In 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.
The Central Bank of Nigeria (CBN) says it will sustain its intervention in the Foreign Exchange (FX) market to further achieve stability of the Naira.
In a statement by the CBN spokesman, Isaac Okorafor, the apex bank said its release of $418 million on Friday at the retail-SMIS was to ensure ample supply of foreign exchange liquidity in the market.
The financial regulator explained that the releases was in addition to the sum of $350 million sold as wholesale auction, BTA/PTA, and school fees during the week.
“In the weeks ahead, the CBN will sustain its intervention through the sale of foreign exchange to all segments of the market (i.e. PTA/ BTA, Wholesale SMIS, Retail SMIS and the BDC).
“The Bank will sell short-tenured forwards of 7-30-day maturity to meet the demand of manufacturers and all other foreign exchange users.
“These significant injections of foreign exchange into the market should reassure all foreign exchange users of our determination to continue to meet all legitimate FX demand in the market, while striving to achieve exchange rate stability in the market,” the statement said.
The House of Representatives has asked President Buhari to suspend the ban on importation of new and used cars through land borders.
The ban which was announced on December 5, 2016 by the Nigerian Customs Service (NCS) is due to take off from January 1, 2017.
The lawmakers, however, say the policy is too harsh as it would further worsen the economic situation of many Nigerians who are already groaning under the prevailing recession.
The decision of the lawmakers followed the adoption of a motion by Representative Abubakar Salami who noted that the percentage of Nigerians who can afford cars has reduced drastically following the decline in the value of naira, inflation and unemployment.
He said that the Federal government has not put in place alternative measures to ensure that Nigerians have access to cars, “since it is cheaper to buy cars from neighbouring countries and still generate revenue by ensuring that our borders are secured”.
“Some of those making these policies have failed to patronise the made-in-Nigeria goods, especially Nigerian Assembly vehicles which are in any case not affordable to over 80% of Nigerians who can only afford fairly used imported vehicles.
“The ban will cause more harm than good and it will certainly lead to the increase of smuggling,” he said.
The Nigerian Stock Exchange has listed its first waste management company, The Initiates PLC on the alternative securities market board.
The listing which is also the first for the local bourse this year, adds over 700 million Naira to the market capitalisation of the exchange.
889, 981, 552 ordinary shares of 50 kobo each of the company were listed at N0.85 per share by introduction on the Alternative Securities Exchange Market and Capital Limited was the lead financial adviser and the designated adviser while joint adviser on the transaction was Partnership Securities Limited.
The CEO of the Exchange, Oscar Onyema, said: “The company has successfully passed our stringent listing requirements and I commend their efforts to submit themselves to international best practices in governance.”
With this development, the NSE expects the waste management sector of the economy to start opening up.
The Naira depreciated against three currencies at the interbank market on Wednesday.
The local unit depreciated by 0.23 percent to 314 Naira 92 kobo to the Dollar, 3.13 percent to 422 Naira 64 kobo to the Pound and by 0.33 percent 352 Naira 46 kobo to the Euro.
At the parallel market, the Naira firmed by 0.47 percent to 423 against the Dollar, but fell 0.56 percent to 540 against the British Pound, and traded flat at 465 against the Euro.
Traders are optimistic that the Naira may appreciate this week, following the re-reinstatement of the eight banks previously banned by the Central Bank Nigeria (CBN) from the Forex market, and the licensing of 11 new international money transfer operators, to address the Dollar supply.