₦airaland Forum

Banks Say CBN Choking Economy With FX Restrictions

http://www.nairausd.com/2015/06/banks-say-cbn-choking-economy-with-fx.html

President Buhari wake up. This is happening under your watch

9niceguy:
That's why I prefer colonial masters. Which way naa?

You have to apologies to Nigeria for this statement.

The naira tumbled against the dollar from 222 on Wednesday to 225 on Thursday, barely 36 hours after the Central Bank of Nigeria banned importers of rice, textiles, tomato paste and 38 other items from getting their forex needs from the nation’s forex market.

The regulator had said the new rule would help preserve the external reserves, facilitate the resuscitation of domestic industries and generate employment opportunities.

But the ban, which economists said would see about $5.7bn quarterly forex demand by importers of the items move from the official to the parallel market, is already fuelling scarcity of dollar at the black market and the Bureau De Change segment of the forex market.

Black market operators in Lagos, Abuja and Kano told our correspondent on Thursday that they had limited amount of foreign currencies for sale.

While many claimed that they did not have dollar for sale, a few who were ready to sell the currency quoted between N224 and N225 as the selling price.

The Acting President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, said the dollar sold for between 224 and 225 on the street market because many of the operators were hoarding their stock of forex in anticipation of further rise in prices against the naira.

The hoarding, he said, followed the CBN’s new policy banning importers of 40 items from the forex market.

He said, “Most operators at the black market and a few at the BDC segment are hoarding their stock of forex in anticipation of further price increase. Most of them believe the CBN’s new policy will shift a lot of demand to the parallel market and the BDC segment, a situation that may make the naira to fall. So, rather than sell what they have, they are hoarding it. It is this artificial scarcity that is causing the price to rise.

“As of today (Thursday), the United States dollar is being sold for between N224 and N225. However, pounds and euro are still at 350 and 249, respectively. They may also rise in the coming days, while the dollar may sell for N230 by next week.”

The CBN had said that traders desirous of importing the banned items could do so using their own funds without recourse to the forex market.

Economists and analysts said the move would put the naira under further pressure as importers push more demand from the interbank forex market to the parallel market.

Trading on the interbank market, which is pegged around the central bank’s rate of N196.90 to the dollar, was at N199.40 on Thursday.

An economic and financial analyst at the WSTC Financial Services Limited, Mr. Olutola Oni, said the new forex rule would lead to inflation.

The Head, Research and Investment, Afrinvest West Africa, Mr. Ayodeji Ebo, said that the new policy would reduce the income of banks.

Source:http://www.nairausd.com/2015/06/naira-now-n225-in-paralllel-market-on.html

Tapout:
wise men have always come from the east, n are still coming.....

You can say that again.

You know. .....

Just read it now

This is beautiful

Exchange Rate for Dollar-Naira, Thursday 25th June 2015

http://www.nairausd.com/2015/06/exchange-rate-for-dollar-naira-thursday_25.htm

Exchange Rate for Dollar-Naira, Thursday 25th June 2015

http://www.nairausd.com/2015/06/exchange-rate-for-dollar-naira-thursday_25.htm

Exchange Rate for Dollar-Naira, Thursday 25th June 2015
http://www.nairausd.com/2015/06/exchange-rate-for-dollar-naira-thursday_25.htm

Exchange Rate for Dollar-Naira, Thursday 25th June 2015

http://www.nairausd.com/2015/06/exchange-rate-for-dollar-naira-thursday_25.htm

Exchange Rate for B Pound-Naira, Thursday 25th June 2015

http://www.nairausd.com/2015/06/exchange-rate-for-b-pound-naira_25.html

baggz:
What is our naira becoming to?
http://chinnko.com/index.php?u=/topic/488/dual-hub-for-air-cargo-takes-shape

I pray we shouldn't follow the wrong part

But there hope somewhere

Non-Oil Revenue Exceeds Earnings from Crude In April

http://www.nairausd.com/2015/06/non-oil-revenue-exceeds-earnings-from.html

@ lalasticlala.
@Ngenekwenu
@Firefire
@Barcanista
@EUROBOMBER

Different being entirely.

You know...........

The Central Bank of Nigeria (CBN) has expressed fears that removal of restrictions imposed on the interbank foreign exchange market will lead to sharp depreciation of the naira.

The restrictions were imposed to curb demand for dollars in a bid to halt the depreciation of the naira against the dollar. But the restrictions led to lack of supply of dollars (liquidity) for trading in the interbank foreign exchange market.

In a meeting held with bank treasurers under the auspices of the Financial market Dealers Association (FMDA) Weekend, Governor Godwin Emefiele and other officials said while they were in favor of boosting liquidity in the foreign exchange market, there was concern that would lead to a surge in demand for dollars, according to a banker that attended the meeting who spoke on condition of anonymity. Local banks can’t access enough foreign-currency under the current rules”, the banker said.

The central bank asked treasurers and members of the Financial Markets Dealers Association to consider ways of stopping the naira from sliding if it did allow trading to increase, the banker said.

Faced with a plunge in the price of oil, the source of 90 percent of Nigeria’s exports, Emefiele, 53, started imposing restrictions in the last three months of 2014 as he sought to protect the currency, which has weakened 18 percent against the dollar in the past year.

Bankers at the meeting told the regulator that the curbs were making foreign investors shun Nigerian bonds and stocks and preventing local companies from buying all the dollars they need to pay for imports.
‘No Decisions’

The central bank has been running down its foreign reserves, which have declined 27 percent to $29 billion since the end of September, as it defends the naira.

Ibrahim Mu’azu, a central bank spokesman, declined to comment and referred questions to the FMDA when contacted by phone on Monday.

“No decisions were taken” at the meeting, David Adepoju, the FMDA’s president and head of financial markets at Standard Chartered Plc’s Nigerian subsidiary, said by phone on Monday.

The naira fell to a record low of 206.32 per dollar on Feb. 12, the day before the central bank prevented dealers from buying greenbacks without matching orders from customers.

The unit has since rallied and closed within a range of 197 to 200.7 every day since the end of February. It weakened less than 0.1 percent to 198.90 at 4:46 p.m. in Lagos on Tuesday.

Portfolio investors including Aberdeen Asset Management Plc. and Investec Asset Management have been put off buying assets in the country until there’s a devaluation.

That’s a further drag on an economy whose growth the International Monetary Fund estimates will slow to 4.8 percent this year, about half the rate of the past 15 years.
Currency Restrictions

JPMorgan Chase & Co. may cut Nigeria from its emerging market bond indexes, tracked by more than $200 billion of funds, because of the currency restrictions, which it said may make it more difficult for investors to track the gauges. The New York-based lender will make a decision by the end of the year, it said on June 5.

Source:http://www.nairausd.com/2015/06/naira-will-further-depreciate-if-cbn.html

ice25:
Buhari, you've got some resurrection to perform.

All hand should on deck sis.

@ lalasticlala.
@Ngenekwenu
@Firefire
@Barcanista
@EUROBOMBER
@Ishilov
@Donpholus

the Central Bank of Nigeria’s decision to stop foreign exchange sales to importers of 40 items on Tuesday is a good move but it will make the naira to fall further against the dollar, especially at the parallel market, economists and analysts have said.


The CBN had banned the importers of rice, private jets, textiles, poultry products, vegetable oil and 35 other items from accessing foreign exchange at the nation’s forex markets.

The regulator said the move would help preserve the external reserves, facilitate the resuscitation of domestic industries and generate employment opportunities.

But economists and analysts, who reacted to the announcement on Wednesday, said the naira had already come under severe pressure and would fall further as the central bank pushed forex demand from the interbank market to the parallel market.

The CBN had said that those desirous of importing the listed items could do so using their own funds without recourse to the Nigerian forex markets.

They predicted that the naira could fall to 230 against the dollar at the parallel market in coming days or weeks.

An analyst and currency strategist at Ecobank Nigeria, Mr. Kunle Ezun, said, “The immediate effect of the circular is on the parallel market (black market), where dollar-naira currently stands at 220. By this circular, the CBN has surreptitiously transferred the funding of the excluded items to the parallel market. This is expected to increase the naira volatility to about 230.

“This will lead to an interbank exchange rate of around N217 to one dollar (the CBN indicative rate is currently set at one dollar to N196.90).”

An Associate Professor of Economics at the Ekiti State University, Abel Awe, commended the CBN for the move but said it might fuel further pressure on the naira, making it to go for about 230 against the dollar at the parallel market.

He recommended an outright ban on the importation of the listed items and other similar items by the Ministry of Finance.

The Head, Investment Research, Sterling Capital, Mr. Sewa Wusu, noted that the naira had been under pressure because the market was waiting in anticipation of a further devaluation.

“What the economy needs now is to become a producer economy. If our industries are allowed to produce these items, our dependence on oil and other imported items will be reduced. Most of these items can be produced locally. The ban is a good move,” he said.

The Acting President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, said the naira was likely to fall to 230 against the dollar at the parallel market in the next one week.

“The restriction will reduce the demand in the forex market in the short run; in the long run, there is still a need for exchange rate adjustment (naira devaluation) to bring the demand and supply in the forex market to equilibrium,” an economist and Chief Executive Officer, Financial Derivatives Limited, Mr. Bismarck Rewane, said.

Meanwhile, the new policy has started creating artificial scarcity of forex at the black market.

It was learnt on Wednesday that black market operators were hoarding their stock of dollars, euros and pounds in anticipation of major appreciation in the value of the foreign currencies against the naira at the parallel market.

According to a report by Ecobank Nigeria Economics Research, the 40 items banned from the forex market constitute 63.6 per cent of the $9bn total foreign exchange utilisation on visible imports in the fourth quarter of 2014.

This means that the banned items will cause approximately $5.7bn quarterly forex demand to move from the official forex market to the parallel market.

The Managing Director, DLM Asset Management Limited, Mr. Tola Odukoya, said to make Nigeria a productive base, there was a need for the CBN to compliment the forex ban with a monetary policy by reducing the Monetary Policy Rate in order to boost lending to the real sector and ultimately grow the economy.

The Chairman, Ikeja Shop Owners Association, Mr. John Okonkwo, observed that any policy that would cause the prices of local items to rise was not a good one.

He added that the prices of food items were already getting too high for the ordinary man to afford.

The Director-General, Lagos Chamber of Commerce and Industry, Mr. Muda Yusuf, said the group was still studying the policy and would come up with a comprehensive response, adding that it was doubtful if the parallel market and Bureaux de Change had the capacity to absorb the demand for foreign exchange from the importers.

Source:http://www.nairausd.com/2015/06/forex-rule-naira-to-fall-further-say.html

Confused party members

hassan85:
Prob my foot. Yes prob my foot! Thesame efcc that 'arrested' Ex Gov nyako, bashed Ex Gov sule Lamido, Ex Gov of Imo... What did de discus we dont knw now de are free again. They should stop Mis Using the word "PROBE" its chat they are doing plus witch hunting. Till date de just wasting tax payers money and getting noting in return. Akpabio is a big thief i know that we all know that. But till PMB Do his restructuring of EFCC and icpc, we will never see results. And yes Apabio gats some imunity now just like Stella Odua. Efcc should stop the Propaganda. We the youths are becoming tired of Reading NIGERIAN newspapers on a daily bases.

Love this bro.

You know. ....

Journalists and their wahala.

Lovechyld101:
NA LIE!!!! Get ur fact Right I just Google it it still 1$= 199naira

PARALLEL MARKET bro=BLACK MARKET

barcanista:
My brother, every year we keep having the same problem. Why won't our naira continue to fall when we continue to import than produce? Why won't it fall when we continue to allow foreigners to be paid in dollars instead of naira? Why won't it fall when some merchants accept payment in dollars? Why won't it fall when the rich people will rather operate dollar account and ship dollars abroad than saving in naira in Nigeria?

Just One day bro.

barcanista:
The economic managers should allow the Naira to fall to its real value and then work our economic plans to bring it to sanity. This method of naira defence don't seem to be having long term positive effect. We need to fix the real sectors and improve the manufacturing and other sectors of our economy.

Our Gov. know the real problem of the Country but are not ready to solve it due to their personal gain.

Exchange Rate for Dollar-Naira, Wednesday 24th June 2015

http://www.nairausd.com/2015/06/exchange-rate-for-dollar-naira_24.html

Exchange Rate for Dollar-Naira, Wednesday 24th June 2015

http://www.nairausd.com/2015/06/exchange-rate-for-dollar-naira_24.html

Exchange Rate for Dollar-Naira, Wednesday 24th June 2015

http://www.nairausd.com/2015/06/exchange-rate-for-dollar-naira_24.html

Exchange Rate for Dollar-Naira, Wednesday 24th June 2015

http://www.nairausd.com/2015/06/exchange-rate-for-dollar-naira_24.html