₦airaland Forum

Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 2,333,203 members, 5,160,425 topics. Date: Wednesday, 18 September 2019 at 08:57 PM

FOREX : Dealers Unable To Pick $100m Offered By CBN - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / FOREX : Dealers Unable To Pick $100m Offered By CBN (24423 Views)

Boeing Gives $100m To Help 737 Max Crash Families / Yuan Sale By CBN Excites Traders / Development Bank Of Nigeria Granted Operational Licence By CBN (2) (3) (4)

(1) (2) (3) (4) (5) (Reply) (Go Down)

FOREX : Dealers Unable To Pick $100m Offered By CBN by Rocketmaster(f): 10:47pm On Mar 24, 2017
The Central Bank of Nigeria (CBN) on Friday offered fresh 100 million dollars at the interbank market to meet customers’ demands.
However, the News Agency of Nigeria reports that the dealers were only able to pick about 81.35 million dollars.
The Acting Director, Corporate Communications, CBN, Mr Isaac Okorafor, in a statement, attributed the inability of authorised dealers to pick up the entire offer of the CBN to increasing dollar supply.
He said another reason was the current sense of apprehension among dealers who anticipate a further crash in the rate of the dollar.
He reiterated the determination of the Bank to sustain its current interventions in the market.
“Those who doubt the capacity of the Bank to sustain the intervention in the FOREX market are beginning to have a change of mind,” he said.
Meanwhile, the Naira has sustained its optimistic ride against major currencies, especially the United States dollar, which exchanged at about N380 in Abuja, and N385 to N390 in Lagos market.
At the Bureau De Change (BDC) window, the Naira was sold at N399 to the dollar, while the pound sterling and the Euro were sold at N500 and N400.
The Nigerian currency appreciated at the interbank market, closing at N307 to the dollar.
Traders believe that the continued intervention by the CBN have triggered further apprehension among speculators, who anticipate further losses given the continued crash of the dollar.
Some BDCs in Abuja stopped selling dollar due to the current price in order to curtail further losses, but they were opened to customers willing to sell at N370 to a dollar.
An Abuja-based BDC operator, said besides the dollar sales by the CBN, steady supply have been coming in from individuals who had once hoarded the currency for whatever purpose.
The President of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, said that appreciation of the Naira, especially in Abuja though good, was causing panic among BDCs.




http://9jamoment.com/mother-and-daughter-burnt-alive-for-witchcraft-in-kenya-photos/

2 Likes 1 Share

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by HAH: 11:36pm On Mar 24, 2017
Is time for CBN to converge all rates in same place an equilibrium price should determined this is because the parallel market rate of 380 is almost the rate at which bank sell PTA which 375 and the CBN should reduce the spread between interbank and selling rate by banks the present 20% is very high infact the highest in the world at best it should be 5% just imagine the CBN give them dollars at 315 and they sell at 375, now if parallel market will sell at 375 too no one will go to bank bank buy because there is limit, trail or much documentation unless the banks drop their rate too thereby competing with the BDC for customers which will lead to drop in price, during the soludo and even sanusi era spread by BDC are hardly 5% sometimes just 2%.


Those saying we should float the naira should have a rethink, most nations defend their currency, floating your currency is like opening up the borders of your country no customs, no immigration, no visa, no duty everyone and everything enters at will. Assuming Nigeria is a major multi product exporting country floating may be ok, but as it is our major export is oil which is very volatile, believe me if we float speculators will run this country down dollar will be N1000 in no time.

@$50 per barrel Nigeria earn about $110M daily let's say 40% goes to the JV that means we will be left with $66m daily, I recommend a 50-50 approach between reserve and injection into the economy that means every week about $220M will be injected and $220M will be saved in the reserves. I believe the present intervention by CBN is necessary and very sustainable if there is the political will.

91 Likes 7 Shares

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by lifestyle1(m): 7:09am On Mar 25, 2017
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by martineverest(m): 7:09am On Mar 25, 2017
nemesis and karma are dealing with these dealers.they made alot at d xpense of nigerians and now the are losing more than ever.

The dealers bought dollars at higher price,only for dollars to fall below xpectation.hoarder are releasing theirs,but dealers dont want to buy from dem,except at a very low price.while buyers are now the kings with different choices

29 Likes 2 Shares

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Pearly255(f): 7:09am On Mar 25, 2017
OK!
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by littlewonders: 7:10am On Mar 25, 2017
I don't posses much knowledge on how this forex stuff works wanted allowing the girl above me explain But her case is worst even the guy below me makes it even harder.

Let me go watch tom and Jerry cos this entirely won't plunge the dollar story.

33 Likes 1 Share

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by abbaapple: 7:10am On Mar 25, 2017
Taaaaaa!
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by jbkomo(m): 7:10am On Mar 25, 2017
Slow and steady wins d race. Surely we will get dia.

2 Likes 1 Share

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by HRich(m): 7:10am On Mar 25, 2017
OK. maybe they need this 3MYVFDS

3 Likes 1 Share

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Nobody: 7:11am On Mar 25, 2017
Naira has sustained its optimistic ride against major currencies, especially the United States dollar, which exchanged at about N380 in Abuja, and N385 to N390 in Lagos market. So what do we do now.. Fry beans?

3 Likes

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Jimmyo3(m): 7:12am On Mar 25, 2017
Yoruba: Shout on phone
Hausa: Dial wrong number with the phone
Igbo: Lie on phone
Calabar: Steal the phone

13 Likes

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Badgers14: 7:12am On Mar 25, 2017
It is a shame that with all the brains we have in this country this is where we found our selves today.

In my opinion, CBN pumping dollars in the economy is a rubbish idea, voodoo economics.. Whose idea was it anyways It is a shame.

Before you start quoting me, let's reason this,

1. People talk about Forex this and that, Is Nigeria the only country that its citizens operate FOREX?

Why aren't all other countries currency down the toilet as well?

2. People say because we import more and export less. Yes that might be one of the reasons but let me tell you sth. Do you know almost everything sold in the U.S is imported? Yes I kid you not, Iphone is designed in California but produced in China.

The U.S import Bananas, Plantains, Pineapple, coconut shocked Yes.. People living in the U.S, check the label on the bananas at Walmart, Kroeger or which ever grocery store you go.. The label would read most times, From Honduras, Guatemala, Costa Rica or some other south American country.

Also, the U.S import tooth picks, I kid you not, I was surprised when i purchased one and the label reads made in China.

You could disagree with me if you like but the main issue we have is over dependency on foreign currency.

There are some law offices that charge their clients in dollars, some government officials/ contractors are paid in USD.

Even some business, schools etc. Accept only USD as a form of payment.

Why would USD be accepted as a legal tender in Nigeria You couldn't use GBP in the U.S.

Likewise, you can't use USD in GB.

The implication of some business using USD as a legal tender is that, those businesses that accept Dollars from their clients, they pay their employees in Naira and make their office purchases in Naira.

They are indirectly running a BDC. Recall, when clients and the government go and source dollars from banks to pay those busineses , contractors and personnels. Then those business pay their employees in Naira and make their purchase in Naira. At a point banks will run out of dollars and what happens?

Economics 101, scarcity of dollars.. Then those dollar businesses will start selling their stash at a higher rate.

Does anyone recall the NNPC guy that they found $10m cash in his house? How much was recovered from those judges Diezani Plus lots of others we don't know about.

Have we ever asked ourselves, CBN have pumped almost $1bn into the market since this year and still pumping where is the money going

16 Likes 5 Shares

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by elampiro(m): 7:12am On Mar 25, 2017
HAH:
Is time for CBN to converge all rates in same place an equilibrium price should determined this is because the parallel market rate of 380 is almost the rate at which bank sell PTA which 375 and the CBN should reduce the spread between interbank and selling rate by banks the present 20% is very high infact the highest in the world at best it should be 5% just imagine the CBN give them dollars at 315 and they sell at 375, now if parallel market will sell at 375 too no one will go to bank bank buy because there is limit, trail or much documentation unless the ban drop their rate

Well said

2 Likes 1 Share

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by chinoify: 7:13am On Mar 25, 2017
Dollar sales that has so many conditions attached, is that one dollar sales

scam
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by mailingdgreat: 7:13am On Mar 25, 2017
All of una wey go bury dollar inside soakaway, I hope una still leave am dere cos e go rotten inside dere begin smell.

1 Like 2 Shares

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Nusaf: 7:14am On Mar 25, 2017
Enemies of state and their beer parlour analyses.

23 Likes 1 Share

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Repairnigeria(m): 7:14am On Mar 25, 2017
no wayo
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by okosodo: 7:14am On Mar 25, 2017
All i can say as a forex trader is that when this government gets tired of using the money gained from making nigerians suffer, then the dollar will still overrun the naira. Liquidity is unchanged , still at 85%.

5 Likes 1 Share

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by toluine56(m): 7:14am On Mar 25, 2017
Great news.
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Nobody: 7:15am On Mar 25, 2017
These Northerners are the major reason dollar is over priced in nigeria,because we are not the only import base economy in d world

4 Likes 1 Share

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by SweetJoystick(m): 7:16am On Mar 25, 2017
Bank rate for PTA should drop as well
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Donselekta(m): 7:17am On Mar 25, 2017
I'm loving this present trend of dollars crash. I pray for a further crash, we can't afford to continue with how the BDC has held us hostage for this long. God bless Nigeria.

3 Likes 2 Shares

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Lakebeyin(m): 7:17am On Mar 25, 2017
Eiyah! Abeg when wil d price of comodities come down?

3 Likes

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by LastSurvivor11: 7:19am On Mar 25, 2017
Going by what this government met on ground, they have done absolutely nothing..

11 Likes

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by dexterinc2003: 7:19am On Mar 25, 2017
This was a good measure done a little too late, the prices might eventually rest between 350-360. Just imagining how good we would have had it if this CBN intervention had come in earlier (around 400) ,not when it got to 520.

3 Likes 1 Share

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by hobermener: 7:20am On Mar 25, 2017
The smart ones will increase their stock of dollars, i repeat, the smart ones will increase their stock of dollars!!!!
Funelling millions of dollars into the forex maket on a daily basis, is a stupid short term solution to a longer term problem, which i assume is just a calculated move to score cheap political points.the price of Oil, the major foreign exchange earner is still very low, with opec struggling to stick with its production quota, any sensible human will evisage a further drop in oil prices, as the world moves to cleaner energy, and opec member nations continue to ignore the organizations agreements. Though slow, a long term policy of import substitution and agressive exportation through economic diversification would ultimately lead to a precipitous decline in the dollar price, but what do we have, a government still spending billions on oil prospecting, foreign direct investment at an all time low, and one of the worst economic contraction in recent times, yet some fools still cheer this fire brigade method of pumping dollars into the market for school fee payments and tourism, things that only end up driving exports higher, further complicating balance of payment problems.
Producers who need forex the most do not get them, these people are supposed to be top priority, expecially the agricultural sector and the mining sector, agressive importation of producer goods is the top priority of any country that seeks to curb foreign exchange problems in the long run, these producers should have government acting as payment agents(in dollars) after these purchases have been verified by the cbn, while these producers pay in naira at subsidized rates, but what do we have, a government subsidizing payments for pilgrimage and other bullshït of little to no economic significance.
Call me a pessimist, that's your opinion, buth when the inevitable consequence of this stupid move raises its ugly head, there will be no one to save the naira!!!!!

28 Likes 5 Shares

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by LastSurvivor11: 7:21am On Mar 25, 2017
Nusaf:
Enemies of state and their beer parlour analyses.

Don't be daft man..
Was is enemy of the state that made policies that increased the price of dollar and other commodities in the 1st place.
The state "government" is its own very enemy..

2 Likes

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by wristbangle(m): 7:21am On Mar 25, 2017
HAH:
Is time for CBN to converge all rates in same place an equilibrium price should determined this is because the parallel market rate of 380 is almost the rate at which bank sell PTA which 375 and the CBN should reduce the spread between interbank and selling rate by banks the present 20% is very high infact the highest in the world at best it should be 5% just imagine the CBN give them dollars at 315 and they sell at 375, now if parallel market will sell at 375 too no one will go to bank bank buy because there is limit, trail or much documentation unless the ban drop their rate

Am telling you. Why not reduce the rate to 10 percent since the parallel market is catching up already with bank selling price. Even the article said BDC are willing to buy @ N370 from speculators which is N5 below the approved N375 selling price @ banks.

Another thing that drew my attention on the article is BDC are willing to buy but don't want to sell in order not to incur further loss. The question is where do they get the liquid to purchase these dollars except if they are into big business sha probably through commodity trading.

To be honest, if these dollars used in defending naira are used for infrastructural development such as power, road, housing and water projects, the country will attain it's projection in a short run but with this current CBN intervention, it's going to take a very long time as development will be slowed down.

3 Likes

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Nusaf: 7:21am On Mar 25, 2017

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by drololaaof: 7:22am On Mar 25, 2017
When the BDC have been making gain nearly hour by hour whom do they tell,.they should they were making mockery of the PMB government then.They should shut their mouth .God will help Nigeria out of exchange rate palaver

2 Likes

Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by drololaaof: 7:23am On Mar 25, 2017
When the BDC have been making gain nearly hour by hour whom do they tell,.they were making mockery of the PMB government then.They should shut their mouth .God will help Nigeria out of exchange rate palaver

5 Likes

(1) (2) (3) (4) (5) (Reply)

Rule Your World On How To Make Books/you Can Do It Yourself / Using Mastercards Issued By Nigerian Banks Online. Issues!? / Throwback Photo Of Nana And Femi Otedola

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2019 Oluwaseun Osewa. All rights reserved. See How To Advertise. 120
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.