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  • Dollar Hits N575 Two Days After Aboki FX Update Suspension

    Dollar Hits N575 Two Days After Aboki FX Update Suspension

     

    The dollar rose to between N572 and N575 in different parts of the country on Monday barely two days after online platform, Aboki FX, stopped providing updates on the exchange rate.

     

    A visit to the ever-busy Wuse Zone 4 which is the hub of bureau de change operators in Abuja, discovered that the dollar was sold for N574 as opposed to the N570 it was sold for on Friday.

     

    In Lagos, the dollar was sold at N572 while in Kano it was N575 as of 3pm on Monday.

     

    The pound was sold for N780 as opposed to N770 last Friday.

     

    The Governor of the Central Bank of Nigeria, Godwin Emefiele, had accused the online foreign exchange update platform, Aboxi FX, of manipulating the forex market.

     

    Emefiele, had said the bank would shut down the operations of Aboki FX which it described as illegal.

     

    Subsequently, Aboki FX said in a statement on Friday that it would no longer publish exchange rates for now and hoped that the naira would stabilise.

     

    It further stated that it usually gets its information from bureau de change operators in Lagos.

  • Naira Sinks to N530 Against Dollar, As Pound Hits N720

    Naira Sinks to N530 Against Dollar, As Pound Hits N720

    The naira plunged to a fresh record low against the dollar, the British pound sterling and euro on Thursday amid the lingering scarcity of foreign exchange in Nigeria.

     

    The value of the naira fell against the US currency on at both the parallel market and the Investors’ and Exporters’ foreign exchange window.

     

    The local currency, which stood at 526/$1 on Tuesday, fell to 530/$1 at the parallel market on Thursday from 528/$1 on Wednesday.

     

    The naira dipped to 720 against the pound at the parallel market from 717/£1 on Wednesday, while the euro rose to N620 from N616 on Wednesday.

     

    At the I&E window, the naira weakened further to 411.67/$1 on Thursday from 411.50/$1 on Wednesday, according to FMDQ Group.

     

    No less than 55 per cent to 60 per cent of Nigerian forex transactions are traded at this window, which is used by the CBN and most exporters and investors, according to Financial Derivatives Company Limited.

     

    “It serves as not only a source of price discovery but also a barometer for measuring potential and actual CBN intervention in the market. Some of the exchange rate determinants are balance of payments, capital inflows and trade balance,” the FDC said.

     

    The PUNCH had reported on Tuesday that the naira extended its decline on Monday, sliding to an all-time low of 527 against the dollar at the parallel market.

     

    The naira had strengthened to 506/$1 on August 4 after plunging to 525/$1 at the parallel market on July 28, a day after the Central Bank of Nigeria stopped foreign exchange sales to Bureaux de Change.

     

    The CBN Governor, Mr Godwin Emefiele, had on July 27, at the end of the Monetary Policy Committee meeting, announced the stoppage of forex sale to the BDCs, saying they had turned themselves into “agents that facilitate graft and corrupt activities of people who seek illicit fund flow and money laundering in Nigeria.”

     

    In a related development, the country’s external reserves have risen above $34bn for the first time in more than two and a half months, according to the CBN.

     

    The reserves, which had been wobbling in recent weeks, jumped from $33.40bn at the end of July to $34.02bn on August 31, the highest since June 9.

     

    The CBN data showed that the reserves fell to a record low of $33.09bn on July 12 from $34bn on June 10.

     

  • Polaris Bank Begins Payment of N5 Per Dollar

    Polaris Bank Begins Payment of N5 Per Dollar

     

    Polaris Bank said it has commenced implementation of the regulatory Central Bank of Nigeria’s extra N5 for every dollar received into domiciliary accounts or as cash over the counter.

     

    It said this in a statement on Monday titled ‘Polaris Bank pays extra N5 for every dollar remitted to Nigeria’.

     

    The acting Managing Director/Chief Executive Officer, Polaris Bank, Mr Innocent Ike, disclosed that “Growing evidence has shown a positive relationship between diaspora remittances and economic growth and as such, the bank will continue to contribute its quota to enhancing economic development in the country.”

     

    He explained that the decision was in line with the CBN’s directive and fully aligned with efforts to encourage the inflow of diaspora remittances into the country.

     

    The banker described the “CBN Naira 4 dollar scheme” as an unprecedented incentive for senders and recipients of international money transfers, noting that the scheme which took effect from 8th March, will run till 8th May, 2021.

     

    “We have started paying extra N5 on every dollar to beneficiaries at our branches. This is in addition to the foreign currency they receive from their family and friends abroad,” he stated.

     

    Polaris Bank is a future-determining bank committed to delivering industry-defining products and services across all sectors of the Nigerian economy, the statement said.