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CBN guidelines on fx will stabilise Naira – NGO
CBN guidelines on fx will stabilise Naira – NGO
The Independent Media and Policy Initiative (IMPI), says the new policies introduced by the Central Bank of Nigeria (CBN) will help stabilise the Naira in the foreign exchange market.
Mr Niyi Akinsiju, the Chairman of the Non Governmental Organisation (NGO), said this in a statement on Sunday in Abuja.
Akinsiju said that the polices would stem the volatility in the forex market and also sanitise the banking sector.
He said that the new move was a reflection of the commitment of the new CBN management to check the excesses of banks “gaming” the system.
“The prudential guidelines as issued by the CBN, unveils the gaming of the foreign exchange market by Nigeria Deposit Money Banks (DMBs).
“The DMBs hoard the forex they had either borrowed from foreign jurisdictions or raised locally on long term basis and profiteer on the forex holdings.
“They also refuse their customers access to forex while bidding the Naira to depreciate and exploit the market” he said.
He applauded the directive of the apex bank for the DMBs to immediately sell off the foreign currencies they were holding on the long term to zero level.
“It is estimated that between six billion and seven billion dollars is kept by banks in long positions either in cash or locked up in forex swaps deals.
” This truly captures the CBN’s capacity for regulatory oversight,” he said.
Akinsiju said that the new policy would provide incentives for diaspora funds to be channelled into the official market rather than the parallel market.
“The new policy translates to an incentive to International Money Transfer Operators (IMTOs) to redirect forex to the official market rather than the hitherto practice of diversion to the black market.
“This will ultimately, rechannel more diaspora funds to the Nigeria forex market with possible enhancement of forecast liquidity.
“It will also ameliorate demand pressure with subsequent appreciation of the Naira,” he said.
The News Agency of Nigeria (NAN) reports that the CBN had initiatiated a number of policies to halt the free fall of the Naira at the foreign exchange market.
One of such policies was contained in a circular, which mandated the DMBs to ensure that they do not surpass 20 per cent short (holding more foreign currency assets than liabilities).
It asked banks currently exceeding these prescribed limits to make adjustments to their positions to align with the new regulations by Feb. 1.
CBN guidelines on fx will stabilise Naira – NGO
Naira rebounds, gains N28.15 against dollar
The Naira on Tuesday closed the month of April on a good footing as it gained N28.15 at the official market, trading at N1,390.96 to the dollar.
Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that the gain represented a 1.98 per cent appreciation for Naira.
The percentage increase is significant when compared to the previous trading date on Monday, April 29.
The local currency experienced about two weeks steady fall by exchanging at N1,419 to a dollar.
The success story was replicated in the volume of currency traded, as the total daily turnover increased.
The daily turnover stood at 225.36 million dollars on Tuesday up from 147.83 million dollars recorded on Monday.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,450 and N1,200 against the dollar.
Naira rebounds, gains N28.15 against dollar
Naira appreciate, gains further by 1.8% against dollar
The Naira experienced a further appreciation at the official market, trading at N1,382.95 to a dollar on Tuesday.
Data from the official trading platform of the FMDQ revealed that the Naira strengthened by N25.09 or 1.78 per cent, compared to the previous day’s rate of N1,408 against the dollar.
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However, the total turnover increased to $245.58 million on Tuesday, up from $222.15 million recorded on Monday.
Meanwhile, at the Investor’s and Exporters’ (I&E) window, the Naira traded between N1,486 and N1,300 against the dollar.
The reports gathered that the Central Bank of Nigeria(CBN) had, earlier on Tuesday at its 294th Monetary Policy Committee (MPC), raised Monetary Policy Rate (MPR), by 200 basis points from 22.75 per cent to 24.75 per cent.
CBN governor Yemi Cardoso said that was meant to tackle the nation’s rising inflation.
Naira appreciate, gains further by 1.8% against dollar
Petroleum Ministry, NNPC Ltd., others brainstorm on oil, gas development
Retreat
The Ministry of Petroleum Resources as well as its agencies and parastatals are expected to brainstorm on emerging developments in the oil and gas industry, at a sectoral retreat scheduled to hold in Abuja.
Mrs Oluwakemi Ogunmakinwa, Deputy Director, Press and Public Relations, Ministry of Petroleum Resources, said in a statement on Sunday that the retreat would focus on the Ministerial Deliverables (2023-2027) for the oil and gas sector.
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The retreat with the theme: “Building Synergy for Enhanced Development in the Oil and Gas Sector” would hold between March 26 and March 28.
Ogunmakinwa stated that the retreat would also fashion the way forward for the industry as earmarked by President Bola Tinubu.
“In the course of the retreat, heads of agencies under the ministry will be required to make presentations on the mandate, vision and mission of their respective organisations,” she stated.
According to Ogunmakinwa, the Minister of State Petroleum Resources (Oil), Sen. Heineken Lokpobiri and the Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo will be attending the retreat.
The Permanent Secretary, Ministry of Petroleum Resources, Amb. Nicholas Agbo Ella, Directors in the Ministry, as well as the Chief Executive Officers (CEOs) and Directors from the Agencies under the supervision of the Ministry would also be in attendance.
It would be recalled that President Bola Tinubu had the first year Ministerial Retreat with Ministers, Presidential Aides, Permanent Secretaries and top government functionaries from Nov. 1 to Nov. 3, 2023.
The retreat by the president was to chart a path for progress and prosperity of the nation, where he charged the participants to deliver on their mandates for the sake of Nigerians.
Petroleum Ministry, NNPC Ltd., others brainstorm on oil, gas development
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