Newly Confirmed CBN DGs, MPC Members Assume Duty

 

After confirmation by the Senate House of Assembly, Aisha Ahmad and Edward Adamu have assumed duty as substantive deputy governors of the Central Bank of Nigeria (CBN) alongside three members of the Monetary Policy Committee (MPC).

Ahmad and Adamu assumed duty on Wednesday, March 28 after being screened and confirmed by the Senate Committee on Banking and Finance, last week..

Also, the trio of Adeola Adenikinju, Robert Asogwa and Aliyu Sanusi on Wednesday formally commenced their tenure as members of the Monetary Policy Committee (MPC) of the Bank.

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CBN governor, Godwin Emefiele congratulated the new Deputy Governors and members of the MPC on their respective appointments by President Muhammadu Buhari and subsequent confirmation by the Senate.

Emefiele, flanked by Adebayo Adelabu and Joseph Okwu Nnanna, the Deputy Governors in charge of Operations and Financial System Stability (FSS), respectively, expressed gladness that the bank now has a full complement of deputy governors to enable it to operate optimally as well as the required quorum to enable the MPC to hold its statutory meetings for formulating monetary and credit policy.

He, therefore, charged the deputy governors and MPC members to bring their experience to bear in the discharge of their new responsibilities, stressing that much was expected of them. He urged them to

Ahmad, Adamu and the three new MPC members subsequently subscribed to their oaths of office, administered by the acting director, corporate secretariat at the CBN, Alice Karau.

Thereafter, the Director, Monetary Policy Department (MPD),  Moses Tule, read out the Charter of the MPC to new members before they retired into their maiden MPC retreat preparatory to the first MPC meeting for 2018 scheduled to hold on Tuesday, April 3 and Wednesday, April 4, 2018.

The Senate on Thursday, March 22 confirmed the appointment of Ahmad and Adamu as substantive Deputy Governors of the Central Bank of Nigeria (CBN) along with three members of the Monetary Policy Committee (MPC).

CBN Assures Nigerians Of Policies To Strengthen Naira

Naira, Central Bank of Nigeria, CBN, Nigerians, Godwin EmefieleThe Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, says the apex bank will continue to come up with policies to strengthen the naira.

The CBN Governor added that he expects the naira to stabilise while inflationary pressure is expected to reduce.

He made the remarks on Tuesday at the first Monetary Policy Committee meeting for the year in Abuja, the nation’s capital.

At the meeting to evaluate the economy’s performance in the last quarter of 2016, Mr Emefiele gave an overview of the international market and how it has affected the domestic economy.

He noted that the apex bank would come up with policies to increase Nigeria’s foreign reserve which currently stands at $28.9 billion.

The apex bank governor also assured Nigerians of a more resilient economy in 2017 which he said would be driven by agriculture and diversification of the economy.

He added that the bank would make the foreign exchange available for manufacturers and other businesses.

MPC Leaves Monetary Policy Rate At 14%

Godwin-Emefiele-Governor-of-Central-Bank-NigeriaThe Monetary Policy Committee in Nigeria has retained a 14% Monetary Policy Rate at the end of its first meeting for 2017.

The rate was announced by the Governor of the Central Bank, Mr Godwin Emefiele, at the end of the meeting held on Tuesday in the nation’s capital, Abuja.

He said the decision was reached after the committee members considered the economic outlook of Africa’s largest economy.

“The Committee in consideration of the headwinds in the domestic economies and uncertainties in the global environment, decided by a unanimous vote to retain the MPR a 14% alongside all other policy parameters,” he stated.

Briefing reporters at the end of the meeting, Mr Emefiele said: “With output growth improving sluggishly, the outlook for 2017 remains unchanged, owing to persisting uncertainties on commodity prices and volatility in financial market as well as slowing demand in the advanced economies and emerging market.

“The MPC welcomed the modest increase in oil prices following the last OPEC decision to cut output and noted the increase in the policy rate of the United States FED in December 2016 and the potential implications of that decision on international interest rates and capital flows.

“While noting the materiality of the cut in oil output, the committee cautioned that the effect could rapidly wane giving a likelihood of a supply glut from non-OPEC members, low level of global economic activity and weak growth”.

He also stated that the committee observed that the medium term outlook continued to be muffled by stagnation and uncertainty in the prospects of global trade, subdued investments and heightened policy uncertainty especially in some major economies.

Mr Emefiele, however, observed that the IMF had estimated that the constraints would decline, paving way for mild improvements in economic growth from 3.1% in 2016 to 3.4% in 2017.

On the Capital Market the Central Bank Governor said: “The Committee welcomes the improvement in the equities segment of the Capital Market, as the All Share Index rose by 2.84% from 25,499 on November 21, 2016 to 26,223.54 on January 20, 2016”.

The committee said available data on key economic variables showed a more stable economy in 2017, saying growth is expected to turn positive, as the fiscal state becomes more accommodative.

“The agricultural sector is expected to play a more significant role in driving growth, giving the expansion of Anchor Grower Programme and other developmental initiatives of the Federal Government,” he further said, reading from resolutions reached at the meeting.

The liquidity ratio and the Cash Reserve Ratio (CRR) were also unchanged.

While the liquidity ratio remains 30% the CRR is 22.50%.

It also retained the asymmetric corridor at +200 and -500 basis points around the MPR.

Ten out of 11 members of the committee were present at the meeting.

MPC Urges Federal Government To Review Domestic Debt

Godwin-Emefiele-Governor-of-Central-Bank-NigeriaThe federal government needs to evaluate its domestic indebtedness to domestic economic agents and develop settlement plans.

This is part of considerations of members of the Monetary Policy Committee (MPC), at its final meeting for 2016.

In a communiqué issued at the end of its two-day meeting in Abuja, the committee explained that the country’s debt profile has resulted among other things, to a slow down in economic activities.

Addressing the meeting, Central Bank Governor, Godwin Emefiele, said: “members stressed the need for a robust and more keenly coordinated micro-economic policy framework that would restart output growth and stimulate aggregate demand.

“Consequently, the MPC welcomes efforts at resuscitating planning, noting the progress made in developing the medium term economic recovery plan.

“The MPC urges the government to assess the extent of its indebtedness to domestic economic agents, and develop a framework for securitizing the debts, in order to settle its outstanding domestic contraction obligations, which cuts across all sectors of the economy,” Mr Emefiele stated.

The meeting which is aimed at facilitating the attainment of price stability and supporting the economic policy of the Federal Government, came to an end on November 22, 2016.

Nigerian Lawmakers Seek Sack Of CBN Governor Emefiele

House, CSOs, BillsSome lawmakers in the House of Representatives say the Governor of the Central Bank of Nigeria, Godwin Emefiele, should be sacked over his management of the country’s foreign exchange.

This is one position put forward as lawmakers considered the lingering scarcity of foreign exchange.

Addressing the House, a lawmaker said that the scarcity had continued to weaken the Naira against the dollar which now exchanges about 400  Naira to a dollar.

“The continuous weakening of the Naira against the dollar and other foreign currencies has affect the cost of goods and services production and has consequently made life more difficult for most Nigerians,” he said.

After deliberations on the issue, the House, however, resolved to have an ad-hoc committee investigate the Central Bank of Nigeria’s forex policies and recommend measures that would stabilise the Nigerian forex market.

The apex bank had on June 20 introduced interbank trading of foreign exchange to make the exchange market more flexible.

Despite the introduction of the policy, there is relative scarcity of forex, prompting the lawmakers to request that the Governor of the bank should be sacked.

The scarcity is propelled by demand for dollar needed by most importers, as the nation largely depends on imported goods.

It is a trend that the Nigerian government said some of its economic policies would address, reducing the preference of foreign products while patronage for made in Nigeria goods is promoted.

Highlights Of The Policy 

The CBN had released the highlights of the flexible foreign exchange market policy weeks after the Monetary Policy Committee announced its introduction.

After its meeting of May 24, the CBN said the policy would allow the bank retain a small portion of foreign exchange for critical transactions.

Key notes released stated that the market would operate as a single market structure via the interbank market and authorised dealers and that it would be purely an exchange rate market managed via Thompson Reuters platform.

Part of the key notes is that the CBN would participate via periodic intervention and would introduce primary dealers that deal with the CBN on a two way quote basis.

The primary dealers are also expected to deal with other players in the interbank market.

Other aspects of the key notes are that there shall be no pre-determined spreads on forex transactions and all forex purchases shall be transferable while 41 items shall remain inadmissible in the forex market for forex transactions.

The CBN will also offer long term forex futures and sales of forex forwards for end users must be trade-backed.

The non-deliverable OTC forex settled trades will help moderate volatility. The OTC settled forex feature shall be on non-standardised amounts, the apex bank said.

Another aspect of the key notes states that proceeds of forex shall be purchased by authorised dealers at the daily interbank rates.

The new police which the CBN said was a market-driven trading system, is expected to end the central bank’s 16 month fixed exchange rate policy.

After the highlights were released, Nigeria’s capital market made remarkable gains, with most stocks appreciating in price.

No Need To Panic

One of the leading global rating agencies, Fitch Ratings had welcomed the decision of the apex bank, saying that the shift to a more flexible foreign-exchange regime could aid Nigeria to adjust to lower oil prices and support growth.

It however, warned that the implementation of the new forex policy may present challenges if not properly managed.

Fitch explained that establishing the new framework’s credibility would be key to its effectiveness in attracting portfolio flows and Foreign Direct Investments (FDIs) to make up for lower oil export receipts.

Meanwhile, the CBN Governor, Godwin Emefiele, has reiterated that there was no need for businesses and investors to panic over the new forex policy, saying it will help address the imbalance in the economy.

MPC Leaves All Rates Unchanged

Godwin-Emefiele-Governor-of-Central-Bank-NigeriaThe Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained all key indicators.

The CBN Governor, Mr Godwin Emefiele, on Tuesday read the communique announcing decisions reached at its September meeting in the nation’s capital, Abuja.

The committee agreed to keep the Monetary Policy Rate at 14 per cent, the Cash Reserve Ratio at 22.50 per cent and the Liquidity Ratio at 30 per cent.

Mr Emefiele explained that while challenges in the economy remain, monetary policy alone cannot boost growth. “Cutting interest rates is not advisable and the current stance will help to limit inflation,” he said.

“The committee assessed the relevant risks and concluded that the economy continued to face elevated risks on both price and output fronts.

“However, given its primary mandate and considering its limitations of its instruments with respect to output, the committee elected to retain the restrictive stance of policy invoked at its last meeting where it raised the Monetary Policy Rate from 12 to 14 per cent.

MPC-LEAVES-RATES-UNCHANGED

“Conscious of the need to allow this and other measures like the foreign exchange reforms to work truthfully, it decided to retain all monetary policy instrument at their current levels,” the apex bank boss stated.

He said that all 10 Monetary Policy Committee members voted to retain the MPR at 14 per cent, retain the CRR at 22.5 per cent, retain the Liquidity Ratio at 30 per cent and retain the asymmetric window at +200 and -500 basis points around the MPR.

The Minister of Finance had expected that the committee would lower key interest rates.

Kemi adeosun, recession, Finance Minister, CBN

Speaking on Channels Television earlier in the day, Mrs Kemi Adeosun said that this would help stimulate the economy, especially as the government plans to boost the economy without increasing debt servicing costs.

At the last committee meeting in July, the benchmark Monetary Policy Rate was raised from 12 per cent, to 14 per cent, while the Cash Reserve Ratio and Liquidity Ratio were both retained, at 22.50 per cent and 30 per cent each.

Nigeria is currently in a recession after official data from the National Bureau of Statistic showed that its Gross Domestic Product (GDP) contracted by 2.06 percent in the second quarter, sending Africa’s biggest economy into a recession after a decline in the first quarter.

MPC Meeting Begins In Abuja

MPC Meeting, MPC, CBN, Anchor Borrowers Scheme, 683 FarmersThe Central Bank of Nigeria’s Monetary Policy Committee 2-day rate setting meeting begins on Monday in the nation’s capital city, Abuja.

It is the most anticipated meeting as it comes at a time the country is deep in recession following disappointing data from the National Bureau of Statistics.

The committee is expected to focus on the state of the Nigerian economy, and decide on key monetary policy parameters.

When the committee held its last meeting in July, headline inflation was at 16.5 percent but that has since increased to 17.6 percent in August.

In the light of severe and growing macroeconomic headwinds, the committee would once again be required to make tough decisions amidst limited policy options.

The CBN Governor, Mr Godwin Emefiele is expected to announce the outcome of the meeting on Tuesday, September 20.

Central Bank Of Nigeria Bars Nine Banks From Forex Transactions

Central BankNigeria’s Central Bank has barred nine commercial banks from all foreign exchange transactions and operations.

The banks were barred for hiding some $2.12 billion belonging to the nation’s oil corporation, the Nigerian National Petroleum Corporation (NNPC) and failed to remit the funds into the Treasury Single Account.

A top Central Bank source confirmed to Channels Television on Tuesday, that President Muhammadu Buhari had been briefed on the matter and the sanctions to be imposed on the defaulting banks.

The nine banks comprise of three tier-one lenders and another six tier-two deposit money banks.

All the banks remain barred from foreign exchange operations until they fully remit the NNPC funds into government coffers via the Treasury Single Account, the apex bank said.

The Treasury Single Account of the government was established in August 2015, with the government saying it would help check leakages in the system.

The apex bank’s decision to bar the banks comes two months after it released the highlights of the much awaited flexible foreign exchange market policy.

The highlights, which are key notes and agreements reached by the Central Bank of Nigeria (CBN), were released on Wednesday, weeks after the Monetary Policy Committee announced the introduction of the policy.

After its meeting of May 24, the CBN said the policy would allow the bank retain a small portion of foreign exchange for critical transactions.

CBN Resolves To Clear All Backlog of Forex Demand In The Country

forex, CBNThe Central Bank of Nigeria has resolved to clear all the backlog of forex demand of about 5 billion dollars in the country through spot and forward settlements.

According to a statement released by the Acting Director, Corporate Communications of the Central Bank, Mr Issac Okoroafor, the move is to engender confidence, ensure credible price formation and sustain the integrity of the Nigerian inter-bank FX market.

This comes as the new flexible forex trading begins on Monday.

The Central Bank of Nigeria (CBN) had released the highlights of the much awaited flexible foreign exchange market policy on Wednesday, June 15, weeks after the Monetary Policy Committee announced the introduction of the policy.

After its meeting of May 24, the CBN said the policy would allow the bank retain a small portion of foreign exchange for critical transactions.

Key notes released stated that the market would operate as a single market structure via the interbank market and authorised dealers and that it would be purely an exchange rate market managed via Thompson Reuters platform.

Part of the key notes is that the CBN would participate via periodic intervention and would introduce primary dealers that deal with the CBN on a two way quote basis.

The primary dealers are also expected to deal with other players in the interbank market.

Interbank Trading Of Foreign Exchange Expected To Begin In Nigeria

forexInterbank trading of foreign exchange is expected to begin on Monday in Nigeria, as contained in the highlights of the new flexible foreign exchange market policy released by the Central Bank.

Tenors and rates for Over The Counter (OTC) settled forex feature is also expected to be announced later in the day by the apex bank.

Highlights Of The Policy 

The Central Bank of Nigeria (CBN) released the highlights of the much awaited flexible foreign exchange market policy on Wednesday, weeks after the Monetary Policy Committee announced the introduction of the policy.

After its meeting of May 24, the CBN said the policy would allow the bank retain a small portion of foreign exchange for critical transactions.

Key notes released stated that the market would operate as a single market structure via the interbank market and authorised dealers and that it would be purely an exchange rate market managed via Thompson Reuters platform.

Part of the key notes is that the CBN would participate via periodic intervention and would introduce primary dealers that deal with the CBN on a two way quote basis.

The primary dealers are also expected to deal with other players in the interbank market.

Other aspects of the key notes are that there shall be no pre-determined spreads on forex transactions and all forex purchases shall be transferable while 41 items shall remain inadmissible in the forex market for forex transactions.

The CBN will also offer long term forex futures and sales of forex forwards for end users must be trade-backed.

The non-deliverable OTC forex settled trades will help moderate volatility. The OTC settled forex feature shall be on non-standardised amounts, the apex bank said.

Another aspect of the key notes states that proceeds of forex shall be purchased by authorised dealers at the daily interbank rates.

The new police which the CBN said was a market-driven trading system, is expected to end the central bank’s 16 month fixed exchange rate policy.

After the highlights were released, Nigeria’s capital market made remarkable gains, with most stocks appreciating in price.

No Need To Panic

One of the leading global rating agencies, Fitch Ratings had welcomed the decision of the apex bank, saying that the shift to a more flexible foreign-exchange regime could aid Nigeria to adjust to lower oil prices and support growth.

It however, warned that the implementation of the new forex policy may present challenges if not properly managed.

Fitch explained that establishing the new framework’s credibility would be key to its effectiveness in attracting portfolio flows and Foreign Direct Investments (FDIs) to make up for lower oil export receipts.

Meanwhile, the CBN Governor, Godwin Emefiele, has reiterated that there was no need for businesses and investors to panic over the new forex policy, saying it will help address the imbalance in the economy.

Nigeria’s Apex Bank Releases Highlights Of Flexible Exchange Policy

Nigeria flexible exchange police or foreing Exchange PolicyThe Central Bank of Nigeria (CBN) has released the highlights of the much awaited flexible foreign exchange market policy.

The highlights, which are key notes and agreements reached by the CBN, were released on Wednesday, weeks after the Monetary Policy Committee announced the introduction of the policy.

After its meeting of May 24, the CBN said the policy would allow the bank retain a small portion of foreign exchange for critical transactions.

Key notes released stated that the market would operate as a single market structure via the interbank market and authorised dealers and that it would be purely an exchange rate market managed via Thompson Reuters platform.

Part of the key notes is that the CBN would participate via periodic intervention and would introduce primary dealers that deal with the CBN on a two way quote basis.

The primary dealers are also expected to deal with other players in the interbank market.

Other aspects of the key notes are that there shall be no pre-determined spreads on forex transactions and all forex purchases shall be transferable while 41 items shall remain inadmissible in the forex market for forex transactions.

The CBN will also offer long term forex futures and sales of forex forwards for end users must be trade-backed.

The apex bank will also introduce non-deliverable OTC forex settled trades to help moderate volatility. The OTC settled forex feature shall be on non-standardised amounts

Another aspect of the key notes states that proceeds of forex shall be purchased by authorised dealers at the daily interbank rates.

The CBN also released primary dealers operational guidelines, saying that selected dealers would be notified on Friday.

It agreed that interbank trading would begin on Monday, June 20 and tenors and rates for OTC settled forex feature would be announced June 20.

MPC Raises Monetary Policy Rate To 12%

MPCThe Monetary Policy Committee (MPC) of the Central Bank of Nigeria has raised the Monetary Policy Rate (MPR) to 12% from 11%.

This is an outcome of its 2-day meeting which started on Monday in Abuja, the nation’s capital; the second for the year 2016.

At the last meeting in January, the MPC maintained the monetary policy rate, the cash reserve requirement, and the liquidity ratio at 11%, 20% and 30% respectively.

The Governor of the central bank said that the key decisions taking by the regulator were part of measures for achieving fiscal and financial stability.