Forex

CBN’s New Forex Policy Boosting Manufacturing, Says MAN

Published

7 years ago

May 6, 2017

CBN’s New Forex Policy Boosting Manufacturing

The Central Bank of Nigeria’s creation of a market-driven foreign exchange window has given hope of revival to manufacturers faced with closure or shrinking capacity by easing their raw material imports, an industry group has said.

“The recent pronouncement of the CBN comes as a relief. If the intervention is sustained, there’s no doubt that we will have continued improvement in sourcing raw materials,” the Director-General, Manufacturers Association of Nigeria, Segun Ajayi-Kadir, told Bloomberg in an interview in Lagos.

The apex bank had on April 24 opened a new foreign exchange trading window where currencies sell at market rates. That eased access to foreign currency that’s been restricted since last year as the bank limited the supply of dollars with the country struggling to cope with lower revenue after the price of oil, the country’s main export, fell more than half from mid-2014.

The economy contracted in 2016 for the first time in 25 years as output shrank.

The regulator said late Thursday that its decision announced earlier in the day to increase dollar supply to small importers did not include 41 items, ranging from toothpicks to plastics, previously banned from accessing foreign exchange from the inter-bank market. It leaves a key demand of the manufacturers’ association unmet.

The restrictions “have created a problem for us because some of those items are raw materials that our members require to run their factories. A few companies folded, especially those in plastics and those in glass; some companies also had to downsize because they were not operating at full capacity,” Ajayi-Kadir said.

Meanwhile, the CBN raised more money from the sale of treasury bills than originally planned at an auction this week after it priced its one-year debt to yield more than inflation, in a bid to support the naira.

The CBN raised N230.60bn ($733m) at an auction on Wednesday, N80.60bn more than it originally planned to sell, data showed on Friday.

Treasury bill sales support the currency by draining some of the naira in the market, thereby making the local currency slightly stronger against the dollar, according to a report by Reuters.

The CBN has been intervening since February to prop up the naira after introducing a complex, multi-tiered exchange rate system.

It has sold more than $4bn on the spot and forward currency markets and has been attracting investors in recent months to its one-year debt with high yields.

The central bank offered the one-year debt with a yield of 18.81 per cent, higher than the March inflation rate of 17.26 per cent, to raise N178.60bn. The note was sold at 18.98 per cent previously.

It sold six-month bills at 17.26 and a three-month debt at 13.6 per cent to fetch a total of N52.57bn.

The central bank issues treasury bills twice a month to help the government fund its budget deficit and to help it control inflation.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira

Black Market Dollar to Naira Exchange Rate Today 17th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Published

2 days ago

May 17, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,560 and sold it at ₦1,550 on Thursday, May 16th, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,540
Selling Rate: ₦1,530

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

Forex

SEC and ABCON Explore Collaboration for ‘Kolectyomoni’ Digital Currency Platform

Published

2 days ago

May 17, 2024

Samed Olukoya

The Association of Bureaux De Change Operators of Nigeria (ABCON) has initiated talks with the Securities and Exchange Commission (SEC) to explore collaboration on its upcoming digital currency market platform, ‘Kolectyomoni’.

This move was underscored during an official visit by ABCON representatives to the newly appointed Director General of the SEC, Dr. Timi Agama. Aminu Gwadabe, President of ABCON, conveyed the association’s eagerness to engage with SEC to ensure the smooth operation of its digital currency platform.

Gwadabe emphasized that ABCON recognizes the regulatory oversight of SEC in the financial sector and seeks its guidance to navigate the complexities of the digital currency market.

He pointed out that while digital currencies hold immense potential for financial inclusion and innovation, they also present regulatory challenges that require collaborative efforts between industry stakeholders and regulatory bodies.

Highlighting the significance of embracing digital currencies, Gwadabe noted, “The future of BDC’s business is digital currency.”

He stressed the growing adoption of digital currencies among Nigerians, citing statistics that reveal a rising number of participants in the digital currency ecosystem, with a substantial market size of $9 billion annually.

In response, Dr. Timi Agama expressed SEC’s openness to support and facilitate the growth of the digital currency sector in Nigeria.

He acknowledged ABCON’s initiative in launching the ‘Kolectyomoni’ platform and assured of SEC’s cooperation in providing regulatory guidance and oversight.

Agama reaffirmed SEC’s commitment to fostering innovation in the financial sector while ensuring investor protection and market integrity.

He underscored the importance of collaboration between regulators and industry players to develop robust frameworks that foster innovation and safeguard against potential risks.

Furthermore, Agama encouraged ABCON to finalize the development of the ‘Kolectyomoni’ digital currency platform and submit it to the SEC for thorough review and assessment by the technical team.

He emphasized the need for timely regulatory oversight to address emerging trends in the digital currency market and maintain regulatory compliance.

Naira

Black Market Dollar to Naira Exchange Rate Today 16th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Published

3 days ago

May 16, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,530 and sold it at ₦1,520 on Wednesday, May 15th, 2024.

This indicates a decline in the Naira exchange rate compared to the current rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.