Exchange Rate For Now N464.42/$1 As Customers Bid As High As N632/$1

The Naira depreciated against the US Dollar in the Investors and Exporters (I&E) window of the foreign exchange market on Tuesday, May 23, hitting a fresh low

Forex Supply of $15.2 Billion via Official Window by Nigeria

The Nigeria’s foreign exchange supply through the official window has increased to $15.2 billion in 2022, according to data from the Central Bank of Nigeria (CBN).  

This represents a 17.7% increase from the $12.9 billion recorded in 2021 and a 46.4% increase from the $10.4 billion recorded in 2020. 

The official window comprises the Wholesale Dutch Auction System (WDAS)/Retail Dutch Auction System (RDAS), the Interbank market, the Bureau De Change (BDC) market, and the Investors and Exporters (I&E) window, as well as the Small and Medium Enterprises (SME) and Invisibles segments. 

Breakdown of the forex supply through the official window in 2022 is as follows: 

CBN: Naira To Weaken Further As Dollar Demand Soars

 

The naira will weaken further at the parallel market this week after shedding nine per cent of its value last week, foreign exchange dealers and economic experts have said.

Last week, the local currency fell from 310 to 338 as acute shortage of the greenback lingered.

Naira to Weaken Further on Dollar Demand

The naira will weaken further on the back of rising dollar demand in the coming week, it has been learnt.

Other African currencies including the Kenyan’s shilling and Zambia’s kwacha are also seen weaker due to rising dollar demand from importers settling end of month payments, Reuters reports.

Foreign exchange dealers said the naira would fall further in the week ahead unless a major step was taken to inject liquidity.

The Central Bank of Nigeria had on Tuesday rejected calls to relax its forex rules, prompting the naira to weaken further to 306 against the greenback at the parallel market on Thursday.

Naira Sinks to 285/Dollar, CBN stops Forex Sale to BDCs

The Central Bank of Nigeria on Monday stopped the sale of foreign exchange to all the 2,786 licensed Bureau De Change Operators across the country.

The ban was announced by the CBN Governor, Mr. Godwin Emefiele, at a special media briefing held at the bank’s headquarters in Abuja just as the naira traded at 285 against the dollar at the parallel market on Monday from 278 on Friday.

He said with the decision, the CBN would no longer provide foreign exchange to the BDCs, adding that henceforth, all BDC operators must source for foreign exchange from autonomous sources.

The governor said any BDC operator that was not satisfied with the central bank’s decision should return their operational licence to the CBN and ask for the refund of their N35m deposit.

Nigeria raises N45bn in 5-20year bond

Nigeria sold 45 billion naira worth of naira-denominated bonds maturing in 2020 and 2034 at an auction on Wednesday, paying higher yields than at its previous auction in August, the Debt Management Office said on Thursday.

 

The amount raised at the auction was short of the 70 billion naira initially proposed by the debt office. Traders said the debt office was constrained by the higher yields that investors demanded and reduced the amount of debt sold.

Investors had asked for yields ranging from 13.5 to 20 percent for the 2020 bond and 14.5 to 20 percent for the 2034 debt, but the debt office decided to cut off the sale at 15.95 and 15.97 percent respectively.

The debt office sold 20 billion naira worth of 2020 debt at 15.95 percent yields, 57 basis points more than 15.38 percent at the last auction in Aug.

Nigeria Naira loses N1.26k to CBN’s policy on FX

The naira on Wednesday lost N1.26k or 0.64 percent against the US dollar at the inter-bank market following the Central Bank of Nigeria’s (CBN) policy restricting access to foreign exchange by importers of certain items.

 

Consequently, after trading on Wednesday, the local currency closed at N198.58k/$ compared with N197.32k/$ the previous day, according to data from Financial Markets Dealers Quotations (FMDQ).

US Interest rates raise mount Pressure on Nigeria’s Foreign Reserve, Naira

Plans by the United States (US) to raise interest rate would further devalue Nigeria’ currency, the naira and mount pressure on foreign reserves, analysts have said.

San Francisco Fed President John Williams said on Thursday that the Fed was likely to raise interest rates later this year, adding that he expects above-trend U.S. growth for the rest of 2015 after a weak first quarter.