Forex

Naira to Take Cue From MPC Decision Next Tuesday

Published

7 years ago

September 22, 2017

Naira to Take Cue From MPC Decision Next Tuesday

The naira is expected to trade little change against the United States dollar next week as investors await the Central Bank of Nigeria’s Monetary Policy Committee decision on interest rate on Tuesday.

After its two-day bi-monthly meeting held on Monday and Tuesday, the CBN Governor, Mr. Godwin Emefiele, said the committee would announce its policy decisions on September 26.

Although Bloomberg survey showed that the policymakers would leave all the key monetary policy instruments unchanged, analysts said the MPC decisions could affect portfolio inflows and currency market liquidity.

At the Investors and Exporters FX Window, the naira traded at around 360/ dollar on Thursday.

However, investors have been offering to sell the United Sates currency at N365, close to the black market rate of 367.

On the official market, the naira was quoted at 306/dollar, a level at which the CBN has been selling $500,000 daily to lenders to clear matured letters of credit.

A Reuters poll predicted that the Monetary Policy Rate would stay on hold at 14 per cent.

Meanwhile, the Kenyan shilling is expected to be little changed next week on concern the central bank might intervene in the market. The Zambian kwacha may strengthen against the dollar.

The Zambian kwacha is likely to strengthen next week with the supply of dollars improving as companies prepare for tax payments and other local currency month end obligations.

“We are likely to see some good performance ahead, supported largely by conversions for taxes,” the local branch of South Africa’s First National Bank said in a note.

The Ugandan shilling is expected to strengthen over the next few days amid weak demand and inflows from offshore investor. The central bank is due to sell Treasury bonds of three- and 10-year tenors on October 4, and a trader from a leading commercial bank said healthy participation by offshore investor was likely, boosting dollar supplies.

The Tanzanian shilling is expected to remain stable over the next week, helped by end-of-month hard-currency inflows from the mining sector and other foreign investors.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Naira

Naira Gains 2.29% Against Dollar as Forex Liquidity Declines

Published

8 hours ago

September 30, 2024

Yetunde Olugbenga

The Naira gained 2.29% or N35.32 against the dollar to N1,540.78 per dollar from N1,576.10 reported on Thursday.

On a week-on-week basis, the Nigerian Naira gained 1% according to the Nigerian Autonomous Foreign Exchange Market (NAFEM) data.

On Friday, the dollar supplied by willing buyers and sellers declined by 36.44 percent from $334.05 million on Thursday to $212.31 million at the NAFEM window.

Breaking down foreign currency supply for last week, the supply of dollars rose by 111.9%, from $100.21 million on Monday to $212.31 million on Friday.

It was noted that in the parallel market, also known as the black market, the Naira depreciated by N5 per dollar, from N1,695 on Thursday to N1,700 on Friday.

Moreover, during the week, the Naira fell by 2.1%, losing N35 compared to the N1,665 traded on Monday.

According to a statement signed by the Acting Director of the Trade and Exchange Department of the Central Bank of Nigeria (CBN), W. J. Kenya, the CBN sold $60 million to commercial banks and provided dollars to Bureau De Change (BDC) operators at a rate of N1,590 per dollar to stabilise the foreign exchange market and improve liquidity.

It was also gathered that eligible BDCs could purchase up to $20,000 to meet the growing demand for invisible transactions, which include personal travel allowances, medical bills, and educational expenses.

However, BDC operators interested in the intervention are required to sell dollars to end-users at no more than a one percent margin above the CBN’s purchase rate, and they must deposit the required Naira equivalent in the CBN’s designated accounts while submitting the necessary documentation at specific branches located in Abuja, Awka, Kano, and Lagos.

“Our goal is to maintain stability in the foreign exchange market and ensure that eligible end-users can meet their transaction needs,” Kenya stated.

“This move is to ensure adequate liquidity and meet the growing demand for invisible transactions in the market,” the statement read.

Naira

Dollar to Naira Black Market Exchange Rate Today 24th, September 2024

Published

6 days ago

September 24, 2024

Samed Olukoya

The Nigerian Naira exchange rate to the United States Dollar remained at a record low ahead of the Central Bank of Nigeria (CBN) monetary policy decision scheduled for today and tomorrow.

Forex traders bought the Dollar at N1,665 at the parallel market, popularly known, as the black market and sold at N1,675. The British Pound Sterling (GBP) was acquired at N2,220 and sold at N2,240 as shown in the table below.

Naira (NGN) to Dollar (USD) Black Market Exchange Rate Today

Foreign Currency	Buying rate	Selling rate
DOLLAR ($USD)	N1,665	N1,675
POUNDS STERLING (GBP)	N2,220	N2,240
EURO (EUR)	N1,825	1,845
YUAN (CNY)	N222.28	N222.42

At the official forex segment, the local currency was stronger as it was exchanged at N1,587.34 to a United States Dollar while the GBP was traded at N2,066.56 and N2,067.86, respectively.

CBN Exchange Rate Today

Foreign Currency	Buying rate	Selling rate
DOLLAR ($USD)	N1,587.34	N1,588.34
POUNDS STERLING (GBP)	N2,066.56	N2,067.86
EURO (EUR)	N1,761.32	N1,762.42
YUAN (CNY)	N225.35	N225.49
SAUDI RIYAL (SAR)	N423	N423.29

Forex

Nigeria’s Foreign Reserves Gains, Hit $2.35 Billion In Seven Months – Minister Edun

Published

1 week ago

September 22, 2024

Bassey Marshall

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has revealed that the country’s foreign reserves have seen a net inflow of approximately $2.35 billion in the first seven months of 2024.

The minister made this known in Lagos State during the Corporate Customers Forum on Thursday.

Edun attributed the gain in reserves and currency stability to the government’s proactive economic policies.

Furthermore, the minister highlighted some areas that require attention, including Nigeria’s tax-to-GDP ratio, which remains low at around 10%, and the revenue-to-GDP ratio, which stands at 15%.

Edun called for increased spending on infrastructure and social safety nets to address these figures.

His words: “We have relative currency stability. And, of course, the all-important margin of the rates. We’ve seen a gradual elimination of multiple exchange rates.

“We also have foreign exchange liquidity. The gross reserves are up. There has been a net inflow in the first seven months of this year of about $2.35 billion every month.

Minister Edun continued: “On the fiscal side as well, government revenues are growing, and the key to government revenue is not so much that government has revenue to compete with the private sector.

“It’s the fundamentals, the social spending, and the key infrastructure spending. The social safety net spending. Historically, our figures are low. Our tax-to-GDP ratio is as low as 10%. Our revenue-to-GDP ratio is also around 15%.”