- Dollar Sales by BDCs Jump 163% in 6 Months
Sales of US dollar to the Bureau De Change Operators (BDCs) across the country rose by 163 percent during the first half of the year, according to the Central Bank of Nigeria‘s economic report.
Alhaji Aminu Gwadabe, the President, Association of Bureaux De Change Operators of Nigeria (ABCON) said the 163 percent, which amounted to $3.1 billion sales, helped sustain the foreign exchange market and protected at least 25,000 jobs in the sub-subsector.
The report showed dollar sales to BDCs rose from $1.2 billion in the first half of 2017 to $3.1 billion in the first half of 2018.
This, Gwadabe attributed to the increase in weekly dollar sales to the BDCs and the success recorded in the Investors and Exporters (I&E) window introduced by the CBN to deepen forex market and facilitate accessibility.
It should be recalled that the CBN increase dollar sales to each BDCs by almost 50 percent in May to $60,000, up from $40,000.
Speaking on the impact of the forex policy, Gwadabe said ” “The overall impact in the economy includes employment generation of over 25,000 in the BDC sub-sector and enhanced investors’ confidence.”
However, said the new automated system introduced by the BDCS will help consolidate on current gains.
“The ABCON automation drive of BDCs operations designed to enhance their visibility and attractiveness is already giving them an information technological (IT) edge in the quest to become direct agents of international money transfer operators”, he said.
FG Generates $9.35bn Foreign Inflow in February -CBN
FG’s Foreign Inflow Stood at $9.35bn in the Month of February
The Central Bank of Nigeria (CBN) said the nation’s foreign exchange inflows stood at $9.35 billion in the month of February.
The apex bank stated this in its monthly report for February.
It said, “Foreign exchange flows through the economy resulted in a net inflow of $9.35bn in the review period, compared with $9.99bn and $4.58bn at end-January 2020 and end-February 2019, respectively.”
The report stated that external revenues declined by 11.7 percent due to the drop in the global oil price to $58.56 per barrel in the month under review.
Therefore, aggregate foreign exchange inflow stood at $16.19 billion in the month, a decrease of 4.4 percent when compared with the month of January.
However, this was 61.7 percent higher than the corresponding period of 2019 when things were normal.
The development relative to the month of January reflected a decline of 8.6 percent and 2.5 percent in inflow through the bank and autonomous sources, respectively.
According to the report, aggregate foreign exchange outflow declined by 1.5 percent to $6.85 billion when compared with the preceding month. Still, it was 26 percent higher than the corresponding period of 2019.
Naira Plunges to Record Low of N470 Against US Dollar on Black Market
Naira Plunges to N470 Against US Dollar on Black Market
The Nigerian Naira plunged further against the United States dollar on the black market on Tuesday as forex scarcity persists.
The local currency depreciated to N470 a US dollar on Tuesday, its lowest in over three years. This was N5 lower than the N465 it exchanged on Monday.
Naira plunged to N460 per US dollar almost three weeks ago and has remained within that range ever since.
This, experts, attributed to the nation’s weak foreign revenue generation and economic uncertainties amid global pandemic. While the Central Bank of Nigeria has put measures in place to arrest the situation and consistently support the nation’s currency, low oil prices and weak foreign revenue generation have continued to dictate investors’ sentiment in the Nigerian market.
This lack of confidence in policy direction has resulted in low capital importation and surged in capital flight, especially those looking to move their funds to a safe haven.
Against the British Pound, the Naira slid to N570, down from N565 it Exchange on Monday and Friday.
This decline continues against the European single currency as the local currency dropped by N5 from N510 it traded on Monday to N515 on Tuesday on the black market.
On the Investors and Exporters’ Forex Window, the Naira remained flat against the US dollar. It was exchanged at N386 to a US dollar, the same rate it traded on Monday.
However, investors’ daily turnover declined from $36.28 million recorded on Monday to 12.91 million on Tuesday.
Meanwhile, OPEC has said Nigeria’s will struggle to increase economic productivity in 2020 given its rising cost of debt servicing and weak oil prices.
This, the cartel attributed to low tax revenue and huge debt servicing to revenue ratio.
Naira Remains Under Pressure at N465/$ on Black Market
Naira Exchanges at N465 to a US Dollar on the Black Market
The Nigerian Naira remained under pressure at N465 to a United States dollar on the black market following the Central Bank of Nigeria (CBN)’s Naira-USD exchange rate adjustment.
The local currency plunged against the US dollar to almost three years low two weeks ago and remained at that level ever since. This was because the market had projected the eventual adjustment in the official foreign exchange rate from N360/$ to N380/$.
On July 8, the CBN devalued the nation’s foreign exchange rate from N361 to N381 per US dollar for investors and importers to better manage the nation’s dwindling foreign reserves and improve access to forex.
Against the British Pound, the Naira traded at N565, the same rate it exchanged on Friday. This continues against the Euro common currency as the local currency remained under pressure at N510 a unit Euro.
On the Investors and Exporters’ foreign exchange window, the local currency gained 0.26 percent against the United States dollar to trade at N386.
Investors traded $36.28 million on the window on Monday. While the CBN official exchange rate remains N381 per USD, on the FMDQ Group website.
Forex scarcity continues to weigh on the nation’s exchange rate due to the weak foreign revenue generation and low oil prices.
Forex1 week ago
Naira-USD Exchange Rate to Hit N430 – Report
Finance1 week ago
DSS Arrests EFCC, Acting Chairman, Magu
News6 days ago
British High Commission to Start Accepting Visa Applications From Nigerians Soon
Forex1 week ago
CBN Starts Using N380/$ Official Rate, Expects to Make it Official Soon
Finance1 week ago
CBN Spends $11.5bn in Q1 2020 to Support the Economy and Dwindling Naira
Business6 days ago
Seplat Appoints Emeka Onwuka as CFO, Executive Director
Stock Market1 week ago
Why You Should Monitor Insider Dealings as a Nigerian Stock Trader
Government7 days ago
FG Approves N109bn Contracts for Four Roads, Hostel