The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, yesterday reiterated the bank’s commitment to ensuring steady availability of foreign exchange for manufacturers.
Emefiele also urged banks as well as Nigerians to strive to end environmental pollution and ensure sustenance of banking principles.
Speaking alongside the Minister of Industry, Trade and Investment, Mr. Niyi Adebayo, at an interactive session with a business team from the United Kingdom.
The apex bank governor explained that the fall in oil prices had affected the inflow of forex.
He affirmed that this resulted to the restriction of access to forex for the importation of goods that could be produced locally, in order to ensure judicious use of forex.
He identified the three main sources of forex inflows to the country as the sale of crude oil, remittances from Nigerians abroad and foreign investors.
Emefiele, represented by the Deputy Governor, Economic Policy, Dr. Kingsley Obiora, stated that some of the issues raised by the companies would be looked into to assist them in their daily operations.
However, Adebayo who facilitated the meeting said the growth of the companies would boost the economy and make more money available for the federal government to build more infrastructure and to create jobs for the youths.
A statement by Adebayo’s aide, Mr. Ifedayo Sayo, said the companies lauded the CBN for funding of local companies and the various reforms put in place to assist in keeping their businesses afloat.
They also solicited for more forex to enable them to continue in business, pay their lenders and maintain their machines.
Some of the companies present at the interactive session included GlaxoSmithKline, a pharmaceutical company, Savanna Energy, AzuraPower West Africa, Guinness Plc.
Representative of GlaxoSmithKline, Mr. Omon Elyhibro, lauded the minister and Emefiele for the support which the businesses had received from the government in the firm’s 50 years of operation in the country.
He said it was the desire of the government to make the country the export hub for pharmaceutical products, adding that this will be realised through a partnership with local manufacturers.
He commended the CBN support for the local manufacturing companies.
On his part, Managing Director of Azura Power West Africa, Edu Okeke, also praised the CBN for its support for the power generation company and called for more support in terms of forex allocation.
Okeke who commended the CBN for the various reforms put in place which had helped the growth of the sector stated that the reforms have helped to unlock the sector.
At the event yesterday, the CBN governor, Emefiele, appealed to the banks as well as Nigerians to strive to end environmental pollution.
He said it was imperative to key into the global movement for a greener world adding that; “We must keep our ecosystem alive so that everything remains green,” he stated.
Emefiele, at a tree planting session alongside the CBN deputy governors, at the bank’s headquarters in Abuja to commemorate the World Environment Day celebration with the theme: “Ecosystem Restoration,” said lending practices must take the environment into consideration and ensure that sustainable banking principles are observed when banks are lending money.
The CBN governor stated that some international financial institutions and development finance agencies have started to demand evidence of compliance with sustainable banking principles before approving monetary assistance.
He said: “As a bank, you want to borrow money from a bank, they will tell you that as long as they find anything that pollutes the environment, that does not make the environment clean and green, they will not condone that credit activity.
“And we must join not only as bankers, but we must also join as Nigerians and members of the global community to ensure that we join the entire community to ensure that our environment remains green.
“It keeps the oxygen flowing well in our lives and we can all live well and avoid pollutants that destroy our lives and environment.”
Emefiele said the apex bank intended to seize the opportunity to join “all well-meaning human beings all over the world to commemorate a day like this.”
“A day like this reminds us to ensure that our ecosystem remains green. And we need to make sure we remove everything that is creating pollution in our environment.”
At the Model Secondary School, Maitama, the Special Adviser to the CBN Governor on Sustainable Banking, Dr. A’isha Mahmood, urged the pupils, who she described as young ambassadors of the environment, to protect the environment in order to avoid adverse environmental issues.
She stated that the CBN and other financial institutions had in 2012, adopted the Nigerian Sustainable Banking framework, a written document, guiding their business operations and practices, to ensure that their actions are socially and environmentally responsible.
Naira Exchange Rates; Monday, June 21, 2021
The Nigerian Naira continues its decline against global counterparts after gaining on the back of the Central Bank of Nigeria’s proposed increase in foreign exchange supply to all forex operators across the country.
Naira gained on the parallel market to exchange at N493 against the United States Dollar on Tuesday 15, June 2021 before dropping to N497 on Wednesday 16, June 2021.
The local currency plunged as low as N502 to a United States Dollar on the parallel market before the CBN announced its plans to up liquidity in an effort to ease scarcity and speed up business activities in the largely import-dependent economy. See the Naira exchange rates across various sections of foreign exchange markets.
Naira Black Market Exchange Rates
Morning * Midday** Evening *** Final Rates
Bureau De Change Naira Rates
Central Bank of Nigeria’s Official Naira Rates
|6/18/2021||SOUTH AFRICAN RAND||28.9539||28.9893||29.0247|
Travellers to Access $4k , Businessmen $5K as CBN Boosts Forex Supplies
Nigerians travelling abroad can access a maximum amount of $4,000 foreign exchange from the banks following the Central Bank of Nigeria’s announcement to increase forex supplies.
Sources from some of the banks said those travelling on business trips could also access a maximum amount of $5,000 for each trip.
The CBN had said in a recent statement that it had concluded plans to increase the amount of foreign exchange allocated to banks to meet legitimate needs.
This followed the warning by the CBN Governor, Mr Godwin Emefiele, to Deposit Money Banks to desist from denying customers the opportunity to purchase foreign exchange.
The purposes to access forex included Personal Travel Allowance, Basic Travel Allowance, tuition fees, and medical payments as well as Small and Medium Enterprises transactions or for the repatriation of Foreign Direct Investment proceeds, the CBN had stated.
At a virtual Bankers’ Committee meeting last week, the bankers discussed how the CBN intended to assist with forex to ensure availability for the upcoming summer period and the return of students to school in September.
The CBN also said the BDCs would continue to have their weekly allocations.
The committee observed that the rates were going up.
It stated, “The CBN has said that all the banks must make available at all times and anyone who wants to buy BTA, PTA, medical fees, student school fees and all the eligible invisible purchases to ensure that Nigerians are not forced to go and queue in the parallel market.
“So what the Central Bank is doing is to encourage all banks to make sure that there is available forex at all times, and that his information should be communicated on all our platforms.
“We are asking our customers to come to the branches and for BTA, for example, present the required documents, which are basically your international passport, your visa, your valid ticket and fill up the form in the bank.
“And what we have been instructed to do is ensure that we don’t turn anybody back and that we should request from the Central Bank once we exhaust the forex that we have.
“The idea is to have a hitch-free summer period and the resumption for children to go back to school. The idea is to ensure there is less pressure on the forex and then the rates will come down.”
Speaking during the virtual meeting, the Group Managing Director, Access Bank, Herbert Wigwe, said, “I think again as part of the central bank’s role in terms of price stability and the need to support small and medium enterprises, there was a highlight of the need for banks to go and support SMEs who import small raw materials for them to set up their businesses.”
The Managing Director, Ecobank, Patrick Akinwuntan, said, “All banks are available to ensure forex need is met.”
Managing Director, Sterling Bank, Abubakar Suleiman, said the CBN had provided sufficient foreign exchange to meet the needs of all legitimate Nigerian travellers and therefore, the idea of going to any other market should not arise at all.
U.S Dollar Gained as Fed Shifts Interest Rates Hike from 2024 to 2023, Crypto Drops
The United States Dollar gained on Thursday after the Federal Reserve raised inflation expectations to 3.4 percent and moved the year it is expected to raise interest rates from 2024 to 2023.
Policymakers suggested that interest rates could be raised twice by late 2023 given “Summary of Economic Projections” (SEP) released on Wednesday.
The dollar index, which tracks the greenback against six major currencies, gained 0.63 percent to 91.103, its highest since May 6.
The jump was as a result of renewed interest in the American economy as growth is expected to hit 7 percent in 2021 despite the rising inflation. Similarly, economic conditions are projected to improve faster than initially predicted.
The Federal Reserve Chair Jerome Powell said “the economic conditions in the committee’s forward guidance will be met somewhat sooner than previously expected.”
“The interesting thing is that the Fed has gone beyond simply acknowledging that inflation is rising and that the U.S. economy has a lot of momentum, and it has essentially shifted to a much more hawkish stance in this set of projections,” said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto.
Powell said the central bank will maintain its $120 billion monthly bond-buying program to continue to support the economy but also suggested the possibility of pulling back on quantitative easing used to keep rates low.
“I think we’re back to talking about a mild rally in the U.S. dollar and the data becoming very important over the summer period prior to Jackson Hole and September’s meeting,” said Simon Harvey, senior FX market analyst at Monex Europe.
Billions Flow Out of Crypto Market Ahead of Better US Economy
Investors are moving money in billions out of the crypto market, according to Whale Alert reports. On Thursday, 26,999,9990 USDT valued at $26,999,990 was transferred from Binance to an unknown wallet while another 19,999,995 USDT transferred from Bitfinex to an unknown wallet.
Investors moved 20,000,000 USDT to Bitfinex; 55,180 Ether worth $134,030,121 from an unknown wallet to another unknown wallet and 55,000 Ether estimated at $133,389,506 was also transferred to an unknown wallet in the early hours of Thursday.
5,000 Ether worth $12,168,082 and 1,000 Bitcoins worth $38,953,357 were transferred from an unknown wallet to Binance. To see the rest of the money being moved out of crypto space visit Whale Alert.
Cryptocurrency market capitalisation dipped by 5.03 percent in the last 24 hours but has lost $898 billion from $2.523 trillion it attained on Wednesday, May 12, 2021, to $1.625 trillion on Thursday, June 17, 2021.
The plunge in cryptocurrency was a result of improving global economic outlook, especially in the United States of America, the largest crypto investing nation.
The unregulated crypto space is largely treated as a haven asset to avert disaster during the global downturn. Meaning, an improvement in the global economy will generally impact cryptocurrency capital inflow and overall performance. Investors King expects cryptocurrency to extend its decline in the third quarter.
Business4 weeks ago
End Of The Road For Internet Explorer As Microsoft Pulls The Plug
Cryptocurrency4 weeks ago
Can cryptocurrency survive regulators? Here’s what Ripple CEO says about XRP’s future
Ethereum4 weeks ago
Ethereum Closes In on Long-Sought Fix to Cut Energy Use Over 99%
Cryptocurrency4 weeks ago
BankDhofar Launches Mobile Banking Payments from Oman to India with RippleNet
Cryptocurrency4 weeks ago
US SEC To Work With Congress To Regulate Crypto Exchanges
Cryptocurrency2 weeks ago
Wei Zhou, Binance’s Chief Financial Officer Resigns
Education3 weeks ago
Senate Passes Bill To End HND/BSc Discrimination
Cryptocurrency3 weeks ago
Crypto Traders Can Now Trade Dogecoin on Coinbase Pro