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Naira Gains Slightly on I&E Forex Window on Monday

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Naira Gains Marginally on I&E Fx Window on Monday

Naira gained marginally against the US dollar on the Investors and Exporters Forex Window on Monday as daily turnover rose to $63.44 million.

According to the FMDQ Group data, the naira opened the day at N386 against the US dollar on Monday and slipped to N389.75 during the trading hours before moderating to N386.

Activity level expanded to $63.44 million on Monday as currency traders kick-started the week with more activity.

However, the local currency remained flat on the black market at N455 to a US dollar while against the British pound, the naira exchanged at N555.

Against the Euro single currency, the Nigerian Naira depreciated to N498 per unit on Monday, down from N490 it traded on Friday.

This was after the Association of Bureau De Change Operators (ABCON) said speculators were behind the wide difference between the central bank’s stipulated rates and black market forex rates.

Alhaji Aminu Gwadabe, the President, ABCON, said once the licensed bureau de change operators commence sales of forex to end-users, speculators will lose billions and the nation’s forex market will rebalance.

He said, “The return of over 5,000 BDCs to the forex market will add great strength to the naira and lead to major capital losses for forex speculators.

“It happened in 2016 and will happen again in 2020. The return of the BDCs will immediately boost naira recovery and put the enemies of the economy to shame.

“We are committed to the CBN’s exchange rate stability and will take all necessary steps within set rules and regulations to keep the naira stable.”

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.

Forex

CBN Moves Against 55 Companies, Individuals for Forex Infractions

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CBN Commences Investigation into FX Activities of  55 Companies, Individuals

In an effort to ease foreign exchange pressure and better manage the dwindling foreign reserves, the Central Bank of Nigeria has intensified fight against companies and individuals taking advantage of the nation’s limited foreign reserves.

The apex bank said it has commenced investigations into the activities of 55 companies and individuals engaging in foreign exchange transactions.

The central bank attributed the reason for the investigation to foreign exchange deals outside the official Investors & Exporters (I&E) forex window.

Some of the companies being investigated are Stallion Nigeria Limited, Interswitch Nigeria Limited, as well as a leading global shipping line, CMA CGM Nigeria Shipping Limited.

Other big names on the list are Petro-Afrique Energy Services Limited, Steel Force Far East Limited, Auto Petroleum Company Limited, Cavendish Mechanicals Limited, Aquashield Oil & Marine Limited, Haitch & Elf Integrated Services Limited, Fenog Nigeria Limited, and Promasidor Nigeria Limited.

The I&E window was established to facilitate foreign exchange transactions and encourage a moderate market-determined exchange rate.

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Naira Declines to N465 Against US Dollar on Black Market

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Naira Dollar Exchange Rate

Naira Falls to N465 Against US Dollar on Black Market

Nigeria’s economic uncertainties continued to weigh on the Nigerian Naira despite the Central Bank of Nigeria’s forex sale resumption.

The local currency declined by N3 from N462 a US dollar to N465 on the black market even with over $58 million injected into the forex market through the bureau de change.

Against the British Pound, Naira depreciated by N5 from N595 to N600 on Friday while it dipped by N3 against the European common currency to N548, down from N545 it traded on Thursday.

A series of weak economic fundamentals and anti-people policy continued to hurt the nation’s economic outlook and investors’ confidence.

In a recent event, the Nigerian government simultaneously raised electricity tariffs, pump prices and foreign exchange rates in an economy that depends on imports for most of its supplies.

Also, with the unemployment rate at over 27 percent, inflation rate over 13 percent and the number of companies shutting downing operation rising on a daily bases, foreign investors and even local investors are now holding back on investments needed to support the nation’s weak foreign reserves and cushion the negative effect of COVID-19.

While the exchange rates have moderated slightly from COVID-19 peak, it remains close to COVID-19 record.

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Zenith Bank Joins Other Banks to Cap International Spend Limit at $100/Month

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Zenith Bank Caps International Spend Limit at $100 Per Month

Following persistent forex scarcity impacting the nation, Zenith Bank has joined other deposit money banks capping international spend limits.

In an e-mail to customers, the lender said “Please be informed that the monthly international spend limit for your Zenith Bank Naira Card has been reviewed to US$100 while the use of Zenith Bank Naira cards for international Automated Teller Machine cash withdrawals is still temporarily suspended.’

It added that this review is in response to change in Nigeria’s macroeconomic factors.

The bank, however, advised those with higher international spend requirements than the US$100 stipulated above to visit any Zenith branch and request a foreign currency debit or prepaid card “which are available in US Dollar, Pounds and Euro variants.”

This is coming a few weeks after UBA, GTBank, First Bank and others capped their international spend limits to $100 for similar reasons. However, Zenith’s decision was after the Central Bank of Nigeria commenced forex sale to the Bureau De Change Operators across the country.

 

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