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5 CBN Circulars That Calmed FX Market - Business - Nairaland

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Again, CBN Intervenes In FX Market With $210m / Naira Gains As CBN Injects $210m Into FX Market / Again, CBN Boosts FX Market Liquidity With $210m (2) (3) (4)

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5 CBN Circulars That Calmed FX Market by FreeStuffsNG: 7:41pm On Feb 11
The Nigerian naira recorded a gain of 4.49 percent against the dollar in seven days of trading driven by the policy measures of the Central Bank of Nigeria (CBN).


The local currency had witnessed persistent depreciation against the US dollar, hitting an all-time low on January 29, 2024, when it traded at N1,348.63 per USD at the official window. Enter the first of five CBN circulars that reversed the tide.

Jan 29 (Circular to Authorised Dealers – Financial Markets Price Transparency)


The CBN’s circular which was released on the 29th of January, led to more transparency and accurate price discovery. This initiative improved transparency of the true level of Naira, depicting unification.

Jan 31 (Letter to Banks – Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks)

Initiated on the 31st of January, the CBN’s letter to banks provided a level-playing field and improved liquidity and this led to the revision of Net Open Position (NOP) which limits the overall foreign currency assets and liabilities.

The directive has since spurred increased activity in the Nigerian Autonomous Foreign Exchange Market (NAFEM) which saw daily market turnover rise from $134.83 million to as high as $854.53 million.

Jan 31 (Removal of Allowable Limit of Exchange Rate Quoted by the International Money Transfer Operator)

In its bid to resuscitate the naira and the economy, the apex bank issued another circular on the 31st of January, boosting diaspora remittances via official channels to Nigeria.


This initiative gave permission to quote exchange rates for Naira payout to beneficiaries based on the prevailing market rates at NAFEM, removing the previous cap of -2.5% to +2.5% of previous day’s closing rate.

This decision by the Cardoso-led CBN is expected to spur increased remittances via IMTOs, stemming the channelling and exchange of foreign currency through the alternative market.

Jan 31 (Reviewed Guidelines of International Money Transfer Services in Nigeria)

The CBN’s directive on the 31st of January offered ease of doing business for IMTOs. The guidelines for international money transfer services were reviewed to reflect the changes in the market and improved ease of doing business which would in turn endure clarity on permissible activities.

Feb 8 (Removal of the Spread on Foreign Exchange Transactions)

On Friday, the CBN removed the spread on foreign exchange transactions at the interbank market. This was disclosed in a circular to all authorised dealers, dated February 8, 2024 and signed by Duke Omolara Omotunde, director, financial markets department of the CBN.

Removal of the cap on spread in the interbank market and restrictions on the sale of interbank proceeds will lead to efficiency in the market-based price discovery system.

This policy by the apex bank will lead to a truly liberalised FX market. Authorised Dealers are now enabled to make binding two-way quotes in NAFEM. The removal of restrictions will spur market activity and reduce information asymmetry.

The Naira, which appreciated on Monday after the FX policy announcement, lost 3.41% of its value against the dollar for the five trading days in the week at the official market.

The FX market ended with the dollar closing at N1,469.97 on Friday from N1,419.86 quoted on Monday, the first trading day of the week.

https://businessday.ng/business-economy/article/the-5-cbn-circulars-that-calmed-fx-market/

6 Likes 1 Share

Re: 5 CBN Circulars That Calmed FX Market by FreeStuffsNG: 7:41pm On Feb 11
The CBN’s circular which was released on the 29th of January, led to more transparency and accurate price discovery. This initiative improved transparency of the true level of Naira, depicting unification.

This is the gradual painfully slow but sure banker that naira will soon be appropriately priced for massive economic development.
God bless Nigeria for ever! Check my signature for free stuffs!

20 Likes 2 Shares

Re: 5 CBN Circulars That Calmed FX Market by VeryWickedMan: 8:04pm On Feb 11
Calmed it to N1,584.32 ~ $1

45 Likes 7 Shares

Re: 5 CBN Circulars That Calmed FX Market by article1: 8:15pm On Feb 11
Let financial experts in the house break this grammar into smaller and understandable English to laymen like us because I didn't understand one single point out of the five points at all. Merci.

12 Likes 1 Share

Re: 5 CBN Circulars That Calmed FX Market by vanbonattel: 8:21pm On Feb 11
#1590 to one $ is calming the markets? grin

When I said these people will rule with only propaganda, people thought I was joking. By next week they will tell you rice was sold at 80k only, a drop from 81k they sold it on January 31, and they will organise media events praise themselves for taking rice up 100%, and dropping it 2% later.

63 Likes 5 Shares

Re: 5 CBN Circulars That Calmed FX Market by franchasofficia: 8:22pm On Feb 11
Sighs
Re: 5 CBN Circulars That Calmed FX Market by EreluRoz: 8:29pm On Feb 11
franchasofficia:
Sighs
Onwa why the sigh when we know hardship no fit ever near your side.

1 Like

Re: 5 CBN Circulars That Calmed FX Market by tommy589(m): 8:36pm On Feb 11
They need to do more in curbing easy laundering by hoarders of stolen naira in buying dollars

2 Likes

Re: 5 CBN Circulars That Calmed FX Market by franchasofficia: 8:37pm On Feb 11
EreluRoz:
Onwa why the sigh when we know hardship no fit ever near your side.
My dear, the tumbling economy is affecting every Nigerian including Dangote. The only people that it's not affecting are those currently in power and their proxies and cronies.


The cost of running my offices have increased astronomically and profit didn't increase.


Epileptic power supply in Nigeria now is affecting my business operations and I am now considering installing solar energy but you need to see the quotes I got for 10kva that we need to operate some of the basic things we need to function as a business angry


Forget, Tinubu has destroyed the little left of Nigeria and you his staunch supporters ought to be tendering apologies to Nigerians and appealing to Tinubu to please tender a resignation and a set a good record for subsequent Presidents

21 Likes 3 Shares

Re: 5 CBN Circulars That Calmed FX Market by vanbonattel: 8:40pm On Feb 11
franchasofficia:
My dear, the tumbling economy is affecting every Nigerian including Dangote. The only people that it's not affecting are those currently in power and their proxies and cronies.


The cost of running my offices have increased astronomically and profit didn't increase.


Epileptic power supply in Nigeria now is affecting my business operations and I am now considering installing solar energy but you need to see the quotes I got for 10kva that we need to operate some of the basic things we need to function as a business angry


Forget, Tinubu has destroyed the little left of Nigeria and you his staunch supporters ought to be tendering apologies to Nigerians and appealing to Tinubu to please tender a resignation and a set a good record for subsequent Presidents

I disagree with you in his resignation, he must complete his tenure. Even if the whole country will be eating grasses like 🐐 goats grin

7 Likes 1 Share

Re: 5 CBN Circulars That Calmed FX Market by EreluRoz: 8:42pm On Feb 11
franchasofficia:
My dear, the tumbling economy is affecting every Nigerian including Dangote. The only people that it's not affecting are those currently in power and their proxies and cronies.


The cost of running my offices have increased astronomically and profit didn't increase.


Epileptic power supply in Nigeria now is affecting my business operations and I am now considering installing solar energy but you need to see the quotes I got for 10kva that we need to operate angry


Forget, Tinubu has destroyed the little left of Nigeria and you his staunch supporters ought to be tendering apologies to Nigerians and appealing to Tinubu to please tender a resignation and a set a good record for subsequent Presidents
Something has to be done fastly, the only solution is revolution.

I supported asiwaju based on his record as Lagos governor and comparing him to others when they were governors too. At this point let's all support the idea of revolution next time and stop making this mistake of recycling these same people.

About your last paragraph, something positive will definitely be done and let's put the country in prayers.

4 Likes 1 Share

Re: 5 CBN Circulars That Calmed FX Market by jmoore(m): 8:44pm On Feb 11
Government of propaganda is destined to fail.

A drug trafficker will destroy Nigeria economy. No amount of propaganda will make it better.

1 Like

Re: 5 CBN Circulars That Calmed FX Market by franchasofficia: 8:45pm On Feb 11
vanbonattel:


I disagree with you in his resignation, he must complete his tenure. Even if the whole country will be eating grasses like 🐐 goats grin
My brother it's beyond jokes honestly.


I never knew government policy would affect me oh until recently because throughout Buhari's maladministration, I was never affected negatively at all, instead it even favored me.


Tinubu regime is gradually returning Nigeria to the dark age; power supply is at all time low in history, insecurity is now something else.


A friend that returned back to Nigeria got kidnapped last month even after he disguised himself by using low grade car. He paid huge money to get out and the trauma is still there.


These two things are areas Tinubu is messing up big time.


Kidnapping now happening in big cities like Abuja, Lagos, etc, ah it's not funny honestly angry

6 Likes 2 Shares

Re: 5 CBN Circulars That Calmed FX Market by naijaboy756: 8:47pm On Feb 11
You guys are making things worse by coming online to write rubbish by way of propaganda

Do you guys live in another planet?

What kind of dumb stuff is this?

13 Likes 2 Shares

Re: 5 CBN Circulars That Calmed FX Market by franchasofficia: 8:51pm On Feb 11
EreluRoz:
Something has to be done fastly, the only solution is revolution.

I supported asiwaju based on his record as Lagos governor and comparing him to others when they were governors too. At this point let's all support the idea of revolution next time and stop making this mistake of recycling these same people.

About your last paragraph, something positive will definitely be done and let's put the country in prayers.
Supporting Tinubu based on whatever you believed he did as Governor was wrong cos he was young and agile then.


If he had became President in 2009 or thereabout it would have been a bit different but coming to contest for President of a complex nation like Nigeria at that age, mental state and unstable health condition was unfair to Nigerians.


Take it from me, if Obi was the President, things won't be as bad as this even though he may not have performed wonders but he wouldn't use appointment to settle his political allies and cronies like Tinubu did, and age is on his side too, plus he is Igbo a tribe Hausa-Fulanis and Yorubas vowed that they will never rule Nigeria after the civil war, Obi would have tried all he could to make people regret not voting in an Igbo person as President all along, Obi would have worked so hard to prove people wrong.


Obi would have listening ear and reverse any negative policy that causes untold hardship to Nigerians knowing that he is an Igbo and Yorubas will rally Hausa-Fulanis against his government if he doesn't do well

15 Likes 1 Share

Re: 5 CBN Circulars That Calmed FX Market by EreluRoz: 8:56pm On Feb 11
franchasofficia:
Supporting Tinubu based on whatever you believed he did as Governor was wrong cos he was young and agile then.


If he had became President in 2009 or thereabout it would have been a bit different but coming to contest for President of a complex nation like Nigeria at that age, mental state and unstable health condition was unfair to Nigerians.


Take it from me, if Obi was the President, things won't be as bad as this even though he may not have performed wonders but he wouldn't use appointment to settle his political allies and cronies like Tinubu did, and age is on his side too, plus he is Igbo a tribe Hausa-Fulanis and Yorubas vowed that they will never rule Nigeria after the civil war, Obi would have tried all he could to make people regret not voting in an Igbo person as President all along, Obi would have worked so hard to prove people wrong.


Obi would have listening ear and reverse any negative policy that causes untold hardship to Nigerians knowing that he is an Igbo and Yorubas will rally Hausa-Fulanis against his government if he doesn't do well
Your views are right and we hope things get better in no distant time. My heart is with all Nigerians and we should learn to look beyond tribe and religion when choosing our leaders.

2 Likes 1 Share

Re: 5 CBN Circulars That Calmed FX Market by Cassandraloius: 10:10pm On Feb 11
I reserve my comment.
Re: 5 CBN Circulars That Calmed FX Market by CaptainJune: 11:06pm On Feb 11
Calmed the market to ₦1,474.62 per dollar. Is the Op making attempt at comedy?

7 Likes

Re: 5 CBN Circulars That Calmed FX Market by Jayboi(m): 11:45pm On Feb 11
FreeStuffsNG:
The 5 CBN circulars that calmed FX market


February 11, 2024

CBN will not pay invalid FX backlog – Cardoso


The Nigerian naira recorded a gain of 4.49 percent against the dollar in seven days of trading driven by the policy measures of the Central Bank of Nigeria (CBN).


The local currency had witnessed persistent depreciation against the US dollar, hitting an all-time low on January 29, 2024, when it traded at N1,348.63 per USD at the official window. Enter the first of five CBN circulars that reversed the tide.

Jan 29 (Circular to Authorised Dealers – Financial Markets Price Transparency)


The CBN’s circular which was released on the 29th of January, led to more transparency and accurate price discovery. This initiative improved transparency of the true level of Naira, depicting unification.

Jan 31 (Letter to Banks – Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks)

Initiated on the 31st of January, the CBN’s letter to banks provided a level-playing field and improved liquidity and this led to the revision of Net Open Position (NOP) which limits the overall foreign currency assets and liabilities.

The directive has since spurred increased activity in the Nigerian Autonomous Foreign Exchange Market (NAFEM) which saw daily market turnover rise from $134.83 million to as high as $854.53 million.

Jan 31 (Removal of Allowable Limit of Exchange Rate Quoted by the International Money Transfer Operator)

In its bid to resuscitate the naira and the economy, the apex bank issued another circular on the 31st of January, boosting diaspora remittances via official channels to Nigeria.


This initiative gave permission to quote exchange rates for Naira payout to beneficiaries based on the prevailing market rates at NAFEM, removing the previous cap of -2.5% to +2.5% of previous day’s closing rate.

This decision by the Cardoso-led CBN is expected to spur increased remittances via IMTOs, stemming the channelling and exchange of foreign currency through the alternative market.

Jan 31 (Reviewed Guidelines of International Money Transfer Services in Nigeria)

The CBN’s directive on the 31st of January offered ease of doing business for IMTOs. The guidelines for international money transfer services were reviewed to reflect the changes in the market and improved ease of doing business which would in turn endure clarity on permissible activities.

Feb 8 (Removal of the Spread on Foreign Exchange Transactions)

On Friday, the CBN removed the spread on foreign exchange transactions at the interbank market. This was disclosed in a circular to all authorised dealers, dated February 8, 2024 and signed by Duke Omolara Omotunde, director, financial markets department of the CBN.

Removal of the cap on spread in the interbank market and restrictions on the sale of interbank proceeds will lead to efficiency in the market-based price discovery system.

This policy by the apex bank will lead to a truly liberalised FX market. Authorised Dealers are now enabled to make binding two-way quotes in NAFEM. The removal of restrictions will spur market activity and reduce information asymmetry.

The Naira, which appreciated on Monday after the FX policy announcement, lost 3.41% of its value against the dollar for the five trading days in the week at the official market.

The FX market ended with the dollar closing at N1,469.97 on Friday from N1,419.86 quoted on Monday, the first trading day of the week.

https://businessday.ng/business-economy/article/the-5-cbn-circulars-that-calmed-fx-market/
Mynd44 nlfpmod

Calmed u say. Are you for real?

3 Likes

Re: 5 CBN Circulars That Calmed FX Market by gaby(m): 11:51pm On Feb 11
The economy and governance has been handed over to "circular" to lead the way.
.
What moronns..

1 Like

Re: 5 CBN Circulars That Calmed FX Market by Ucheosefoh(m): 12:41am On Feb 12
Calming the dollar at this rate?

1 Like

Re: 5 CBN Circulars That Calmed FX Market by Dshocker(m): 4:46am On Feb 12
Long grammar for the common man.

Hunger and poverty is what will unite Nigerians after football.

Those in power should watch their back, another end sarz is about to go down ✍️

The picture you see below, is responsible for the our suffering, his name is Mahmood Yakubu

4 Likes 1 Share

Re: 5 CBN Circulars That Calmed FX Market by israelmao(m): 4:46am On Feb 12
Calmed forex rate at what to what?
Re: 5 CBN Circulars That Calmed FX Market by BluntCrazeMan: 4:54am On Feb 12
Ok naa
Re: 5 CBN Circulars That Calmed FX Market by Nawa4nl: 5:02am On Feb 12
Lets face it, Nija don cast. angry
Make everyone face ein region sad

1 Like

Re: 5 CBN Circulars That Calmed FX Market by abibun: 5:08am On Feb 12
VeryWickedMan:
Calmed it to N1,584.32 ~ $1
yes now, maybe by now it would have been 2500 to $1

1 Like

Re: 5 CBN Circulars That Calmed FX Market by bewla(m): 5:14am On Feb 12
Let

1 Like

Re: 5 CBN Circulars That Calmed FX Market by tnerro1(m): 5:47am On Feb 12
But I remember when the minister of finance was asked about the true value of the naira, he said it should be around 700 , is that man a patch patch CV man also😕
Re: 5 CBN Circulars That Calmed FX Market by ITbomb(m): 6:09am On Feb 12
This is governance and that was where Buhari failed

Tinubu response time is considerably okay for me and it should restore confidence to investors who will bring in money and opportunities to reverse the economic situation
Re: 5 CBN Circulars That Calmed FX Market by sammyj: 6:19am On Feb 12
grin

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