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Naira Closes at 363/Dollar After New Year Break

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7 years ago

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Naira to Dollar Exchange- Investors King Rate - Investors King
  • Naira Closes at 363/Dollar After New Year Break

The naira closed at 363 per United States dollar at the parallel market on Tuesday, the same rate it closed before the New Year break on Friday.

The local currency, which has been hovering around 365/dollar for some months, rose to 364/dollar as the Christmas holiday approached.

The naira later rose to 364/dollar last week before closing at 363/dollar on Friday.

Foreign exchange traders and currency analyst had predicted that the naira would be stable during the Christmas and New Year holidays.

They said the Central Bank of Nigeria’s regular interventions through the injection of dollars into the market would deter currency speculators from making a bet on the local currency.

The naira has been hovering at 360/dollar at the Investors and Exporters FX Window, while it has been quoted at 306.05 at the official market, the level at which the central bank has been intervening.

The CBN has been injecting dollars into the forex market on weekly basis in the past few months.

Meanwhile, the President, Association of Bureau De Change Operators of Nigeria, Alhaji Aminu Gwadabe, has warned that spending by politicians ahead of the 2019 general elections may threaten the stability of the naira.

Gwadabe said the propensity to hoard dollars now, to be spent during political campaigns, was not new to the nation’s political history.

“Political spending may affect exchange rate stability in 2018. Electioneering starts early this time and the tendency for people to hoard the dollar now, to be spent during the campaigns, is not new,’’ Gwadabe said.

The ABCON chief, therefore, called on the regulatory authorities and security operatives to ensure that currency hoarders and speculators do not leverage the 2019 elections to erode the gains recorded in the nation’s foreign exchange market.

Gwadabe noted that the CBN had spent about $8bn in a series of interventions at the forex market, leading to the flattening of rates across board.

According to him, the BDC operators, as critical stakeholders in the forex market, are committed to playing by the rules in ensuring that the naira remained stable.

Since February, when the naira exchanged at N520 to the dollar, the CBN had intervened aggressively to ensure it remained stable at about N363 to the dollar.

Efforts by the CBN and critical stakeholders like the BDCs led to the convergence of rates between the parallel market and the BDC segment.

Meanwhile, most of Africa’s main currencies will remain at a steady level as foreign markets remain sluggish over the holidays.

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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Insurance

Senate Passes Bill to Bolster Nigeria Deposit Insurance, Protect Depositors’ Funds

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5 hours ago

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October 30, 2024

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Insurance - Investors King

The Nigerian Senate has taken a significant step to safeguard depositors and promote trust in the country’s banking system by passing a bill to enhance the Nigeria Deposit Insurance Corporation (NDIC).

The Senate passed the bill on Tuesday, October 29, during its plenary.

Senator Adetokunbo Abiru (APC-Lagos), who sponsored the bill titled “The Nigeria Deposit Insurance Corporation Act 2023” said the bill aims to strengthen the country’s financial system.

According to him, the amendment of the NDIC bill will not only ensure the safety of depositors’ funds but also the stability of financial institutions and promote trust in the banking sector.

Abiru said, “The Nigerian Deposit Insurance Corporation (Amendment) Bill, 2024, is a critical piece of legislation aimed at strengthening the Nigerian financial system.

“The proposed amendments will enhance the NDIC’s capacity to safeguard depositors, ensure the stability of financial institutions, and promote trust in the banking system.

“Given the rapidly evolving nature of the financial sector, this Bill represents a timely response to the challenges and opportunities that lie ahead.”

He added that the bill seeks to empower the corporation by guaranteeing its independence in performing its statutory functions per Section 1 (3) of the principal Act.

“The principal (2023) Act restricts the President’s power to appoint the Managing Director and Executive Directors, requiring recommendations from the Central Bank of Nigeria Governor.

“The 2024 bill now seeks to align this provision with the President’s appointment powers as enshrined in the Constitution of the Federal Republic of Nigeria 1999 as amended.

“The Act’s provision that makes the Permanent Secretary, Ministry of Finance, the Chairman of the Board is also under review due to the demands on that office.

“Furthermore, the bill introduces a requirement for the Minister of Finance to constitute an Interim Management Committee for the Corporation within 30 days after the Board’s term expires or is terminated.

“This is to prevent challenges in the Corporation’s operations caused by the absence of a board.”

The bill, which received the support of all members, was approved following the Senate Committee on Banking, Insurance, and Other Financial Institutions’ report review.

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Banking Sector

No System Upgrade Currently Underway, First Bank Tells Customers 

Published

5 days ago

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October 25, 2024

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FirstBank Headquarter - Investors King

One of the leading first generational banks in Nigeria, First Bank has clarified that it is not embarking on any system upgrade as erroneously reported in the social media.

Many of the commercial bank’s customers have expressed concerns over possible disruptions in banking transactions as fake report filtered that First Bank was upgrading its services.

Some had said there might be difficulties in withdrawing money or using the applications of the bank for their transactions.

Meanwhile, clarifying the misleading reports, First Bank assured its customers of seamless banking operations.

Maintaining that there is no system upgrade underway, a statement issued by the management and obtained by Investors King on Friday explained that the misrepresented statement was intended to its vendors only.

It said the step was focused on transitioning from its current I-Supplier Platform to a new Cloud-Based Supplier for improved benefits for its vendors.

“We wish to address a misleading report circulating in the media regarding a system upgrade at FirstBank.

“The message which was incorrectly interpreted and reported was sent to, and intended for our vendors only and focused on transitioning from our current I-Supplier Platform (our automated platform that connects us to suppliers) to a new Cloud-based Supplier Platform (worldclass platform for managing suppliers), to enable additional capabilities and benefits for our vendors.

“Please be informed that no system upgrade is currently underway, and all our customer applications are fully operational. We are not experiencing disruption to our services, and our banking systems, customer transactions, channels, etc, will not be affected by the enhanced supplier platform.

“Rest assured that our commitment to seamless service delivery remains unwavering as you continue to enjoy uninterrupted access to our services,” the statement reads.

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Loans

NNPC Has Started Settling $6bn Debt to Foreign Suppliers— Wale Edun

Published

6 days ago

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October 24, 2024

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NNPC - Investors King

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun has said the Nigerian National Petroleum Company (NNPC) Limited has commenced the repayment of $6 billion debt owed to suppliers.

Edun made this announcement during a meeting with investors in the U.S. capital on the sidelines of the 2024 annual meetings of the International Monetary Fund (IMF) and the World Bank.

The revelation came amidst growing concerns about the NNPC’s financial stability and its capacity to sustain petrol supply to the domestic market.

The company had previously acknowledged owing suppliers of premium motor spirit (PMS).

Addressing the issue of ongoing foreign exchange subsidies, Minister Edun clarified that “In terms of NNPC and their situation, the reality is that, although the subsidy on May 29, 2023, was removed and was no longer on the balance sheet of the government, it did rear its head, not in terms of petrol subsidy, but foreign exchange subsidy, which was borne elsewhere, and borne mainly by NNPC,” the minister said.

Mr Edun also expressed optimism about the company’s future.

“I think what I can say about their own situation is with where they are now, they have a route to paying down their payables and I’m sure that in no time at all, they will start.

“From what I understand, they have even commenced the process of paying down their payables,”he said.

The NNPC had some months ago acknowledged that it was owing the money, but admitted it was remitting money into the purse of the country.

“But NNPC Ltd., through its subsidiary, NNPC Trading, has many open trade credit lines from several traders.

“The company is paying its obligations of related invoices on a first-in-first-out (FIFO) basis,” he said.

“It is not correct to say that NNPC Ltd. has not remitted any money to the Federation Account since January. NNPC Ltd. and all its subsidiaries remit their taxes to the Federal Inland Revenue Service (FIRS) regularly.

“This is in addition to payments of CIT to road contractors under the Road Investment Tax Credit Scheme. In all, NNPC Ltd. is the largest contributor to the tax revenue shared every month at the Federation Account Allocation Committee (FAAC),” the NNPC had said in a statement in August.

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