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Naira Depreciates As $697m Forwards Mature This Week - Business - Nairaland

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Naira Depreciates Marginally Against Dollar / CBN Offers $367m For Forex Forwards / Naira Depreciates To N355/$ (2) (3) (4)

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Naira Depreciates As $697m Forwards Mature This Week by johntaiwo123(m): 11:01am On Jul 18, 2016

•Interbank interest rate hit 22%
•We don’t run any business — AMCON


By Babajide Komolafe

The naira depreciated in all the segments of the foreign exchange market last week due to shortage of dollars. Meanwhile the interbank foreign exchange market will experience the maturity of $697 million one-month forwards contract sold by the CBN on Monday June 27th 2016. Last week the naira depreciated in the interbank spot market by Seven percent to N283.37 per dollar from N282.02 per dollar the previous week.  The depreciation, which was in sharp contrast to the stability of the previous week, was attributed to shortage of supply into the market.

This led to excess demand which spilled over to the Bureaux de change (BDC)   and parallel market segment. As a result, the naira depreciated at the BDC and parallel market segments by 2.9 percent and 3.13 percent to N355 and N363 per dollar respectively. Analysts at Cowry Assets Management Company, a Lagos based investment firm, were of the opinion that the naira depreciate further this week due to the impact of the settlement of the $697 million forwards which would mature this week.

“This week we anticipate increased upward pressure on the foreign exchange rate as the apex bank prepares to settle its obligations on its 1-month (July 2016) tenor futures contract entered on Monday, 27 June 2016 at the rate of N279 per dollar. Analysts at Afrinvest however stated, “The fulfilment of this commitment is expected to stoke investors’ confidence in the operations of the interbank market going forward.” Meanwhile, the new foreign exchange rate regime received a major boost last week, with the CBN and Stanbic IBTC sealed a $60 million Naira-Settled Futures at N210 per dollar with 10 months tenor ending on April 26th, 2016.

Interbank interest rate hit 22%

Interbank interest rates rose to double digits last week closing above 22 percent due to scarcity of funds occasioned by treasury bills sales by the CBN and sale of FGN Bonds by the Debt Management Office (DMO). Vanguard’s  investigations reveal that interest rate on Overnight lending rose by 13.4 percent to 22.8 percent, while interest rate on Colateralised lending or Open Buy Back (OBB) also rose to by 11.8 percent to 20.8 percent.

According to Afrinvest analysts, “Next week, we expect money market rates to remain in the double digits. There is a net T-bills maturity of N128.0bn and a scheduled rollover of the same amount expected next Thursday. We expect the auction to be oversubscribed as investors with unsuccessful bids at Wednesday’s DMO primary market auction redirect their attention to the T-bills auction considering the high stop rates at the previous auction. Thus, we think the Apex Bank may allot more than the offered amount.”

We don’t run any business-AMCON

Meanwhile, Asset Management Corporation of Nigeria (AMCON) said that it does not run any business has been speculated in some segment of the public. A statement from the Corporate Communications Department of the Corporation, which restated that AMCON’s intervention in the country actually prevented the collapse of so many businesses, maintained that AMCON is going about its mandate for which it was created by the federal government in 2010 to manage the huge Non Performing Loans (NPLs) in the banking sector. AMCON has not in any way abdicated that assignment to ‘run businesses’ as perceived by some people.

“AMCON has never and will not run any business. But as facilitators, we encourage competent professionals to manage businesses. So it is important we correct this wrong perception in some quarters,” the statement added. In furtherance of the Corporation’s responsibility of acquiring Eligible Bank Assets (EBAs) and putting them to economic use in a profitable manner, AMCON, the statement stated is in receivership of about 50 businesses and more than 180 businesses under enforcement. According to the Corporation, these interventions have saved so many businesses from going under, meaning that AMCON’s involvements is in order and therefore cannot be faulted.”

Source: http://www.vanguardngr.com/2016/07/naira-depreciates-697m-forwards-mature-week/

Re: Naira Depreciates As $697m Forwards Mature This Week by veekid(m): 1:03pm On Jul 18, 2016
This kinda news will never cease to exist so far buhari is still the president

48 Likes 1 Share

Re: Naira Depreciates As $697m Forwards Mature This Week by emerged01(m): 1:05pm On Jul 18, 2016
Frontpage without single comment

3 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by Nobody: 1:05pm On Jul 18, 2016
I give up! cry

11 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by Victorakats(m): 1:05pm On Jul 18, 2016
Patiently waiting for APC e-warriors to educate me on what's the prospects of our economy and what the government is doing or has done to checkmate the current economic climate.

18 Likes 1 Share

Re: Naira Depreciates As $697m Forwards Mature This Week by neoguru7: 1:05pm On Jul 18, 2016
.

26 Likes 2 Shares

Re: Naira Depreciates As $697m Forwards Mature This Week by fearlessigboman(m): 1:06pm On Jul 18, 2016
There is nothing left to say.

6 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by worlexy(m): 1:07pm On Jul 18, 2016
A Yoruba adage says if you should leave a mad man to do whatever he likes with the corpse of his dead mother, he may decide to roast and eat the body(rather than burying her)

Same way if we allow Buhari to continue showing us how clueless and illiterate he is in handling the affairs of our great nation, he may turn our economy to that of Zimbabwe.

Oh Lord of mercy come and deliver us from this curse Zombies brought upon us. Come and visit our great nation. Hear the cries of the hungry and the poor Nigerians that are looking up to you this moment. Don't allow Buhari to destroy us totally. Buhari is a curse to this nation angry

48 Likes 2 Shares

Re: Naira Depreciates As $697m Forwards Mature This Week by lawal28c: 1:07pm On Jul 18, 2016
hmmmmmmm diz is serious

3 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by AroOkigbo(m): 1:07pm On Jul 18, 2016
Dollars, abeg, for the sake of the ordinary Nigerians, pity the naira. ..you hear?
e do!!

14 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by olive2000: 1:07pm On Jul 18, 2016
When will I hear good news about Naira and Dollar issues undecided

4 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by osahonmk(m): 1:07pm On Jul 18, 2016
Hmmm.... things are really getting out of hand.... Due to the stubbornness of Buhari... plus his lack of good economics skills... Chai

27 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by sunnyb0b0(m): 1:08pm On Jul 18, 2016
veekid:
This kinda news will never cease to exist so far buhari is still the president

I got nothing to add to what you've just said.


Maybe Omenka, Beremx and Gbawe have something on the contrary to say....

22 Likes 2 Shares

Re: Naira Depreciates As $697m Forwards Mature This Week by lawal28c: 1:08pm On Jul 18, 2016
[quote author=neoguru7 post=47661775]Until the zoo falls[/quote if the zoo no fall use ur bulldozer bring am dam

2 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by IMASTEX: 1:09pm On Jul 18, 2016
the economy is going

2 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by Nobody: 1:09pm On Jul 18, 2016
.

12 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by theripper3: 1:10pm On Jul 18, 2016
I just hope customers who had been booked for one month forward contract on their LC and BC's will get them established or else na anoda rat race o cuz customer's with lengthier forward contracts are in soup.

5 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by Nobody: 1:10pm On Jul 18, 2016
olive2000:
When will I hear good news about [s]Naira and Dollar issues[\s] undecided
Nigeria
Lol
Re: Naira Depreciates As $697m Forwards Mature This Week by MissShakara: 1:11pm On Jul 18, 2016
Ftp
Re: Naira Depreciates As $697m Forwards Mature This Week by yang(m): 1:11pm On Jul 18, 2016
The zoo must fall

1 Like

Re: Naira Depreciates As $697m Forwards Mature This Week by 400billionman: 1:12pm On Jul 18, 2016
My children, whatsoever you do in life, avoid illiteracy..

21 Likes 2 Shares

Re: Naira Depreciates As $697m Forwards Mature This Week by tafrica(m): 1:13pm On Jul 18, 2016
While inflation has just risen to 16.5%, Naira keeps dropping. What do we need to keep Naira stable, WE hailed china swap deal, claiming it would help Naira, we recently cheered CBN's decision to float Naira, yet we haven't seen Naira rising. Whateven GEJ's or GMB's omen that saw Naira appreciating, light improving etc when Buhari just took over should be brought back.

Who will stop ever widening parallel lines between Naira and dollar? Seems not Buhari, baba is playing raffle draw with our economy

15 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by fr3do(m): 1:14pm On Jul 18, 2016
Somebody sai baba
somebody sai baba

4 Likes 3 Shares

Re: Naira Depreciates As $697m Forwards Mature This Week by uchwar1: 1:15pm On Jul 18, 2016
I love Buhari nke udo okoro

2 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by 400billionman: 1:16pm On Jul 18, 2016
fr3do:
Somebody sai baba
somebody sai baba

Baba baba baba baba baba mi loke.

Baba !

Chai..

14 Likes 1 Share

Re: Naira Depreciates As $697m Forwards Mature This Week by idupaul: 1:16pm On Jul 18, 2016
It's expected because up till now the economics of our economy is being driven by a man called Buhari who lacks vision and foresight in any capacity

15 Likes 2 Shares

Re: Naira Depreciates As $697m Forwards Mature This Week by DozieInc(m): 1:16pm On Jul 18, 2016
isaac Newton theory: Naira free falling since May 29/2015.

8 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by Temple1288(m): 1:18pm On Jul 18, 2016
Hahahahahahahhah!


It seems Nigeria crumbling.

2 Likes

Re: Naira Depreciates As $697m Forwards Mature This Week by 400billionman: 1:19pm On Jul 18, 2016
Infact i blame Jonathan.. grin

5 Likes 1 Share

Re: Naira Depreciates As $697m Forwards Mature This Week by Nobody: 1:21pm On Jul 18, 2016
400billionman:


Baba baba baba baba baba miloke.

Baba !

Chai BUHARI
Re: Naira Depreciates As $697m Forwards Mature This Week by 400billionman: 1:25pm On Jul 18, 2016
sunnyb0b0:


I got nothing to add to what you've just said.


Maybe Omenka, Beremx and Gbawe have something on the contrary to say....

K

" It is only PDP people that are complaining.."

5 Likes

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