Banking and Finance

CBN Says Multiple FX Rates Eliminated ‘Frivolous’ Demand

Nigeria's central bank has eliminated "frivolous demand" for foreign currency with a series of measures introduced recently, its spokesman said on Thursday, according to Reuters report.

Isaac Okorafor said the bank had introduced multiple exchange rates to improve liquidity and allow investors to trade their own dollars at a more market-determined rate.

Naira's New Investors Rate Eases for Second Day

The value of Nigeria's latest naira exchange rate -- this one for portfolio investors -- eased for a second day on Wednesday despite the central bank supplying $25 million to boost liquidity.

The naira was quoted at 378.54 against the dollar on the new foreign exchange trading window introduced by the central bank for investors, data from market regulator FMDQ OTC Securities Exchange showed, according to Reuters report.

Economic Recovery Growth Plan: Osinbajo Seeks Banking Sector’s Support

Vice President Yemi Osinbajo on Tuesday urged the banking sector to support the country’s Economic Recovery Growth Plan (ERGP) to enable it achieve 7 per cent annual growth forecast by 2020, the News Agency of Nigeria reports.

Osinbajo made the call at the 22nd World Conference of Banking Institutes (WCBI) hosted by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos –with the theme: “Rethink the future of Banking and Finance and Life Long Learning.’’

Naira Quoted 18% Weaker at Investors' FX Window

Nigeria naira was quoted 18.3 percent weaker for portfolio investors on Tuesday compared with the interbank rate, a day after the central bank said it would allow investors to trade the currency at market determined rates.

The naira was quoted at 374.25 per dollar on the new foreign exchange trading window introduced by the central bank on Monday for investors, data on market regulator FMDQ OTC Securities Exchange showed.

The naira was quoted at 305.95 to the dollar on the spot interbank market and 385 on the black market.

Central Bank Introduces FX Trading Window for Investors

Nigeria's central bank will now allow investors to engage in foreign exchange trading at rates the buyers and sellers set, a move it hopes will increase the amount of dollars available in Africa's biggest economy.

People or businesses who need dollars to repay loans, pay dividends, repatriate capital or settle trade-related obligations will be eligible for the new trading system, according to central bank circular seen by Reuters on Monday.

CBN to Sell $150m at Currency Forward Sale

Nigeria's central bank offered $150 million in currency forwards at an auction on Monday, it said in a statement, part of its efforts to narrow the spread between official and black market exchange rates and improve foreign exchange liquidity.

Traders, citing a notice from the central bank, said settlement will be between one week and 45 days. The sale will be via a wholesale auction to meet forex demand from businesses.

Interbank Rate Rises as Banks Pay for Dollar Purchases

Nigeria's interbank lending rate climbed by around 20 percentage points on Friday after the central bank's sale of dollar forwards to offset a backlog of forex obligations drained cash from the money market.

The overnight lending rate stood at 50 percent against 29.33 percent the previous day because commercial lenders scrambled for cash on Friday to pay for dollar purchase at a central bank foreign exchange intervention auction targeting certain sectors.

Cashless Policy: CBN Suspends Charges on Large Withdrawals

The Central Bank of Nigeria (CBN) has directed Deposit Money Banks to suspend charges on over-the-counter or ATM withdrawals of above N500,000 or deposit of same amount.

The apex bank’s Director, Banking and Payments System Department, Mr Dipo Fatokun, in a circular dated April 20, 2017, said all the charges introduced in February, and meant to take effect from April 1, 2017, have been dropped.

Naira Firms as CBN Boosts Dollar Sale

Nigeria's naira shot firmer on the country's black market on Thursday as traders prepared for the central bank to increase the dollar supply to exchange bureaux to keep the official retail rate higher.

The black market rate strengthened 2.6 percent to 385 naira to the dollar.

The central bank plans to sell $20,000 each to bureaux de change operators on Thursday, the operators' association president, Aminu Gwadabe, told Reuters. It sold $20,000 each earlier this week to boost liquidity.

Nigeria Needs to Tap its Non-Oil Revenues -Adeosun

Nigeria plans to get out of recession by boosting government revenues and cracking down on corruption, Finance Minister Kemi Adeosun said on Thursday, and will also issue more international debt to pay for infrastructure projects, Reuters reports.

The country is in its second year of recession, brought on by lower oil prices, which have slashed government revenues, weakened the currency and caused dollar shortages frustrating business and households.