The Nigerian Naira is expected to reverse the losses recorded against the US dollar and other foreign currencies last week following the Central Bank of Nigeria intervention on Friday.

The apex bank sold another $350 million in an auction forward contract to further boost market liquidity and complement the $1 million weekly allocations to each of the 21 commercial banks in the country.

Foreign exchange experts have said the local currency will remain steady in coming days as the currency has responded positively to the CBN’s action to close the gap between the official and parallel market rates.

According to Mr. Johnson Chwukwu, the Chief Executive Officer of Cowry Assets Management Limited, “The pressure is beginning to come back. But if the CBN continues with the intervention, the naira may gain this week. But I think the CBN will be cautious on the intervention in order not to compromise the external reserves.”

The local currency had gained about N60 since the CBN introduced the new forex policy to close at N465 on Friday, from a record low of N525 to a US dollar reached on the parallel market.

While at the interbank market, the naira traded at 305.25 to a dollar on Friday, the same level it has traded since August 2016.

However, in order to further ensure end-users have easy access to forex at CBN’s stipulated rates, the Central Bank on Sunday roll out additional directives to all commercial banks across the country, mandating them to open a teller point for all retail FX transactions and ensure access to foreign exchange by their customers without any hindrance.

Also, the apex bank directed all banks to have an electronic display board in all their branches, showing rates of all currencies, and Customers are advised by the apex bank to insist on processing their FX transactions based on the displayed rates.

Similarly, banks are mandated to process and meet the demand for travel allowances by end-users within 24 hours of such application as long as the basic requirements are met. Equally, banks are mandated to process and meet demands for school fees and medical bills within 48 hours of such application.

http://investorsking.com/naira-to-reverse-losses-this-week-banks-to-process-fx-transactions-within-24hrs/

Noted.

OK..that's not to bad

This is a temporary solution, no smart investor will want to play these kind of fooolish game. You can't give 25% demands and expect magic. Demand of dollar is higher than supply. You will have to balance it first befor you talk about stability. Where are the gurus? Plz come and correct me

OK

its an okay measure, you tried.
but more emphassy should be placed on generating more fx.

for example if the tourism sector is developed it can provide good source of fx.

but vices such as corruption, looting and yahooyahoo and insecurity have to be drastically reduced (these things have a way of reducing the value of the naira).

donsteady:
This is a temporary solution, no smart investor will want to play these kind of fooolish game. You can't give 25% demands and expect magic. Demand of dollar is higher than supply. You will have to balance it first befor you talk about stability. Where are the gurus? Plz come and correct me

How are you sure its 25% of total fx demands the CBN is meeting? If it's so, the Naira won't have gained this much, currency hoarders, speculators have a lot of dollars in hand and now in trouble with the CBN actions. If they fail to start bringing it out this week and cut their losses I am sorry, it will get worse as CBN seems to just be getting started. CBN wants to force them to sell or face forex glut that will worsen their situation.

So genuine local and foreign investors will jump in, except the ones planning to profit from the capital market using weak forex rates to aid profitability at the expense of the economy/masses. Nigeria is not buying that as we are not running a free floated currency policy.

OP, The 24hrs condition is for PTA/ BTA, while school fees/Medical is 48hrs... However there is a limit to what the "pump" action will achieve....subsidizing foreign travel in off peak season is mere band aid, summer is when people travel, september is when fees are paid, This FG/CBN fim ending we all know.

I am no economists but even i know quite well this russian roulette won't end well.....

P.S... Are manufacturers getting adequate forex NOW ?

Osinbajo My man ride on Sir.....

Most criminals hoarding dollars will surely rush to sell this week

modath:

OP, The 24hrs condition is for PTA/ BTA, while school fees/Medical is 48hrs... However there is a limit to what the "pump" action will achieve....subsidizing foreign travel in off peak season is mere band aid, summer is when people travel, september is when fees are paid, This FG/CBN fim ending we all know.

I am no economists but even i know quite well this russian roulette won't end well.....

P.S... Are manufacturers getting adequate forex?

Similarly, banks are mandated to process and meet the demand for travel allowances by end-users within 24 hours of such application as long as the basic requirements are met. Equally, banks are mandated to process and meet demands for school fees and medical bills within 48 hours of such application.

Over $1.1 billion have been spent on manufacturing sector and others to clear backlogs.

Truth234:


How are you sure its 25% of total fx demands is the CBN meeting? If it so, the Naira won't have gained this much, currency hoarders, speculators have a lot of dollars in hand and now in trouble with the CBN actions. If they fail to start bringing it out this week and cut their losses I am sorry, it will get worse as CBN seems to just be getting started.

So genuine local and foreign investors will jump on it, except the ones planning to profit from the capital market at the expense of the economy. Nigeria is not buying that as we are not running a free floated currency policy.

If CBN can really meet demands as they are posturing, all banks would have enabled their cards to work on international platforms... Only Access & GT allow a $100 monthly limit as we speak so what are we saying exactly.

Dear FG/CBN informants, Please inform them to allow our cards work on online platforms & @ the 320 range of GT & Access, then we can pay to watch this "currency battle" movie...

It's still very obvious they are in desperate mode...

modath:


If CBN can really meet demands as they are posturing, all banks would have enabled their cards to work on international platforms... Only Access & GT allow a $100 monthly limit as we speak so what are we saying exactly.

Dear FG/CBN informants, Please inform them to allow our cards work on online platforms & @ the 320 range of GT & Access, then we can pay to watch this "currency battle" movie...

It's still very obvious they are in desperate mode...

The issue is not the CBN but commercial banks, these banks have foreign financial obligations they are meeting and that was one of the reasons they fought CBN to allow them use their forex as they deem fit instead of the 60:40 policy instituted by the CBN to aid the manufacturing sector.

Truth234:


The issue is not the CBN but commercial banks, these banks have foreign financial obligations they are meeting and that was one of the reasons they fought CBN to allow them use their forex as they deem fit instead of the 60:40 policy instituted by the CBN to aid the manufacturing sector.

On whose behalf are the banks meeting the obligations? Who are the owners of the foreign financial obligations?

Truth234:


The issue is not the CBN but commercial banks, these banks have foreign financial obligations they are meeting and that was one of the reasons they fought CBN to allow them use their forex as they deem fit instead of the 60:40 policy instituted by the CBN to aid the manufacturing sector.

Me I'm not going to do a long back & forth... Analysts (90% correct) i respect have already dissected this move & so far, their analysis have been on point... in just one week , the rates started creeping back up without breaking the 420 barrier... They can keep pumping till reserves dry up..

Fundamental issues of LACKLUSTRE OIL PRICES, horrible fiscal policies, import dependency, mono economy, infrastructural damage ,extravagant desires for foreign made goods won't disaapear in a jiffy...

I repeat, until cards are enabled & CBN sustains this till summer (peak travel period) & september foreifn school fees rush, then they can be taken serious, now it's still film trick...

I love my country & want her progress, peace and prosperity everyday but I'm an optimistic REALIST...

*mic drop*

donsteady:
This is a temporary solution, no smart investor will want to play these kind of fooolish game. You can't give 25% demands and expect magic. Demand of dollar is higher than supply. You will have to balance it first befor you talk about stability. Where are the gurus? Plz come and correct me

Typical naija.

Always find fault

Activa:


On whose behalf are the banks meeting the obligations? Who are the owners of the foreign financial obligations?

lol... BDC obligations maybe.

Mynd44 still wait $ go still crash....Neva pay for that oversea transaction yet.

modath:
OP, The 24hrs condition is for PTA/ BTA, while school fees/Medical is 48hrs... However there is a limit to what the "pump" action will achieve....subsidizing foreign travel in off peak season is mere band aid, summer is when people travel, september is when fees are paid, This FG/CBN fim ending we all know.

I am no economists but even i know quite well this russian roulette won't end well.....

P.S... Are manufacturers getting adequate forex NOW ?

modath:


Me I'm not going to do a long back & forth... Analysts (90% correct) i respect have already dissected this move & so far, their analysis have been on point... in just one week , the rates started creeping back up without breaking the 420 barrier... They can keep pumping till reserves dry up..

Fundamental issues of LACKLUSTRE OIL PRICES, horrible fiscal policies, import dependency, mono economy, infrastructural damage ,extravagant desires for foreign made goods won't disaapear in a jiffy...

I repeat, until cards are enabled & CBN sustains this till summer (peak travel period) & september foreifn school fees rush, then they can be taken serious, now it's still film trick...

I love my country & want her progress, peace and prosperity everyday but I'm an optimistic REALIST...

*mic drop*

In Nov. I was contacted by a 99.3 Nigeria info fm presenter to give my projection on oil cut, I projected $55 a barrel against most Nigerian analysts of $45 and explained if we are able to up production after OPEC consensus is reached that the Naira will gradually appreciate against the dollar. Not only was I right, but beats NLNG general projection.

Again, you based your submission mainly on lacklustre oil prices, this is not true after OPEC reach consensus and Saudi has pledged to cut production again in September per adventure shale increase production. This was after OPEC report showed over 90% adherence to November 30 pledge.

On the issue of import, it will take time for diversification strategy to fully crystallise. The truth is all you mentioned except the oil has no direct effect on the current forex policy.

Also, remember that most of this analysts have vested interest, imagine Henry Boyo predicting 1000/$. Lets allow CBN. Happy New week modath

Hope so.
have you checked my signature?

Wash

.

If you are in the US or have relatives in the US trying to send money to naija, I will exchange the funds at 400/$, simply deposit into my US bank account and receive instant funding into your Nigerian account. Don't bother with western Union and co, they exchange at 375/$ with fees and the exchange rate drops to around 345/$.

See my contact below.

Hmmm
God bless Nigeria!

Happy Independence day to Ghana.

This kind of action I expect from the his govt, not the blame game

Abeg who know Buhari, tell am say make him stay there till 2019 abeg

modath:


If CBN can really meet demands as they are posturing, all banks would have enabled their cards to work on international platforms... Only Access & GT allow a $100 monthly limit as we speak so what are we saying exactly.

Dear FG/CBN informants, Please inform them to allow our cards work on online platforms & @ the 320 range of GT & Access, then we can pay to watch this "currency battle" movie...

It's still very obvious they are in desperate mode...

This is one of the measure that will definitely force speculators perhaps those who hoard dollars to quickly offset it but their reason for not enabling our master cards to perform such aim still beats my imagination. Even setting a $100 limit transaction is not healthy.

Profligacy

I just pray miracle happens.. Cos if this hullabalo backfires... getting off it will be impossible.

Clone2020:
If you are in the US or have relatives in the US trying to send money to naija, I will exchange the funds at 400/$, simply deposit into my US bank account and receive instant funding into your Nigerian account. Don't bother with western Union and co, they exchange at 375/$ with fees and the exchange rate drops to around 345/$.

See my contact below.

Do u know how much pounds is?

9ja4show:


Do u know how much pounds is?

Oh no

Please oo, is this word "dollar" a new word for "dullard", or it has been there before now? I need to be informed, please...