₦airaland Forum

Nigeria’s central bank announced limits on how much banks can hold in foreign currencies on Wednesday and expressed concern about the growth of forex exposures on their balance sheets after the local currency tumbled against the U.S. dollar.

Nigeria’s currency fell to a record low on the official market on Tuesday, slipping below the unofficial parallel market rate, after market regulator FMDQ Exchange changed its closing rate calculation methodology for the naira.

Its dollar-denominated sovereign bonds also suffered sharp falls.

According to a Reuters report the central bank has introduced a limit on lenders’ net open positions of 20% of shareholders’ funds for short positions and a zero limit for long positions and ordered banks to harmonise reporting, the monetary authority said in a circular on Wednesday.

In the past, lenders were not allowed to have open positions on the dollar, meaning they could not buy foreign exchange on their own account from the market or speculate on the value of the currency.

It asked them to bring their exposures within the set limits immediately, meaning that banks would have to sell down or face sanctions including suspension from the currency market.

Before Nigeria’s currency woes, lenders could use their open net positions on foreign currency to finance short-term trade lines without resorting to the central bank for bidding.

That effectively let banks “make the market” for dollars and provide two-way quotes for buying and selling the currency, creating a fully functioning forex market.

The central bank said lenders will be required to have liquid foreign assets to cover maturing foreign currency obligations and asked banks to also have a foreign exchange contingency funding arrangement with other institutions.

https://businessday.ng/business-economy/article/nigerias-central-bank-caps-amount-banks-can-hold-in-fx-as-naira-rout-worsens/

The CBN Governor should resign. He is lacks the tenacity to be on that sit.

False Allegation is real

gidgiddy:
These people are funny. Was the TB Joshua documentary about if Ajoke Joshua is his biological child or not? It was about if TB Joshua sexually abused women

In the Video above, TB Joshua openly said that he adopted Ajoke as a baby and she has lived in house ever since. In the very least, she is his adoptive daughter since birth

Now these people are trying to divert from the substance of the matter, which is TB Joshua's alleged sexual molestation of women, to discuss if Ajoke was his biological daughter

A girl you adopted as baby, gave your surname, raised in your household, what can that girl be except your daughter?

Please ooo is it TB Joshua that made the school wrote that she stole money. A confirmed thief will always be a lier.If I don't want to believe TB Joshua on anything but on this Ajoke own I am convinced she intentionally wants to use the BBC platform to paint the man black to cover her secret

The CBN will soon issue a regulation on FX, please don't buy and keep again ooo. Keep safe and watch. If u have plenty just sell

Omihanifa:
Everyone knew TB joshua was using marine powers, and one thing about marine kingdom is that if you are dedicated in worshipping them and you follow their instructions one will be very rich and powerful. But ke me say one thing there's no power as great as that of Jesus christ.

U too dey watch Nigeria home video.

Dollar will start crashing, I pity hoarders. Expect N800 to $1

The Federal Government on Friday received a $2.25b foreign exchange support facility from the African Import-Export Bank.

The Minister of Finance, Wale Edun, confirmed this to Arise TV, said it is the first tranche of the $3.3bn facility from the bank. He noted that the loan was aimed at resolving the acute FX shortage that has hampered the economy.

According to the report monitored by our correspondent, the balance of $1.05bn will be received in the first week of January.

Edun stated that work has commenced for solutions to Nigeria’s economic challenges.

In August, the Nigerian National Petroleum Company Limited announced that it had secured a $3bn emergency loan from the Afrexim Bank to stabilise the country’s volatile foreign exchange market.

https://punchng.com/fg-receives-2-25bn-afrexim-bank-loan/

Morning walk and exercise

800N to 1$ in sabo Ibadan. I pity horders

SpatialKing:
Exactly

Oguta and Ohaji/Egbama combined in Imo have the largest natural gas deposit in Africa...

The fear of Igbo advancing and getting wealthy has stopped them from Constructing LNG plant in Imo State...

Who are the them that should come and construct LNG for the SE.So u mean all of u shouting LP and ur simon Ekpa can not for a company to build LNG plant abi. In d SW we have Odua Investment what do u have on the SE.

For those hording dollar, their eye go vlear

970 in my area now. People are even scared to buy

Naira furthered its gaining streak against the Dollar on Thursday as the parallel segment of the foreign exchange (FX) market continues to react to the $3 billion crude oil repayment loan secured by the Nigerian National Petroleum Company Limited (NNPCL) from Africa Import and Export Bank (AFREXIM) to stabilise the local currency.

Parallel market FX dealers were as at 9.52am on Thursday August 17 seen buying dollar at N835 while selling at N860, according to data by AbokiFX, an online platform that tracks the exchange rate on the parallel market.


Before the news of the AFREXIM loan deal broke on Wednesday, parallel market FX dealers were buying the green back at N880 while selling at N910.

Otega Ogra, senior special assistant to President Bola Tinubu on Digital/New Media explained in a tweet what the $3billion Emergency Crude Repayment Loan from Afrexim is meant to achieve.

“What’s the benefit of this loan to Nigeria? The loan will assist NNPC Limited in settling taxes and royalties in advance. It will also equip the Federal Government with the necessary dollar liquidity to stabilise the Naira, with limited risk,” he said.

“Will this affect fuel prices? A strengthened Naira as a result of this initiative will lead to a reduction in fuel costs. This means that if the Naira appreciates in value, the cost of fuel will drop and further increases will be halted,” Ogra added.

Read also: Tinubu reverts to defending Naira with NNPC’s $3bn AFREXIM loan deal

“What about subsidies? Are they coming back? No. A stronger Naira will result in lower prices from the current level, making subsidies unnecessary. The deregulation policy remains unchanged,” the President’s aide said.

In their recent commentary, Damilare Ojo-led team of research analysts at Lagos-based Meristem said, “In our view, core inflation will remain elevated in the near term in light of the continued free-fall of the Naira. The outlook of the FX market is largely marked by uncertainty and volatility; as such, there is an urgent need for a unified strategy to address these challenges, involving enhancing FX liquidity, promoting export diversity, and fostering investors’ confidence through transparent policies.”

The National Bureau of Statistics (NBS) reported the headline inflation rate for July 2023 to have increased by 129 basis points (bps) to 24.08percent year-on-year (YoY) from 22.79percent YoY in June 2023.


The Meristem analysts noted that the July data also reflects the effect of the petroleum subsidy removal in May and the resultant increase in prices of human and merchandise transportation in the subsequent months.

Before receiving firepower from Afrexim Bank in Cairo to help fight speculators that have ambushed the FX market, the gap between official and the parallel market had widened by about N200 in the past week. It had reached N950/$ at the parallel market before this recent drop.

Tunde Delu, an economist explained that the loan is an attempt to bridge the FX supply gap.

“It is apparent that the short-term panacea/solution to the rising foreign exchange prices is to seek alternative supply avenues. One of the options open to the federal government is to seek such foreign loans directly or through its appointed agencies. The implication would be a positive effect on the supply of FX thereby pushing the price of FX down as the demand-supply gap shrinks,” Delu said.

“To simplify it in the nutshell, we need ‘quick cash’ to cover the demand for forex by all sectors and that has been sourced via the $3billion Crude oil Repayment Loan which enables NNPCL meet its payment obligations,” he added.

Omotayo Akorede Samuel, corporate finance lawyer said that the $3billion Emergency Crude Repayment Loan from Afrexim is standard practice.

“This is standard practice in the Oil and Gas industry Crude oil repayment financing has several benefits for oil companies.”

He said one of the primary benefits is that it allows companies to repay their debts without having to use their cash reserves.

“This can be particularly beneficial for companies that are experiencing financial difficulties or FX issues like Nigeria. Rather than go to the CBN for FX, this $3billion dollar will be used!

“Another benefit of crude oil repayment financing is that the repayment is tied to Crude Oil. Which means that the company can use its cash reserves for other purposes, such as investing in new projects. ‘Crude oil no Dey finish!!!’ You can pay your loan off in 6 months if you want,” Samuel said.

https://businessday.ng/markets/currency-watch/article/naira-gains-further-trades-at-860-on-parallel-market/

Dollar now trading at 800 naira to one USD, I pity those who bought at high price. If you want to buy please buy at 700 naira to be on the save side. Any amount above that make the person they carry him dollar they go ooo except u won pay school fees.

Who do u mean by monopoly, did u ask for your own license to build a refinery and u are refused.U guys just hate hearing good news about Nigeria

A former Accountant, Pensions Account, Office of the Office of the Head of Service of the Federation, Garba Abdullahi Tahir, also known as Tahir Garba, was today, March 3, 2023 convicted and sentenced to 21 years imprisonment for stealing N26.1million meant for pensioners.
Abdullahi was prosecuted by the Economic and Financial Crimes Commission at a Federal High Court, Abuja on a seven count amended charge that bordered on money laundering.
Count six reads, “That you Garba Abdullahi Tahir (also known as Tahir Garba on or about the 12th April, 2010 in Abuja within the jurisdiction of this Honourable Court converted the sum of N7,800,000.00 (Seven Million and Eight Hundred Thousand Naira) into a bank draft or Manager's Cheque in favour of CHARO Bureau de Change Ltd through your bank account with Ecobank Plc, which sum represented part of the proceeds of crime of criminal breach of trust committed by you in the Office of the Head of Service of the Federation with the aim of concealing its illicit origin and you thereby committed an offence contrary to Section 14(1)(a) of the Money Laundering (Prohibition) Act, 2004 and punishable under section 14(1) of the same Act”
He had pleaded not guilty to the charges upon arraignment. The case went into trial with the prosecution calling several witnesses and tendering documents in evidence.
Delivering judgment today, Justice Inyang Ekwo said the prosecution had proved the case against the defendant and convicted him on all seven charges.
The judge sentenced the defendant to three years imprisonment on each of the seven counts. The sentences are however to run concurrently.
The case is a part of the billion naira pension fraud in the Office of the Head of Service of Federation, for which a number of civil servants were investigated over ten years ago, and charged to court by the EFCC.
Visit www.efcc.gov.ng for more stories

The supreme court said the once that remains in circulation.

i

The dollar to Crash against the Naira, please don't buy dollars to keep for now. If you know you know. Most aboki now are having their fingers burnt due to speculation and stockpiling of Naira. 600 to 1$ loading

No more subsidy, Hero beer of Mr Peter Obi is 500 per litre

[quote author=uvie66 post=118603392]I am shocked to hear what is coming out of this Man's mouth, how can he compare a poor country to a rich country, this is like v unlike.
The sole reason people carry naira notes in thousands is solely because of inflation. One can hardly see anything priced at 20 or 50 naira notes. a loaf of bread in the UK can still be bought for 50p while in Nigeria it is usually #500 and above.[/quYote]

You can pay with POS

This is one of the best decision of this administration. Let me see how ransom will b paid. If you like no sell your dollars ooo, the thing go crash for parallel market like kilode cos abiloki will have to load 100 and 200 Naira to pay you in cash. You will need Ghana must go to buy $10000.

MiaBeer:
Now, 500 and 1000 naira will likely be scarce. It will likely increase robbery because traders will have a hard time moving around with 100 and 200 naira notes.

Trader should open account for his or her money

Heard CBN is planning to close all inactive domiciliary account. These are accounts who are not active in receiving any forex from a business transaction. People just buy forex from black market and dump in their don account with the aim of collecting it when prices are up to change back to the naira again. This will happen soon, watchout
L

Any link ti watch it

640 in Ibadan, heard It will crash further by next week.

1x2x3:
What has the naira done to bounce back? What you see now is hype, naira didn't add any real value so this hype is just for a while. Lol through this thread, there's a guy telling people like you to sell it off immediately, such a person is gathering that same dollar. Hold your dollar.

Continue to deceive yourself when the CBN is mopping up Naira, in three weeks when the new note comes into circulation, Aboki no go won collect the old note from you leading to Naira scarcity with lots of $ waiting to be exchanged for Naira. Let the Dangote refinery catch u with the $ you are keeping OYO go be your name

1$ is 660 this morning, the thing is seriously crashing. For those hoarding the $ they will soon bite their fingers cos by January where u will have limited Naira in circulation and the Dangote refinery stopping the importation of petroleum products $ will be in high supply against the Naira

FriendsAndFans:
Dollar will still sell 1$ too 1000.
It's an irredeemable journey unless a miracle happens.

Continue to deceive yourself, the graph is already going down. By the time the old notes fades away I will see where people will see ordinary 1M Naira in notes to change to the $.