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.

Nigeria’s Foreign Reserves Hit 19-Month High

 Nigeria’s foreign exchange reserves rose to $30.8bn in April, the highest level since September 2015.

The increase could be attributed to a recent rise in global crude oil price, and proceeds of the country’s Eurobond, issued in march.

Data from the Central Bank shows that Nigeria’s forex reserves, stood at $30.31bn, a month ago.

The country’s reserves have risen 18.1 per cent since the start of the year, but are still far off the peak of $64bn, achieved in august, 2008.

The reserves had in March hit the $30bn mark for the second time since President Muhammadu Buhari assumed office in May.

The reserves have experienced a steady day-on-day increase of between 2.30 and 2.75 per cent since January 5, 2017.

The last time the reserves crossed the $30bn mark was in July 2015 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.

A production cut agreement between OPEC and non-OPEC members have since led to an upsurge in crude oil prices, which in turn have benefitted the reserves.

Since February 2017, the Central Bank of Nigeria, 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 Expected To Rise Next Week

Naira, dollar, Market FX marketThe Naira is expected to appreciate on the street next week, following the Central Bank of Nigeria’s plan to increase dollar sale to retail currency bureaus.

The Central Bank is planning to raise dollar sales to Bureau De Change to $40,000 from the present $20,000, which will improve liquidity and help support the local currency.

The local currency was quoted at 410 to the dollar on the street, compared with 398 to the dollar, last week.

At the inter-bank market the local unit closed at 306.10 to the dollar on Wednesday compared with 306.20 last week.

CBN To Sustain Intervention In FX Market

CBN Mandates Banks On PTAs, School FeesThe 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.

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 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.

Reps Oppose Ban On Vehicle Importation Through Land Borders

Reps Kick Against Ban On Vehicle Importation Through Land BordersThe 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.

NSE Lists First Waste Management Company on ASeM

NSE CEO, Oscar Onyema says the company's admission into market puts it on a pedestal for growth and sustainability
NSE CEO, Oscar Onyema says the company’s admission into market puts it on a pedestal for growth and sustainability

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.

MPC Meeting: Currency Traders Optimistic About Naira Value

Naira, dollar, Market FX marketCurrency traders expect a mixed performance for the Naira ahead of next week’s meeting of the Central Bank of Nigeria’s Monetary Policy Committee.

The Naira appreciated to 306 naira 33 kobo against the Dollar on Wednesday and 416 naira 19 kobo to the Pound but weakened to 365 naira 38 kobo against the Euro on the interbank platform.

At the parallel market the local unit also firmed to 423 to the Dollar and 550 to the British Pound while it traded flat at 470 to the Euro.

Financial Markets Close Due To Eid-el-Kabir Celebrations

Naira, dollar, Market FX market, Financial marketsFinancial markets across the country closed on Monday and Tuesday this week to commemorate the Eid-el-Kabir holiday.

Meanwhile, at the equities market last week, the Nigerian equities market finished bearish, with the all share index tumbling by 0.65 percent, to 27,577.52.

Total volume traded increased by 6.08 percent to 1.18 billion shares, valued at 10.3 billion Naira, and traded in 16,522 deals.

At the average, Interbank rate climbed by 237 basis points this week, to close at 20.29%.

The CBN conducted multiple OMO auctions totaling, 246 billion Naira, which nearly matched inflows of 293 billion Naira, from maturing OMO bills.

Analysts expect rates to continue to tighten, with no major inflows set to come in, this week.

Nigeria To Raise N952 Billion In Treasury Bills

Nigeria-NairaNigeria will raise about 952.04 billion naira ($3.02 billion) with new issues of Treasury bills from September 15 to December 1, 2016.

This is according to the Central Bank of Nigeria (CBN) said on Wednesday in its latest issuance calendar.

The CBN said it would sell 264.47 billion naira worth of three-month bills, 204.88 billion of six-month bills and 482.69 billion of one-year bills.

Nigeria is expected to borrow around 900 billion naira from the local market to bridge its budget deficit, which is estimated at 2.2 trillion naira in this year’s budget.

Naira Depreciates Against Three Currencies At Interbank Market

Naira, dollar, Market FX marketThe 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.