punchng.com Open in urlscan Pro
2606:4700:10::ac43:5a5  Public Scan

Form analysis
2 forms found in the DOM

GET https://punchng.com

<form method="get" action="https://punchng.com">
  <div class="input-group">
    <input type="search" class="form-control" name="s" required="">
    <button aria-label="search button" class="">Search</button>
  </div>
</form>

<form>
  <input type="search" name="" placeholder="Search">
  <button><svg xmlns="http://www.w3.org/2000/svg" width="16" height="16" fill="currentColor" class="bi bi-search" viewBox="0 0 16 16">
      <path d="M11.742 10.344a6.5 6.5 0 1 0-1.397 1.398h-.001c.03.04.062.078.098.115l3.85 3.85a1 1 0 0 0 1.415-1.414l-3.85-3.85a1.007 1.007 0 0 0-.115-.1zM12 6.5a5.5 5.5 0 1 1-11 0 5.5 5.5 0 0 1 11 0z"></path>
    </svg></button>
</form>

Text Content

×
Search
 * Advertise with us
 * Thursday, March 21, 2024

 * 
 * 
 * 
 * 
 * 
 * 
 * 

Most Widely Read Newspaper

Videos
 * Home
 * News
 * Sports
 * Investigations
 * Metro Plus
 * Videos
 * Politics
 * Business
 * HealthWise
 * Editorial
 * Columns
 * Podcast
 * 

PUNCHNG MENU:

 * Video
 * Spice
 * Special Features
 * Education
 * Sex & Relationship
 * Interview
 * Columns
 * Opinion
 * Betting






NAIRA REBOUNDS TO N1,400/$ AS SPECULATORS OFFLOAD FOREX

21st March 2024

Naira and Dollar

Damilola Aina and Daniel Adaji

Kindly share this story:

 * 
 * 
 * 
 * 
 * 
 * 

The naira rebounded against the United States dollar on Wednesday at the
official and parallel markets, with the local currency recording a significant
gain against the greenback at the black market.

This came as the Central Bank of Nigeria announced the final settlements of all
valid foreign exchange backlogs, fulfilling a key pledge of the apex bank
governor, Mr. Olayemi Cardoso, to process an inherited backlog of $7bn in
claims.

The Acting CBN Director, Corporate Communications, Mrs. Hakama Sidi Ali, who
disclosed this in Abuja on Wednesday, recalled the central bank had recently
cleared $1.5bn from the backlogs.

On Wednesday, the naira closed trading at 1,410/dollar at the parallel market
and N1,492 at the official Nigerian Autonomous Foreign Exchange Market,
according to data compiled from the FMDQ Securities Exchange.




The gain recorded by the naira at the official market represents an appreciation
of N68 or 4.5 per cent, from the N1,560/$1 recorded on Tuesday at NAFEM, and a
gain of 13.5 per cent or N190 at the parallel market.

According to findings by The PUNCH, the exchange rate has been gaining lately as
speculators begin to dump their dollar stocks, following waning demand by
prospective buyers amid CBN clampdowns.

A string of circulars by the Central Bank of Nigeria in recent weeks and months
have helped to plug leakages and blocked loopholes previously explored by
currency speculators and racketeers.



Also, the recent clampdowns on the activities of illegal BDC operators in Lagos,
Abuja and Kano by the operatives of the Economic and Financial Crimes Commission
have helped to reduce the volatility of the naira.

 A Bureau De Change Operator at Wuse 2, Abuja, Ibrahim Yahu, said on Wednesday
that the greenback was bought at the rate of N1400/$1 and sold at N1500/$,
allowing operators to make a spread of N100/$1.

He said, “The highest I can buy from you is N1400/$ but we are selling at
N1500/$.

He noted that some persons bought at the rate N1,300/$ during the daily trading
activity.

Another currency trader, Malam Musa Yahyah, at the Central Business District in
the FCT, expressed mixed feelings about the new rate, stating that some traders
were forced to sell at loss due to a waning demand for the greenback.

In Lagos, a currency trader at Allen Avenue, Ikeja, Mustafa Ibrahim, said the
waning demand for the dollar, partly driven by the commencement of dollar sale
to BDC operators at the rate of 1,300/dollar, had further weakened demand for
the greenback.

He said most traders bought and sold the dollar at N1350 and N1450 on Wednesday.
According to Ibrahim, the local currency may reach a new high of 1,200/dollar in
weeks if the trend continues.




Also, Mallam Abubakar Salisu, who sells FX at the Murtala Muhammed Airport,
Lagos, said the naira-dollar exchange rate at the parallel market had been
fluctuating in recent times due to the activities of the CBN and the EFCC.

“As of today, many of us bought and sold at 1,400/dollar and N1,450/dollar. The
rate is still volatile but many of us are anxious to sell because we know the
dollar will soon crash. The only challenge is that many us bought the FX when
the rate was around N1,600, so we are concerned about the loss. We are seeking
to minimise the loss,” he said.

Meanwhile, the intraday high closed at N1,620 per dollar for the spot on Tuesday
while the intraday low closed at N1,350/$1 on the same day.

The daily foreign exchange market turnover increased to $268.29m from $195.13
million recorded on Tuesday.

On Tuesday, The PUNCH exclusively reported that forex turnover at the official
foreign exchange market increased to $11.43bn within two months of trading,
following fresh reforms by the CBN.

An analysis of reports and data of daily forex transactions recorded on the
website of FMDQ Securities, a platform that publishes official foreign exchange
trading in the country, indicated that the figure increased by 185.75 per cent
or $7.43bn between January and March 15th, 2024.

The improved liquidity at NAFEM followed a directive by the CBN on February 1,
2024, asking banks to sell their excess dollar stock to improve liquidity in the
FX market within 24 hours.



The naira has continued to appreciate against the dollar following some foreign
exchange measures put in place by the Central Bank of Nigeria.

Some of the FX reforms include efforts made at achieving a willing buyer-willing
seller market; removal of all limits on margins for the International Money
Transfer Operator remittances; introduction of a two-way quote system and the
broad reforms in the Bureau De Change segment of the market to restore
stability, enhance transparency, boost of supply, and promote of price discovery
in the Nigeria Autonomous Foreign Exchange Market.

The pressure on the naira/dollar exchange rate is beginning to ease as Nigeria’s
external reserves have sustained growth in one month.

Data from the CBN showed that the foreign currency reserves increased by 3.62
per cent to $34.37bn as of March 12, 2024 from $33.17bn recorded at the
beginning of February 2024.

The CBN recently announced a remarkable upswing in Diaspora remittances, soaring
by 433 per cent to reach $1.3b in February, compared to $300m in January.

CBN announces

Meanwhile, acting CBN Director, Sidi Ali, said the clearing of the FX backlogs
followed a significant increase in external reserves.



She said the month-on-month increase in the reserves was driven by a marked
advance in remittance payments by Nigerians overseas, as well as higher
purchases of local assets, including government debt securities by foreign
investors.

Related News
 * BREAKING: CBN clears $7bn forex backlogs
 * Binance executives to remain in detention for two weeks
 * CBN holds 294th MPC meeting Monday

Ali emphasised that meticulous efforts were undertaken to settle these
outstanding transactions.

The apex bank noted that independent auditors from Deloitte Consulting
meticulously assessed each transaction in the $7bn FX backlog, ensuring that
only legitimate claims were honored.

It noted that all invalid transactions were promptly flagged for further
scrutiny by relevant authorities.

Cardoso had recent underscored the importance of clearing the FX backlog to
restore credibility and confidence in the Nigerian economy.

According to the CBN statement, the clearance of the foreign exchange
transactions backlog aligns with the comprehensive strategy outlined during last
month’s Monetary Policy Committee meeting.

The primary objectives include stabilising the exchange rate and mitigating
imported inflation. By doing so, the CBN aims to bolster confidence in the
banking system and stimulate economic growth.



Cardoso was said to have further communicated the expectations during a
conference call with foreign portfolio investors, emphasising sustained
increases in Nigeria’s foreign currency reserves and improved liquidity in the
foreign exchange market.

“It was important that we go through an independent and credible process that
would determine the authenticity of those obligations, and, at this point, I can
tell you that we have now cleared all genuine, verifiable transactions. This
encumbrance to market confidence in the country’s ability to meet its
obligations is now totally behind us,” he added.

The CBN action signifies a pivotal moment in the financial landscape, paving the
way for a more resilient and stable economy.

As the nation moves forward, the successful clearance of the FX backlog serves
as a beacon of confidence for investors and businesses alike.

The statement partly read, “the Central Bank of Nigeria has announced that all
valid foreign exchange backlogs have now been settled, fulfilling a key pledge
of the CBN Governor, Mr. Olayemi Cardoso, to process an inherited backlog of
$7bn in claims.

“Clearance of the foreign exchange transactions backlog is part of the overall
strategy detailed in last month’s Monetary Policy Committee meeting to stabilise
the exchange rate and thereby curb imported inflation, spurring confidence in
the banking system and the economy. Cardoso used the MPC meeting and a
subsequent conference call with foreign portfolio investors to set expectations
for sustained increases in Nigeria’s foreign currency reserves and improved
liquidity in the foreign exchange market.”

Banks




Meanwhile, some banks have asked their customers to submit tax clearance for the
last three years when applying for Form A.

Form A, which is an application form designed by the Central Bank of Nigeria to
pay for service transactions such as school fees, medical fees, and more, allows
customers to purchase funds at the CBN or interbank rate to make payments for
these services.

An email notification from Standard Chartered to its customers revealed that
effective next month, they would be required to submit their TCC for the last
three years when seeking forex via banks.

The notice titled ‘Further Update On Tax Clearance Certificate’ reads,
“Following our previous communication on submission and verification of Tax
Clearance Certificate for all FORM A applications, we wish to remind you of the
requirement to provide your updated tax clearance certificate.

“Effective 1st of April, 2024, you are required to upload your 3 years TCC for
2021, 2022 and 2023 assessment year for all new and existing FORM A applications
on the CBN trade monitoring system (TRMS). All submitted TCC will be verified by
the state tax issuing authority before the application is approved.”

Fidelity Bank and Stanbic IBTC had also released similar circulars to their
customers, urging them to submit their TCC to get approval for foreign exchange
requests, such as Form A applications.

 A Tax Clearance Certificate serves as evidence of compliance with tax
obligations, ensuring adherence to the stipulations outlined in Section 85 (2)
of the Personal Income Tax Act, Cap P8, LFN 2004 (as amended).



Recalled that a global investment bank, Goldman Sachs, had recently predicted
that the Naira would appreciate to N1200 per US dollar in twelve months.

Goldman Sachs analysts, Andrew Matheny and Bojosi Morule disclosed this in their
recent analysis of Nigeria’s current economic realities.

The US-based financial institution highlighted the recent upward interest rate
adjustment by monetary authorities in Nigeria and a recent N1.6tn bill auction
by the central bank as signals that the country is turning the tables on a
previous unorthodox policy regime that hindered the naira from trading freely.

“These developments have prompted us to shift to a constructive outlook for the
Naira, which our FX strategists expect to appreciate to NGN 1200 vs. the USD in
12 months,” Goldman Sachs said.

Goldman Sachs backed the recent monetary policy by the Nigerian government to
rescue the Naira, which was described as ‘cheap’ or undervalued.

The analysts believed that the country’s foreign exchange crisis would be
resolved if the government saw to monetary policies.

The Central Bank of Nigeria has unveiled several monetary policies.



The latest was the new draft guidelines for Bureau de Change operators in the
last two months.

Also recently, Binance, a cryptocurrency, discontinued its Naira transactions
over regulatory clampdown by the Nigerian government.

Kindly share this story:

 * 
 * 
 * 
 * 
 * 
 * 

All rights reserved. This material, and other digital content on this website,
may not be reproduced, published, broadcast, rewritten or redistributed in whole
or in part without prior express written permission from PUNCH.

Contact: theeditor@punchng.com

Stay informed and ahead of the curve! Follow The Punch Newspaper on WhatsApp for
real-time updates, breaking news, and exclusive content. Don't miss a headline –
join now!

Join The Punch Newspapers Channel

Nigerians have finally been approved to earn in US Dollars; premium domains can
earn you as much as $17,000 (₦27Million) MONTHLY. Click here to learn more.



ONLINE FOREX, BITCOIN, BINARY AND PROP FIRM CHALLENGE TRADING EXPERT.
Do you require the service of a tested, trusted and experienced Forex-Trader,
who can help you profitably trade your Forex, Bitcoin and Binary accounts for
minimum of 10-20% weekly profit and also help you pass your prop firm account
challenges?. Click here for details


Download e-Copy




LATEST NEWS

 * 19 minutes ago
   
   
   LET THEM WORK, TINUBU ASKS N'ASSEMBLY TO MINIMISE MDAS SUMMONS

 * 27 minutes ago
   
   
   MAN RAPES MINOR FOR THREE MONTHS, BAGS 20-YEAR JAIL TERM

 * 28 minutes ago
   
   
   WHAT YOU SHOULD KNOW ABOUT DATA PRIVACY

 * 37 minutes ago
   
   
   TINUBU APPROVES NATIONAL HONOURS FOR 17 SLAIN SOLDIERS

 * 1 hour ago
   
   
   SUNS VS HAWKS PREDICTIONS: BETTING TIPS AND ODDS




TOP NEWS


N’ASSEMBLY PASSES STUDENT LOAN BILL, PROPOSES JAIL FOR DEFAULTERS

February 19, 2022


TINUBU PLACES THREE-MONTH BAN ON FOREIGN TRIPS FOR MINISTERS, OTHERS


NEMA BLAMES WATER SCARCITY AS FIRE RAZES FOUR LAGOS BUILDINGS


TINUBU PUSHES N60M ANNUAL PAY FOR SUPREME COURT JUSTICES


LAGOS TRANSPORTERS ACCUSE OP MESA OFFICERS OF EXTORTION, HARASSMENT


LP DEMANDS NLC PRESIDENT’S ARREST OVER PARTY SECRETARIAT INVASION


ACCESS BANK TO ACQUIRE NATIONAL BANK OF KENYA


UPDATED: CJN TO RECEIVE N5.39M MONTHLY AS REPS PASS JUDICIAL OFFICERS SALARIES
BILL


FULL NAMES: MAMU, 14 OTHERS, BDCS LINKED WITH TERRORISM FINANCING


UPDATED: NATIONAL ASSEMBLY PASSES STUDENT LOAN BILL



 * News
 * Sports
 * Metro Plus
 * Politics
 * Featured
 * Latest News
 * Business
 * Business & Economy
 * Opinion
 * Entertainment
 * Betting
 * Auto Famous
 * Auto Punch
 * Barka Da Sallah
 * Barrier Breakers
 * Breaking News
 * Brexit
 * Columns
 * Corona
 * Anti-corruption
 * Biafra
 * Boko Haram
 * Case Review
 * Court News
 * Court Trivia
 * Campus Champion
 * Celebrity
 * City round
 * Interview
 * Panorama
 * Opinion
 * Special Features
 * Spice
 * Technology
 * Famous Parent
 * Education
 * Cartoon
 * Columns
 * Diaspora
 * Advertise
 * Subscribe

Subscribe
 * 
 * 
 * 
 * 
 * 

punchng.com © 1971- 2024 Punch Nigeria Limited

 * About us
 * Advertise with us
 * Contact