CBN Pumps Another $100m Into Forex Market. - Business - Nairaland
Nairaland Forum › Nairaland General › Business › CBN Pumps Another $100m Into Forex Market. (810 Views)
| CBN Pumps Another $100m Into Forex Market. by 989900(op): 1:34pm On Mar 24, 2017 |
The Central Bank of Nigeria (CBN) on Thursday, March 23, 2017 offered the sum of $100 million to meet the requests of wholesale customers, out of which $91 million was taken, indicating greater apprehension among dealers who anticipate a further crash of the dollar in the FOREX market. Confirming the offer, the Acting Director of Corporate Communications at the CBN, Isaac Okorafor, disclosed that the dealers will have value for their respective bids on Friday, March 24, 2017. While further disclosing that the highest and marginal bid rates were N330/$1 and N320/$1, respectively, Okorafor said no intervention was made by the Bank to meet requests for invisibles on Thursday. Meanwhile, reports gathered in Abuja and Lagos on Thursday indicates the Naira continues to firm up against major currencies, especially the United States dollar, which some customers said they bought from the streets at the rate of N385/$1. This has caused apprehension among speculators, who anticipate losses in the face of continued crash. It will be recalled that the CBN Governor, Godwin Emefiele, at the Monetary Policy Committee briefing on Tuesday, March 21, 2017, assured that the Bank will sustain its FOREX intervention in the interbank market. He had also expressed optimism about the convergence of Forex rates between the Interbank and the BDCs |
| Re: CBN Pumps Another $100m Into Forex Market. by Babacele: 2:06pm On Mar 24, 2017 |
yea, I'm so much interested in this and have been following the trends since 10 days ago. 1 Like |
| Re: CBN Pumps Another $100m Into Forex Market. by 989900(op): 2:14pm On Mar 24, 2017 |
Inflows from other sources: foreign loans, FDIs, IMTOs from diaspora, other exports and e.t.c. will all come in into the system now in-lieu of hoarding and speculating. Even cocoa traders were racketeering. A little increase on Naira card spending on foreign POS will be like sauce in indomie. 1 Like |
| Re: CBN Pumps Another $100m Into Forex Market. by modath(f): 2:31pm On Mar 24, 2017 |
989900:When you say "will" come into the system, what do you mean "exactly"? Inflows from other sources? And what FDI specifically do we have at the moment? Thought all dem portfolio investors have taken flight & aren't returning anytime soon... What does a sub $50 crude oil price & resurgence of American shale mean to the nation's ecomomic wellbeing? If dem "firework" experts begin to do play play with banger south of the Niger, wetin be our plan B? A little increase on Naira card spending on foreign POS will be like sauce in indomie. ..That's the taste in the pudding... All dem banks ahould be compelled to enable cards since dollars don turn pure water... Only GT, Access enable cards at the moment & their miserly $100 is nothing to hope on .... CBN should get it together & let that start working stat... .* I am hopeful &apprehensive at the same time* This country has a way of building one's hopes & leaving one high dry ro be mocked!!!  2 Likes |
| Re: CBN Pumps Another $100m Into Forex Market. by 989900(op): 2:51pm On Mar 24, 2017*. Modified: 9:58am On Mar 27, 2017 |
modath:Hi sis, I'll reply once I'm less busy. In the meantime, that article (N350 . . . If I were the CBN Governor) I wrote some while ago already answered most questions. When you say "will" come into the system, what do you mean "exactly"? That means when Modath sells her exports, she doesn't feel the need to hoard her Forex earnings speculating on it, 'cause we have a collapsing currency, rather, she changes it into Naira -- that 'comes into the system'. That means when Babacele or passingshot, or whoevershot send money home from overseas, they don't have to do so by hand or other alternative means so they can change at street price cause it is far more profitable, nor would 989900's or Adesiji77's mum feel the need to hoard her dollars in her dorm account speculating on the Naira further crashing, rather, they all send money home via the cheapest IMTO i.e Moneygram or Western union because rates are more or less same with back market -- that goes into the system as dollars is received by the banks and Naira paid out. Inflows from other sources? Diaspora remittances was $35b last year, that was roughly 100% increase from 2 years ago (oil receipts was $10b-$12b) FDIs (that was around $4b last year) #poor Non oil exports are chipping in their bits than they have in decades. What does a sub $50 crude oil price & resurgence of American shale mean to the nation's ecomomic wellbeing? Above $40 we'll cope; not as well as above 50 or 60, but definitely not as bad as $30 at half production capacity with near zero refining capacity sometime last year. As an aside, since last week I have had 2 of my suppliers from China pleading if I can pay in RMB! Trump is trying to play the currency hide and seek with China and Japan, meaning cheaper dollar . . . there is some subtle currency war going on right now. Meanwhile cheaper dollar will mean a little spike in crude per barrel prices . . . many pros and cons here. If dem "firework" experts begin to do play play with banger south of the Niger, wetin be our plan B? We can't afford that for many reasons, and that is just not cool for any of us -- EVERYONE and everything suffers. Like I said on that thread: 'N350 To $1 If I Were The CBN Governor'; "Going forward, after the 'technical devaluation' to N375 to a dollar for hospital, school and other bills, the best policy would be to continue to support the Naira until western union and other remittance platforms rates merges with parallel market or within N5-N10 of the parallel market say in the next few weeks, thereby encouraging inflows coming in thru the CBN and speculators dumping their 'stash', which would further help the Naira appreciate considerably to around N350 or less, even with less inputs from 'petro-dollars'. On the longer term, we pray our 'wild wild south-south' brothers would relax small about this bombing things, so that we can have more power supply which would help reduce our Forex consumption for refined fuel imports, while the CBN and FG intensifies efforts on reducing our over $4b per annum demand on rice imports and other food imports, hoping we can do something in the steel sector to reduce the billions of dollars we waste in importing those every year too. As we pray for Dangote and other new refineries coming up to deliver. " That's the taste in the pudding... All dem banks ahould be compelled to enable cards since dollars don turn pure water... Only GT, Access enable cards at the moment & their miserly $100 is nothing to hope on ....Touché! * I am hopeful &apprehensive at the same time* This country has a way of building one's hopes & leaving one high dry ro be mockedI feel same way too, sis . . . just keeping the faith . . . too many cabals in this country -- cabals everywhere! Gotta run . . . busy schedules. 1 Like |
| Re: CBN Pumps Another $100m Into Forex Market. by 989900(op): 10:01am On Mar 27, 2017 |
Further interventions expected soon. |
| Re: CBN Pumps Another $100m Into Forex Market. by modath(f): 10:08am On Mar 27, 2017*. Modified: 10:58am On Mar 27, 2017 |
989900:Heard PTA is now N360.... good one but i still need CARDS to work & 500$ monthly limit not the miserly 2 banks $100... Bro, oil price isn't giving me confidence for long term hope but for now, let's rejoice..  https://www.businessdayonline.com/oil-price-spoil-nigerias-naira-party/ 2 Likes 1 Share |
| Re: CBN Pumps Another $100m Into Forex Market. by 989900(op): 11:22am On Mar 27, 2017 |
modath:Yeah. We discussed these things . . . |
| Re: CBN Pumps Another $100m Into Forex Market. by austinvsb1(m): 11:41am On Mar 27, 2017 |
Mann.. I had a dream last night. That with a N200,000 salary, You can buy a mercedes of €50,000 and have enough money left in your naira account to live like a king! Money is a f#cking commodity ffs. It obeys the law of demand and supply! CBN should continue to flood the market with dollars so much so that supply is wayyyyy more than the demand and watch our naira grow in strength!!! $1 equals N1 is not a pipe dream! It is totally achievable with proper determination and will! Imagine how awesome that would be for the nigerian economy! |
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