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Eagle Global Markets Launches Naira Trading Platform For Global Markets

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Naira

Eagle Global Markets, a derivatives global market company, has introduced an indigenous naira platform tagged, “CloudTrade”, to enable both retail and institutional investors in Nigeria to play the global markets.

EGM’s Chief Executive Officer, Mr Gbite Oduneye,  on Friday told a news conference that all global markets trades through the online trading platform were done in Naira.

Oduneye said the company had succeeded in eradicating the bureaucratic bottleneck in trading the global market.

He said, “It does not put pressure on the foreign exchange because all global markets trades through its platform are done in naira.”

“It gives more value to the naira because more people will have to look for it to trade global markets.”

Oduneye said that the naira platform would eliminate the need for currency conversion in deposits and withdrawals and would also offer competitive spreads.

Oduneye said the company was the first PAN African brand to offer such an opportunity to Nigerian clients who previously had to face the hassles of operating a U.S. dollar-denominated account in order to access even less attractive markets.

He said, “To achieve this feat, the company took into consideration the most pressing needs of traders and investors and went ahead to build their proprietary platform called the CloudTrade.”

He said that CloudTrade promotes ease of market access by ensuring that competitive and affordable capital can be used to commence trading the financial markets.

Oduneye said traders in the past had to source for foreign currencies to fund their trading accounts, or deposit Naira equivalents, thereby limiting their trading capability and volume.

He said that the strain the currency conversion process put on the traders and even the economy in general had been eliminated with the introduction of CloudTrade.

He said, “With CloudTrade, EGM clients are able to define their trading volumes in naira, while getting up to the minute financial data in the form of economic news and a bird’s eye view on market performance using the powerful built-in indicators.”

“Retail and institutional investors in the Nigerian finance space who have for long craved for an indigenous platform that could provide and combine world class functionality into a user friendly interface now have answer to their requests.”

Oduneye said the company was offering the highest level of transparency, ease of transacting and most importantly constant innovation that would lead to client development.

He said EGM had over 600 active trading clients that qualified to trade on its platforms within three months in Nigeria.

The chief executive officer said that about 50 per cent of trading applications were declined due to Know Your Customer requirement and other regulatory checks in line with international standards.

He said that the reason for necessary checks on every single trading application was to ensure best practice.

He said, “EGM provides a trading platform that brings to the table fast order execution with a depth of analytical tools to access over 3,000 assets such as equities, commodities, forex and spot metals.”.

Oduneye assured potential clients that global industry standards would be applied in the client on-boarding process.

He said that the company was committed to education to help traders improve on their short and long-term financial expectations.

Oduneye said EGM had earmarked the sum of one million dollars for training and retraining of its clients for better results.

Also speaking, Mr Kola Adebayo, EGM Head of Education and Market Analysis, said that the company had developed a curriculum that would aid its clients to become sound in market analysis.

Adebayo said the company, through intensive education, would help clients to achieve both their corporate or individual financial goals.

He said EGM had an intensive programme that taught clients on risk management.

“A lot of people lost money trading online and for us to win their trust, we need to change their views about potentials available in the market,”Adebayo said.

NAN

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Forex

Nigeria’s Diaspora Remittances Decline by 28 Percent to $16.8 Billion in 2020

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US dollar - Investors King

Nigeria’s diaspora remittances declined by 27.7 percent or $4.65 billion from $21.45 billion in 2019 to $16.8 billion in 2020, according to the World Bank Migration and Development report.

A critical look into the report shows remittances to sub-Saharan Africa declined by 12.5 percent in 2020 to $42 billion. This was largely due to the 27.7 percent recorded by Africa’s largest economy, Nigeria, which accounted for over 40 percent of the total remittance inflows into the region.

The report noted that once Nigeria’s remittance inflows into the region are excluded, remittances grew by 2.3 percent in 2020 with Zambia recording 37 per cent.

Followed by 16 percent from Mozambique, 9 percent from Kenya and 5 percent from Ghana.

The decline was a result of the global lockdown that dragged on the livelihood of most diaspora and unclear economic policies.

In an effort to change the tide, the Central Bank of Nigeria (CBN) introduced a Naira 4 Dollar Scheme to reverse the downward trend and boost diaspora inflows into the economy.

However, the reports revealed that other external factors like insecurities, global slow down, weak macroeconomic fundamentals, etc continue to discourage capital inflows.

On Tuesday, the CBN, in a new directive, announced it has halved dollar cash deposit from $10,000 to $5000 per month.

The move is geared towards discouraging overreliance on the United States Dollar and encourage local patronage and production.

Mr. Guy Czartoryski, Head of Research at Coronation Asset Management, had said in the report, “We looked at the top 10 banks and the breakdown of their deposits showed that 40 per cent of their deposits are in dollars and it is quite astonishing.”

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Forex

Deposit Money Banks Reduce Dollar-Cash Deposits by 50 Percent to $5000/Month

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United States Dollar - Investors King Ltd

Nigeria’s Deposit Money Banks (DMBs) have reduced the amount of United States Dollars that customers can deposit into their domiciliary accounts by 50 percent from $10,000 to $5,000 per month.

A bank official who preferred not to be mentioned confirmed the new policy to Investors King.

He, however, stated that the new policy does not apply to customers making electronic transfers as well as oil and gas companies and dollar payments into government accounts.

Checks revealed that the Central Bank of Nigeria (CBN) introduced the new policy to discourage the strong appetite for the United States Dollar, which has continued to rise.

A recent report has shown that despite persistent dollar scarcity, around 40 percent of bank deposits in the nation’s top ten banks were in dollars.

Mr. Guy Czartoryski, Head of Research at Coronation Asset Management, had said in the report, “We looked at the top 10 banks and the breakdown of their deposits showed that 40 per cent of their deposits are in dollars and it is quite astonishing.”

According to an analyst at ARM Securities Limited, Mr. Olamofe Olayemi, “this has to do with how much confidence the people have in the naira. Over time, we have seen significant depreciation in the naira.

“If you look at what happened in 2020, no one expected that the naira would be devalued twice in that year and even the outlook, this year is suggesting further depreciation in the naira.

“So, it makes sense to a lot of people to store their money in dollars. But, from the CBN standpoint, you agree with me that there is dollar scarcity.”

He, therefore, argued that the new policy might discourage financial inclusion and encourage cash outside the banking system.

Again, it is important for the flow of money to be captured in the system,” he said.

The CBN had extended its Naira 4 Dollar Scheme last week to further encourage dollar inflow into the Nigerian economy.

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Naira

Naira Closed at N411.25 to US Dollar at NAFEX Window

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Naira Dollar Exchange Rate - Investors King

The Nigerian Naira declined further against the U.S Dollar on Tuesday ahead of the Ramadan holiday to trade at N411.25 to a single U.S Dollar at the Nigerian Autonomous Foreign Exchange (NAFEX) window.

The local currency plunged as low as N420.23 per dollar during the trading hours of Tuesday despite opening the day at N410.33/US$ before settling at N411.25 to a US dollar.

Investors on the window exchanged $98.33 million on Tuesday.

At the parallel section of the foreign exchange, Naira traded at N483 to a United States Dollar; N673 to a British Pound and N580 to a Euro.

Foreign exchange rates remained largely unchanged at the bureau de change section, with the Naira trading at N482 to a U.S Dollar; N674 to a British Pound and N584 to a Euro.

Several factors continue to weigh on the Nigerian Naira, especially with the foreign reserves hovering around record low and crude oil output not at an optimal level.

Other factors like rising inflation rate and drop in economic activity due to COVID-19 effect on the economy and lack of enough fiscal buffer to cushion the economy.

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