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Naira Loses Value Against Dollar |The Republican News

The Naira on Wednesday depreciated marginally against the dollar at the investors’ window, trading at N364, weaker than N363.72 posted on Tuesday.

Market turnover stood at 264.04 million dollars, while it traded at N306.35 to the dollar at the official CBN window.

At the parallel market, the Naira closed at N359.5 to the dollar, while the Pound Sterling and the Euro closed at N482 and N421.

Trading at the Bureau De Change window saw the Naira close at N360 to the dollar, while the Pound Sterling and the Euro closed at N482 and N421.

The Nigerian currency remained stable at the market largely due to series of interventions by the CBN.

(NAN)

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Oil Price Rise Due To ‘Weaker Dollar And Not OPEC Pact’, Says Rosneft Boss |RN

Gaurav Sharma
sevastopol rosneft                              © Reuters Sevastopol rosneft
The recent rise in oil prices is down to a weaker dollar and not ongoing efforts by Opec and selected non-Opec producers to curb crude production, according to Igor Sechin, chief executive officer of Russia’s Rosneft.

Speaking to news agency Tass on Friday (8 September), the boss of the Russian majority state-owned oil and gas giant, and close confidant of President Vladimir Putin, added the Opec deal has ‘no impact’ on the crude market.

At 12:15 pm BST, the Brent front-month futures contract was up 0.37% or 20 cents to $54.69 per barrel, comfortably above the psychological $50 level.

“The Americans support their shale oil producers through dollar depreciation. I believe that the Opec deal has no impact on the market, it is the dollar devaluation,” Sechin remarked.

On 25 May, Opec and 10 non-Opec producers, including Russia, decided to extend their 1.8 million barrels per day headline output cut to March 2018. Opec is scheduled to meet next on 30 November at its Secretariat in Vienna, Austria, amid market speculation that the deal might well be rolled over again for another six months.

However, Sechin said it would all depend on Opec heavyweight Saudi Arabia, and Riyadh’s plans to list a minority stake in state oil behemoth Saudi Aramco.

“If it [Saudi Arabio] goes for the listing, they will be interested in higher prices and will probably encourage their Opec partners to extend it. If they don’t, they will be less interested.”              (International Business Times)

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Dollar To Fall Further As Hoarders Count Losses, CBN Plans For More Intervention

nairadollars

 

…Naira firms at 375/$1

From Uche Usim, Abuja

Barring unforseen circumstances, the United States dollar is set to crash further this week as the Central Bank of Nigeria (CBN) plans yet another round of interventions in the interbank market.
This is as the naira has continued to do extremely well in the black market, firming at N375/$1 in most Bureaux De Changes in Abuja.
Daily Sun findings reveal that most forex hoarders who hitherto calculated that the apex bank’s interventions were not sustainable have continued to record heavy losses with the latest interventions in February.
A source at popular black market spot at Sheraton Hotels, Abuja who craved anonymity said: ‘some rich men have started bringing their dollars for us to sell because the value has been going down. Some of them claimed they bought dollars at N380. Another said he bought at N400 and so if they don’t sell now, they’ll lose seriously. So they’re bringing the dollars out because the value is dropping”, he said.
However, there were indications at the weekend that the apex bank planned to pump in more foreign exchange into the interbank space to meet the demands of genuine wholesale and retail customers as well as strengthen the value of the naira against other international currencies.
The planned move by the CBN, sources say, will further firm up the naira against other currencies as the exchange rates of the greenback and the United Kingdom Pound Sterling continue to move southwards.
Investigations revealed that the US dollar, Euro and the Pound, exchanged at the parallel market over the weekend at the rates of N375, N405 and N475, respectively, with the hope that the figures will further nosedive this week.
Speaking at the weekend, the Acting Director, Corporate Communications Department, CBN, Isaac Okorafor, confirmed the plan to inject more foreign exchange into the forex market in the weeks ahead.
According to him, the move underscores the commitment of the CBN to sustain the tempo of liquidity in the interbank market in the interest of different categories of genuine end-users.  (The Sun)

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Naira Hits 520 Per Dollar, Forex Retailers Examine CBN Action |The Republican News

nairadollars

Oyetunji Abioye

The naira tumbled to 520 against the United States dollar at the parallel market on Monday as scarcity of the greenback continued to keep the exchange rate in a free fall mode.

The naira had closed at 516/dollar on Friday, after hitting 510/dollar and 507/dollar last Thursday and Tuesday, respectively.

Experts said demand for dollar for school fees payment overseas as well as Personal Travel Allowance by intending travellers was taking a toll on the exchange rate at the parallel market.

This came just as retail currency traders tried to digest the Central Bank of Nigeria’s new decision to sell dollars to retail users through commercial banks, Reuters reported.

The CBN is planning to sell $1m weekly to each of the country’s 21 commercial banks at a rate of N375 to clear a backlog of demand for retail users and try to narrow the premium between the official and black market rates.

Retail currency users buy dollars from licensed Bureaux de Change operators. However, due to the CBN’s inability to meet dollar demand, the BDCs have tended to source dollars from private sources and resell at a much higher margin, fuelling the black market.

Forex traders told Reuters that some banks had compiled a list of bids from customers awaiting dollars.

The CBN has been selling dollars at N305 to clear a backlog of demand from manufacturing, agriculture and airline companies, hoping also to help drag the country out of its worst recession in 25 years.

Experts are divided over the outlook for the naira this year. Some experts have said the naira may hit between 520/dollar and 1000/dollar at the parallel market this year unless the CBN reviews its forex policy.

An economic expert and Chief Executive Officer of CocoSheen Nigeria Limited, Mr. Henry Boyo, said the naira would hit 1000/dollar unless the central bank reviewed its monetary policy framework.

He said the framework was skewed against the naira.   (Punchng.com)

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Naira Crashes To 516 As Dollar Scarcity Worsens |The Republican News

Oyetunji Abioye

nairadollars

The naira appears to have entered a free fall mode with the local currency selling for 516 per United States dollar on the streets of Lagos on Thursday.

The naira plummeted at the parallel market from 510/dollar on Wednesday to 516/dollar on Thursday.

Currency dealers on the streets of Lagos Island sold the greenback at 516 and bought same for 513. In Egbeda, a major black market centre in Lagos, the naira was sold for 516 and bought at 510. At the Murtala Muhammed International Airport, Lagos, the dollar was bought on the parallel market for 516 and sold at 513.

On Wednesday, the local currency had closed at 507 against the greenback as acute dollar shortage continued to weigh on the currency market.

The local currency traded at 507/dollar on Monday and Tuesday on the black market.

Experts are divided over the outlook for the naira this year. However, some analysts have predicted that the local currency will take further beating against the dollar this year.

The Chief Executive Officer, Financial Derivatives Limited, Mr. Bismarck Rewane, said the local currency would hit 520/dollar this year on the parallel market and touch 350/dollar at the official market.

An economic expert, Mr. Henry Boyo, has predicted that the naira will hit 1000/dollar on the parallel market this year if the Central Bank of Nigeria fails to review its monetary policy framework.

According to him, the current monetary policy framework adopted by the CBN is skewed against the naira.

Other experts including the CEO of Afrinvest, a local research and investment advisory firm, Mr. Ike Chioke, says the naira will depreciate further against the dollar this year unless the CBN reforms the currency market.

Meanwhile, analysts have predicted that the naira will face fresh pressure on the parallel market next week with dollar supply falling short of demand by persons seeking currency to pay school fees abroad as the CBN continues to ration forex for businesses.

Demand for dollars has soared even though the external reserves have reached $29bn.

The naira continues to trade flat at the official interbank window at 305.5 to the dollar.

Traders said demand pressure was mounting on the black market but dollar supply had not significantly improved, suggesting further depreciation of the local currency might be coming, Reuters reported.  (Punchng.com)

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Naira Tumbles To 490 As Dollar Shortage Continues |The Republican News

                                                                           Naira notesOyetunji Abioye

THE naira tumbled against the United States dollar to 490 on Monday from 487 on Friday, as acute shortage of the greenback continued to batter the economy and the country’s foreign exchange markets.

Before falling to 487 on Friday, the local currency had consecutively closed flat at 485 for four days last week.

The severe shortage of the dollar has put the naira under persistent pressure at both the official and parallel forex markets.

The global crash in the prices of crude oil, Nigeria’s main forex earner, has brought untold hardships to Nigerians.

Economic and financial experts said unless the lingering dollar supply problem was abated, the volatility in the exchange rate and the consequent economic challenges might be endless.

“The challenge with the forex market is still the supply issue; price (exchange rate) is determined by the interplay of demand and supply,” a currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, had said.

According to the Managing Director, Cowry Asset Management Limited, Mr. Johnson Chukwu, the Federal Government needs to access an emergency lifeline of about $10bn from the International Monetary Fund to stabilise the exchange rate and restore investor confidence to the financial markets.

Economic and financial experts expect the naira to weaken further against the dollar as the Christmas holiday begins this week.

They also argued that the crackdown on the parallel market forex traders and the persistent scarcity of the greenback would make further weakening of the local currency inevitable.

The naira had, however, consistently closed around 305.5 a dollar at the official window since August.

A few weeks ago, the naira closed flat at 470 against the greenback over a period of over a week.

The naira had plunged to 470, down from 455 on the back of a fresh dollar shortage at the official and parallel forex markets.

Travelex and First Bank of Nigeria Limited commenced the sale of forex to Bureau De Change operators about two months ago after getting the Central Bank of Nigeria’s approval.

Some forex traders, however, said the scheme had failed to ease the biting dollar shortage in the country.

“What we get from Travelex is not sufficient,” one trader said, referring to the demand in the market.

The President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, said the sale of dollars to the BDC operators had yet to cut across the country.

This, he said, was partly responsible for the grueling dollar scarcity.

“There are still logistics problems in selling forex to all the BDC operators; this is what is causing this relative scarcity,” he said.

The CBN had asked the International Money Transfer Operators to sell dollars directly to the BDC operators to boost liquidity and narrow the gulf between the parallel and official market rates.

Dollar shortages have caused many companies to halt operations and lay off workers, compounding an economic crisis exacerbated by the fall in global prices of oil, which accounts for over 70 per cent of Nigeria’s budget revenue.

The CBN has struggled to support the naira as the country’s external reserves continue to fall.  (Punchng.com)

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