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FX Window Records $1.11bn Transactions in One Week

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  • FX Window Records $1.11bn Transactions in One Week

The level of activities on the Investors and Exporters (I&E) foreign exchange (FX) window strengthened to $1.110 billion in just one week, compared with the $759.2 billion recorded the preceding week.

However, the indicative exchange rate for the I & E window, known as the Nigerian Autonomous Foreign Exchange (NAFEX), which gained on the first two trading days, to N359.91/$1 and N359.83/$1, closed the week at N360.41 to the dollar. This represented an appreciation by 16 kobo, compared with the N360.25 to the dollar it closed on this segment of the market, the preceding week.

Also, the naira strengthened against the dollar at the interbank market (NIFEX), the Bureau De Change and parallel market segments to N361/$ and N364/$ respectively.

These were amid injections by the CBN worth $210 million into the foreign exchange market of which$100 million was allocated to Wholesale (SMIS),$55 million was allocated to small and medium scale enterprises and $55 million was sold for invisibles.

Meanwhile, dated forward contracts at the interbank OTC segment appreciated amid sustained increase in the foreign exchange reserves – the 1-month, 2-month, 3-month and 6-month contracts appreciated week-on-week by 0.24 per cent, 0.34 per cent, 0.42per cent and 1.25 per cent to close at N365.05/$, N370.16/$, N375.62/$ and N392.33/$ respectively.

“This week, we retain our favourable outlook for the exchange rate amid sustained stability in global crude oil prices which should result in further build-up in foreign reserves as well as CBN’s continued intervention in the various segments of the interbank foreign exchange market,” analysts at Cowry Assets Management Limited stated.

Following the success of the $3 billion Eurobond issue by the federal government last month, coupled with higher oil prices and production, the Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, last week disclosed that the country’s external reserves have hit a four-year high of $38.2 billion.

With the rate of accretion, the reserves are expected to meet the central bank’s projection of $40 billion by the end of 2017.

Emefiele said: “In January 2014, Nigeria’s reserves were about $40 billion and by October 2016, it had dropped to $23 billion, all because of the haemorrhaging of foreign exchange.

“But I am happy that today, we are beginning to sing positive songs and our story is looking good at this time. We have seen reserves move up from the $23 billion to $38.2 billion.”
He stressed the need for the country to focus on job creation to cater for Nigeria’s rising population and create job opportunities for Nigerian youths.

He also emphasised on the need for private sector support, saying government alone cannot create jobs.

FX Restriction on 41 Items

The CBN at the weekend said the restriction of access to FX on the 41 items about two years ago has had a positive impact on the economy.

The Acting Director, Corporate Communications Department of the Bank, Mr. Isaac Okorafor stated this at the CBN Fair, a sensitisation programme, held at the Cultural Centre in Calabar, Cross-River State.

Okorafor said the implementation of the policy has created employment and helped to conserve the hitherto depleting nation’s foreign reserve, therefore buoying up the economy. Okorafor, who was represented by Mr. Chukwudum Nzelu said the restriction of access to FX placed on the 41 items made Nigerians to start looking inward for the production of goods and products that the country has comparative advantage to be produced locally.

The CBN spokesman explained in a statement that the successful implementation of the 41 items policy gave birth to the other initiatives such as the Anchor Borrowers’ Programme (ABP) which has caused a revolution in the production of rice across the country.

Continuing, he said the production of rice under the ABP was not only to ensure food security, but to create jobs along the value chain of rice production. He added that with improved seedlings and farming techniques under the Anchor Borrowers’ Programme, rice production which stood at 3.5 tons per hectares has jumped to 7 tons per hectare.

Okorafor urged the participants to also key-in into the Accelerated Agricultural Development Scheme (AADS) which was targeted at youths between the ages of 18 to 35 years.

The AADS when fully operational, is expected to employ at least 10 thousand jobs per state, across the 36 States of the Federations including the FCT. The essence of this initiative, according to him, was to reduce drastically youth unemployment.

Earlier in his welcome remarks, the Branch Controller, CBN Calabar Branch, Dr. Graham Kalio said that the CBN fair was an interactive forum aimed at bridging the information gap that might exist concerning the policies, programmes and activities of the apex Bank.

The fair was attended by farmers, SMEs, persons from government ministries, departments and agencies (MDAs) and others who were genuinely interested in taking advantage of the CBN polies and programmes.

Interbank Naira Market

In the week under review, the interbank lending rates moderated on the back of boost in financial system liquidity.

Specifically, treasury bills worth N32.23 billion matured via open market operations while FAAC disbursements worth N532.8 billion were made.

Hence, the Nigerian Interbank Offered Rate (NIBOR) for overnight funds, 1-month, 3-month and 6-month tenor buckets fell week to seven per cent (from 31.29%), 17.68 per cent (from 19.17%), 18.58 per cent (from 20.18%) and 19.94 per cent(from 22.46%) respectively. Also, the NITTY fell for all maturities tracked following renewed sell pressure: yields on the 1-month, 3-month, 6-month and 12-month maturities declined to 14.86 per cent(from 16.75%), 15.37 per cent (from 15.98%), 16.05per cent (from 18.98%) and 15.94 per cent (from 17.79%) respectively.

“This week, treasury bills worth N138.56 billion will mature, hence, in addition to recent FAAC inflows, we expect boost in financial system liquidity with resultant stability in interbank lending rates,” Cowry Assets Management analysts stated further.

Bond Market

Against the backdrop of boost in financial system liquidity, local OTC bond prices appreciated (and yields decreased) across the maturities tracked following renewed bargain hunting activity.

Specifically, the 20-year, 10.00% FGN July 2030 bond, the 10-year, 16.39% FGN JAN 2022 paper, the 7-year, 16.00% FGN JUN 2019 paper and the 5-year, 14.50% FGN JUL 2021 paper increased by N1.29, N0.50, N0.09 and N1.32 respectively while their corresponding yields declined to 14.51% (from 14.66%), 14.36% (from 14.52%), 14.98% (from 15.05%) and 14.56% (from 15.05%).

Similarly, FGN Eurobonds prices tanked across the maturities amid sustained profit taking activity on the London Stock Exchange.

Specifically, the 10-year bonds, 6.75% JAN 28, 2021 and 6.38% JUL 12, 2023 shed N0.30 and N0.21 respectively (corresponding yields increased to 4.66% and 5.29% from 4.57% and 5.26% respectively) while the 5-year, 5.13% JUL 12, 2018 bond lost N0.10 (yield rose to 3.46% from 3.35%).

This week, the CBN on behalf of the Debt Management Office will auction FGN bonds worth N100 billion, viz: 5-year 14.50% FGN JUL 2021 paper worth N50 billion and 10-year, 16.29% FGN MAR 2027 bond worth N50 billion.

Also, Cowry Assets Management Limited anticipates their marginal rates to trek south-wards from their previous stop rates of 14.79 per cent and 14.80 per cent respectively in line with declining inflationary trend.

“At the OTC market, we anticipate bargain hunting with resultant price increase amid expectation of boost in liquidity,” they added.

FAAC

The various states of the federation will now be part of the reconciliation team of the Nigerian National Petroleum Corporation (NNPC) revenue for the federation account to avoid discrepancies .

The Chairman, Commissioners of Finance Forum and Adamawa State Commissioner for Finance, Mallam Mahmoud Yunusa, who disclosed this last week, said the NNPC owned up to the shortfall in its account which culminated in the call-off of the Federation Account Allocation Committee (FAAC) meeting penultimate week.

Yunusa, who spoke at the end of the FAAC meeting in Abuja said: “They agreed there was shortfall in the earlier account given to us, but no fraud was intended. So going forward, we would be fully involved in the account.

“In the reconciliation that took place, some state governors were involved, a committee was raised by the National Economic Council (NEC).”

Meanwhile, the three tiers of government shared for November the sum of N532.758 billion.
The Permanent Secretary of the Federal Ministry of Finance, Dr. Mahmoud Isa Dutse, who chaired the session in place of Minister of Finance, Mrs. Kemi Adeosun, told the media that the sum N443.045 billion was statutory.

Under this tranche, the federal government got N205.700 billion, state governments got N104.334 billion, local governments received N80.437 billion, N40.847 billion was shared as 13 per cent derivation proceeds to went to the oil producing states, while N11.726 was set aside as cost of collection to revenue generating agencies and Federal Inland Revenue Services (FIRS) refund.

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.

Naira

Daily Naira Exchange Rates; Thursday, February 25, 2021

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Daily Naira Exchange Rates; Thursday, February 25, 2021

The Nigerian Naira traded at N480 to a United States Dollar in the early hours of Thursday, February 24, 2020 at the parallel market popularly known as the black market. While the British pound was exchanged at N670 and Euro sold for N580. See the details below.

Daily Naira Black Market Exchange Rates

Morning * Midday** Evening *** Final Rates

Date USD GBP EURO YUAN Canadian Australian
NGN BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL
24/02/2021 475/480* 655/670* 570/580* 60/68 385/395 282/300
24/02/2021 475/480 655/670 570/580 60/68 385/395 282/300
23/02/2021 475/480 655/665 575/582 60/68 385/395 282/300
22/02/2021 475/480 652/660 575/580 60/68 385/395 282/300
19/02/2021 474/478 648/655 570/577 60/68 385/395 282/300
18/02/2021 472/477 645/655 570/575 60/68 385/395 282/300
17/02/2021 472/478 645/655 570/575 60/68 385/395 282/300
16/02/2021 465/473 645/652 565/570 60/68 385/395 282/300
15/02/2021 465/473 642/652 562/570 60/68 385/395 282/300
12/02/2021 465/473 642/650 562/570 60/68 385/395 282/300
11/02/2021 465/475 640/650 560/570 60/70 385/400 280/300
10/02/2021 472/478 645/652 565/575 60/70 385/400 280/300
09/02/2021 474/480 645/655 567/575 60/70 385/400 280/300
08/02/2021 474/480 645/655 567/575 60/70 385/400 280/300
05/02/2021 474/480 645/653 567/578 60/70 385/400 280/300
04/02/2021 474/480 645/653 567/578 60/70 385/400 280/300
03/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
02/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
01/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
29/01/2021 474/480 642/652 575/580 60/70 385/400 280/300

 Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
24/02/2021 470/480 654/660 570/578
24/02/2021 470/480 654/660 570/578
23/02/2021 470/478 654/660 570/578
22/02/2021 470/477 650/656 570/577
19/02/2021 465/476 645/656 565/573
18/02/2021 465/475 640/652 563/570
17/02/2021 465/477 640/655 562/572
16/02/2021 460/475 640/652 562/570
15/02/2021 460/475 638/652 561/568
12/02/2021 467/475 635/650 562/570
11/02/2021 465/475 640/655 560/575
10/02/2021 472/478 640/655 565/575
09/02/2021 472/478 640/655 565/575
08/02/2021 472/478 640/655 565/575
05/02/2021 472/478 640/650 565/575
04/02/2021 472/478 640/650 565/575
03/02/2021 471/478 640/650 572/580
02/02/2021 471/478 640/655 572/580
01/02/2021 471/478 640/655 572/580
29/01/2021 471/477 640/648 570/579

Central Bank of Nigeria’s Official Naira Rates

Date Currency Buying(NGN) Central(NGN) Selling(NGN)
2/24/2021 US DOLLAR 379 379.5 380
2/24/2021 POUNDS STERLING 535.7923 536.4992 537.206
2/24/2021 EURO 461.0914 461.6997 462.308
2/24/2021 SWISS FRANC 417.6309 418.1818 418.7328
2/24/2021 YEN 3.5805 3.5853 3.59
2/24/2021 CFA 0.6825 0.6925 0.7025
2/24/2021 WAUA 546.5445 547.2656 547.9866
2/24/2021 YUAN/RENMINBI 58.7606 58.8386 58.9166
2/24/2021 RIYAL 101.0505 101.1838 101.3171
2/24/2021 SOUTH AFRICAN RAND 26.0338 26.0681 26.1025

 

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Naira

Daily Naira Exchange Rates; Wednesday, February 24, 2021

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Daily Naira Exchange Rates; Wednesday, February 24, 2021

Naira remained weak against global counterparts as the local currency opened at N480 against the United States Dollar on the black market in the early morning of Wednesday,  February 24, 2020.

Daily Naira Black Market Exchange Rates

Morning * Midday** Evening *** Final Rates

Date USD GBP EURO YUAN Canadian Australian
NGN BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL
24/02/2021 475/480 655/670 570/580 60/68 385/395 282/300
23/02/2021 475/480 655/665 575/582 60/68 385/395 282/300
22/02/2021 475/480 652/660 575/580 60/68 385/395 282/300
19/02/2021 474/478 648/655 570/577 60/68 385/395 282/300
18/02/2021 472/477 645/655 570/575 60/68 385/395 282/300
17/02/2021 472/478 645/655 570/575 60/68 385/395 282/300
16/02/2021 465/473 645/652 565/570 60/68 385/395 282/300
15/02/2021 465/473 642/652 562/570 60/68 385/395 282/300
12/02/2021 465/473 642/650 562/570 60/68 385/395 282/300
11/02/2021 465/475 640/650 560/570 60/70 385/400 280/300
10/02/2021 472/478 645/652 565/575 60/70 385/400 280/300
09/02/2021 474/480 645/655 567/575 60/70 385/400 280/300
08/02/2021 474/480 645/655 567/575 60/70 385/400 280/300
05/02/2021 474/480 645/653 567/578 60/70 385/400 280/300
04/02/2021 474/480 645/653 567/578 60/70 385/400 280/300
03/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
02/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
01/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
29/01/2021 474/480 642/652 575/580 60/70 385/400 280/300

 Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
24/02/2021 470/480 654/660 570/578
23/02/2021 470/478 654/660 570/578
22/02/2021 470/477 650/656 570/577
19/02/2021 465/476 645/656 565/573
18/02/2021 465/475 640/652 563/570
17/02/2021 465/477 640/655 562/572
16/02/2021 460/475 640/652 562/570
15/02/2021 460/475 638/652 561/568
12/02/2021 467/475 635/650 562/570
11/02/2021 465/475 640/655 560/575
10/02/2021 472/478 640/655 565/575
09/02/2021 472/478 640/655 565/575
08/02/2021 472/478 640/655 565/575
05/02/2021 472/478 640/650 565/575
04/02/2021 472/478 640/650 565/575
03/02/2021 471/478 640/650 572/580
02/02/2021 471/478 640/655 572/580
01/02/2021 471/478 640/655 572/580
29/01/2021 471/477 640/648 570/579

Central Bank of Nigeria’s Official Naira Rates

 

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Naira

Daily Naira Exchange Rates; Monday, February 22, 2021

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Daily Naira Exchange Rates; Monday, February 22, 2021

Naira exchanged at N480 to a United States Dollar on Monday at the parallel market, while Pound and Euro traded at N660 and N580, respectively.

Daily Naira Black Market Exchange Rates

Morning * Midday** Evening *** Final Rates

Date USD GBP EURO YUAN Canadian Australian
NGN BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL
22/02/2021 475/480 652/660 575/580 60/68 385/395 282/300
19/02/2021 474/478 648/655 570/577 60/68 385/395 282/300
18/02/2021 472/477 645/655 570/575 60/68 385/395 282/300
17/02/2021 472/478 645/655 570/575 60/68 385/395 282/300
16/02/2021 465/473 645/652 565/570 60/68 385/395 282/300
15/02/2021 465/473 642/652 562/570 60/68 385/395 282/300
12/02/2021 465/473 642/650 562/570 60/68 385/395 282/300
11/02/2021 465/475 640/650 560/570 60/70 385/400 280/300
10/02/2021 472/478 645/652 565/575 60/70 385/400 280/300
09/02/2021 474/480 645/655 567/575 60/70 385/400 280/300
08/02/2021 474/480 645/655 567/575 60/70 385/400 280/300
05/02/2021 474/480 645/653 567/578 60/70 385/400 280/300
04/02/2021 474/480 645/653 567/578 60/70 385/400 280/300
03/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
02/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
01/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
29/01/2021 474/480 642/652 575/580 60/70 385/400 280/300

 Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
22/02/2021 470/477 650/656 570/577
19/02/2021 465/476 645/656 565/573
18/02/2021 465/475 640/652 563/570
17/02/2021 465/477 640/655 562/572
16/02/2021 460/475 640/652 562/570
15/02/2021 460/475 638/652 561/568
12/02/2021 467/475 635/650 562/570
11/02/2021 465/475 640/655 560/575
10/02/2021 472/478 640/655 565/575
09/02/2021 472/478 640/655 565/575
08/02/2021 472/478 640/655 565/575
05/02/2021 472/478 640/650 565/575
04/02/2021 472/478 640/650 565/575
03/02/2021 471/478 640/650 572/580
02/02/2021 471/478 640/655 572/580
01/02/2021 471/478 640/655 572/580
29/01/2021 471/477 640/648 570/579

Central Bank of Nigeria’s Official Naira Rates

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