- Naira May Record Gain Next Week
The naira is expected to stabilise on the parallel market after international money transfer agencies started selling dollars to Bureau De Change operators in line with the Central Bank of Nigeria directive.
“We have started receiving dollar supply from Travelex and we expect this to gradually impact positively on the naira exchange rate going forward,” the President, Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, told Reuters.
The naira was quoted at 470 to the dollar on the black market on Friday, compared with 473 on Thursday.
The kwacha is likely to remain firm next week due to conversions of hard currency by companies preparing to pay taxes that are due in the local unit on October 14.
At 1117 GMT, commercial banks quoted the currency of Africa’s second-largest copper producer at 9.8900 per dollar from 9.8000 a week ago.
“The Kwacha is expected to continue trading with a bullish tone against the dollar on the back of strong corporate and interbank inflows. Trading range is expected to be between K9.800 and K9.850 in the near term,” Zambia National Commercial Bank said in a note.
The Kenyan shilling is expected to remain stable in the coming week, although dollar sales from multi-national companies buying shillings to pay tax obligations could offer a boost, traders said.
At 1100 GMT, commercial banks quoted the shilling at 101.15/35 to the dollar, compared with 101.25/35 at last Thursday’s close.
“I expect corporates will be selling dollars in advance of tax dues,” said a trader from one commercial bank.
The Ugandan shilling is forecast, to trade on a weaker footing as commercial banks rush to buy dollars in anticipation of further weakening of the local currency due to demand from energy and manufacturing companies.
At 1159 GMT, commercial banks quoted the shilling at 3,408/3,418, weaker than last Thursday’s close of 3,380/3,390.
A trader at one leading commercial bank said “banks will be rushing to expand positions because they don’t want to be caught short.”
The Tanzanian shilling is expected to hold steady in the days ahead, helped by subdued demand for dollars from importers.
Commercial banks quoted the shilling at 2,178/2,188 to the dollar on Thursday, weaker than 2,175/2,185 a week ago.
“I do not see any significant movement in the market over the coming week. The shilling is anticipated to trade in the same levels going forward,” said Francis William, a dealer at Commercial Bank of Africa Tanzania.
UK Banks to Ditch Clients Across Europe
UK banks are “outrageously failing” many tens of thousands of expat clients across Europe as they plot to shut their accounts and cancel credit cards within weeks due to post-Brexit rules.
This is the damning assessment of Nigel Green, the CEO and founder of deVere Group, one of the world’s largest financial advisory and fintech organisations, as most of Britain’s biggest banks send letters to customers in the EU warning them that all services are to be scrapped unless they have a UK address.
Mr Green says: “Most of the UK’s high street banks are plotting to unceremoniously abandon their customers across Europe within weeks.
“Accounts will be shut and debit and credit cards voided – regardless of how much or how little you have in those accounts or how long you have been a client – as it becomes illegal for UK banks to service British customers living in the EU without applying for new banking licences.”
He continues: “Once again, traditional banks are outrageously failing their clients who now need to take urgent steps to continue to be able to access, use, and manage their money.
“The move by these banks will be a major inconvenience to many tens of thousands of Brits living in the EU.”
Before post-Brexit rules come into effect, those affected are being urged to find alternatives to avoid potentially serious financial disruption.
“I would urge expats to now seek a financial services provider that already operates under pan-European rules,” says the deVere Group CEO.
In 2017 the firm launched deVere Vault. deVere Vault provides borderless global services with a ground-breaking e-money app and a single card, multi currency service designed with those with an international lifestyle in mind.
“You’re able to open a deVere Vault account in around five minutes, withdraw money from any cash machine worldwide, get real-time notifications with all your transactions, spend money on the card wherever Mastercard is accepted, and send and receive money in most major currencies,” notes Mr Green.
He concludes: “deVere Vault meets a growing need in an increasingly globalised world for our clients to have borderless access to and use of their money.
“Agile, tech-driven challenger banks and fintech firms are ready to fill the void left by traditional banks who are now having to routinely ditch their customers.”
NNPC Says Private Investors Will Finance Rehabilitation of Downstream Assets
Private Investors to Finance NNPC Rehabilitation of Downstream Assets
The Nigerian National Petroleum Corporation (NNPC) during the weekend said a group of private investors would finance the proposed rehabilitation and replacement of its aging downstream assets, especially petroleum pipelines, across the nation.
In a statement released in Abuja, the Group Managing Director, Mallam Mele Kyari, said some of the assets to be replaced were as old as 40 years and long overdue for replacement.
The managing director explained that the investors to be engaged would be doing the financing under the Finance, Build, Operate and Transfer, BOT, Model, adding that the model became imperative given the state of the nation’s downstream infrastructure.
He said: “Some of these assets are as old as 40 years and they are due for replacement; and when you want to do a replacement of this scale, you do need a lot of resources.
“And we know that we require these assets so we decided that we bring in private partners who will fund these pipelines, they will construct it, they will operate it with us and then ultimately they will fully recover their investment from the tariff which we will pay for using these pipelines. And as soon as they recover their cost and their margin, they will hand over these assets back to us.”
According to the NNPC boss, no fewer than 78 firms have already submitted virtual bids indicating their willingness to undertake the rehabilitation of the downstream pipelines, associated depots and terminal infrastructure of the NNPC through the financing model.
He added that the final partners would be selected by the end of the first quarter of 2021.
Lafarge Africa Says Improved Operating Efficiency Boosts Performance in Q2 2020
Improved Operating Efficiency Bolsters Our Performance in Q2 2020, Says Lafarge
Lafarge Africa plc has said its strong second-quarter performance was due to improved operating efficiency and strategic implementation of the company’s health, cash and cost initiative.
The Chief Executive Officer, Lafarge Africa, Mr. Khaled El Dokani, disclosed this at the company’s virtual Facts Behind Figure presentation on the Nigerian Stock Exchange.
The company grew profit before tax by 29.7 percent to N21.7 billion in the second quarter of 2020, up from N16.33 billion posted in the same period of 2019.
Also, the company’s net profit rose by 60 percent from N9.54 billion recorded in the corresponding period of 2019 to N15.26 billion in the second quarter of 2020.
While its net sales declined by 5.1 percent to N56.85 billion from N59.87 billion in Q2’19, El Dokani said it was due to the COVID-19 negative effect that impacted businesses.
El Dokani said: “The proactive measures we have put in place as a business have been instrumental to the positive results we have seen. Our route-to-market strategy has proven to be effective, particularly, our expanded distribution network which proved very valuable during the peak of the COVID-19 pandemic lock-down.
“We have steadily expanded our retail footprint in our core markets. The recent re-launch of our Supaset brand has continued to gain traction with our customers, especially with the block makers.
“The implementation of our Health, Cash and Cost initiative has and would remain in focus to deliver improvement in our performance.”
He assured that Lafarge Africa would continue to focus on business resilience to ensure a healthy balance sheet while making the health of ‘our people, communities and other stakeholders priority.’
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