Monday, May 17African Business News
Shadow

Tag: Naira

Naira falls across forex markets as CBN moves against IMTOs

Naira falls across forex markets as CBN moves against IMTOs

Finance
On January 22, 2021, the exchange rate between the naira and the dollar depreciated closing at N394.17/$1 at the NAFEX (I&E Window) where forex is traded officially. Forex turnover, however, dropped by about 42.2% as pressure on the foreign exchange market continue On January 22, 2021, the exchange rate between the naira and the dollar depreciated closing at N394.17/$1 at the NAFEX (I&E Window) where forex is traded officially. Forex turnover, however, dropped by about 42.2% as pressure on the foreign exchange market continues. The Central Bank of Nigeria (CBN) in a new circular, read the riot act to the International Money Transfer Operators (IMTOs) as they have threatened to sanction some of them who still facilitate diaspora remittances in naira, co...
The Naira tipped to recover against the Dollar in early 2021

The Naira tipped to recover against the Dollar in early 2021

Economy
What Has Happened? Strong demand for dollars and a lower than expected inward flow of foreign currency caused the Nigeria Central Bank (NCB) to take this action. It has led to the Naira falling to 500 per dollar in the parallel market. The Abuja-based bank told money exchange operators that they can sell the Naira at a rate of 392 per dollar, which is a change from the previous figure of 386. Currency traders can buy a dollar at a cost of 390 Naira, which increased from the old figure of 384. In terms of international money transfers, the figure changed from 383 Naira for a Dollar, to 388. This latest alteration to the exchange rate comes after similar moves by the NCB in March and July of this year. One of the issues faced by Nigeria is the fall in crude oil prices. This comm...
THE NIGERIA’S FX CRISIS:  OVERARCHING CONSEQUENCE OF INSECURITY AND STRUCTURAL DEFICIENCY

THE NIGERIA’S FX CRISIS: OVERARCHING CONSEQUENCE OF INSECURITY AND STRUCTURAL DEFICIENCY

Economy, Finance
The Nigerian Naira has lost close to 30% in value within the last one year, and more than 200% in the last 10 years. The situation has led to a spike in capital outflow, high unemployment, the alarming rate of inflation and other direct and indirect consequences associated with exchange rate crisis. While greater attention has been placed on COVID-19 as the root cause of the diverse economic challenges this year, the current FX situation should be looked at from diverse perspectives; primarily, the existing structural and policy challenges that have been limiting the country’s FX earnings over the years and also the COVID-19 induced shock on global energy demand. The COVID-19 Effect Earlier this year, as a result of restrictions imposed by countries when COVID-19 was declared a glob...
Experts Call for Measures to Support Naira Stability

Experts Call for Measures to Support Naira Stability

Business
Some financial market experts have advised the federal government to take measures to ensure that the value of the naira against the dollar is preserved. They suggested that more items should be added to the Central Bank of Nigeria’s list of items not allowed to source forex from the regulator’s windows. This, according to them, would help cut down demand for dollars. According to a forex expert, Jamiu Hamisu ‘‘In 2016, the naira began depreciating against the Dollar following global economic down-turn. The naira went as low as N520 to $1 and this was when Vice President Yemi Osinbajo became acting President.” A foreign exchange trader, Patrick Oga, said the major instruments to ensure naira stability is the oil price and reserves. He added: “The best the CBN can do is to c...