The SME as well as the invisible sections which comprise basic travel allowances, tuition and medical, received 50 million dollars and 40 million dollars, respectively.

Meanwhile, the volume of transactions on the investors and exporters foreign exchange window in the past three weeks stands at 600 million dollars.

CBN Bars 18 Banks SME FX Funds

CBN Mandates Banks On PTAs, School FeesThe Central Bank of Nigeria (CBN) has sanctioned 18 commercial banks, for their failure to “utilise any portion of funds allocated by the CBN, under the Small and Medium Enterprises window, since its inception four weeks ago”.

The ban which took effect from May 2, 2017, sees 18 banking firms barred from participating in the weekly wholesale spot and forward forex intervention exercises.

The CBN says it would not be lifted until all the affected banks have shown evidence of ”significant utilisation of the funds”.

Only eight commercial banks – Access, Zenith, Jaiz, Fidelity, Diamond, Heritage, Unity and Sterling banks have reportedly sold portions of the 100 million dollar per week payment by the CBN, for onward sale to SMES.

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 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.

CBN To Disburse More Funds To Banks

 CBN To Disburse More Funds To BanksThe Central Bank of Nigeria says it would provide direct immediate additional funding to banks in order to meet the personal, business, medical as well educational demands of Nigerians.

According to a statement released on Monday by the regulator, it expects such transactions to be settled at a rate not exceeding 20 per cent above the interbank market rate.

The CBN says the exercise is part of efforts to ease the difficulties faced by Nigerians while trying to access Forex for transactions.

The Central Bank, however warns that it would sanction any bank or staff involved in unscrupulous and fraudulent transactions on the FX market.

FX Intervention: CBN Disbursed $355.74m For Raw Materials In October

FX Intervention: CBN Disbursed $355.74m For Raw Materials In OctoberThe Central Bank of Nigeria (CBN) disbursed a total of 355.74 million U.S. Dollars for raw materials imports in the month of October.

A statement issued late Thursday by the financial regulator says the amount was about 40.99% of the total 867.83 million dollars CBN special interbank foreign exchange package.

Out of the 356 million dollars CBN raw materials FX intervention last month, the highest amount goes to school fees, medicals and other invisibles.

At the second place was petroleum industries with 150.81 million dollars while the manufacturing sector received 91.27 million dollars.

On the list also are agriculture, aviation and finished goods.

The Central Bank says the disbursements were based on a total of 7,792 requests that were received for vital raw materials and spare parts sourcing.

CBN Denies Review Of Foreign Exchange Law

forex, CBN, bureau de change, exchange rate, Central bankThe Central Bank of Nigeria (CBN) has denied plans to amend the Foreign Exchange Act.

In a statement, the regulator says it remains committed to safeguarding the international value of the country’s legal tender.

It added that the plans of a 20% fine for any holder and confiscation of funds in domiciliary accounts of individuals is not true.

The news broke over the weekend that the federal government and the CBN were planning to stem volatility in the foreign exchange market with such plans.

The Nigerian Senate on Monday expressed surprise at the recommendation which was made by the Nigerian Law Reform Commission.

The commission recommended a review of the Nigerian Foreign Exchange Act to accommodate punishment for persons holding on to foreign currency.

The commission wants the law to empower the the Central Bank of Nigeria to jail people for up to two years or fine them for 20% of the amount of the foreign currency held in their possession for more than 30 days.

But the Senate’s through its spokesperson, Senator Aliyu Abdullahi, stated that the measure was disruptive and counter-productive and would undermine many of the reform efforts already underway in the legislature and by government ministries intended to boost investors’ confidence.

The proposed changes are said to be intended to help control capital flows and prevent foreign exchange from being taken out of Nigeria.