Nigeria Economy: Naira gains 17%, Sells for 310/dollar

The naira rose by 17.3 per cent on Tuesday against the dollar at the parallel market to 310 from 375, which it traded on Monday.

 

The naira had been on a free fall in the last two weeks, peaking at 391 against the greenback at the parallel market last week Thursday. The local currency, however, began a gradual recovery on Friday.

Foreign exchange dealers told our correspondent on Tuesday that the naira’s recovery could be linked to the gradual inflows of foreign exchange into the forex market.

Nigerian Banks Struggle to meet $5 bn Forex Obligations

LAGOS — Nigerian banks are struggling to meet $5 billion foreign exchange obligations to importers and correspondent banks, reflecting the worsening foreign exchange situation in the country.

This was disclosed, yesterday, by Renaissance Capital in a report entitled: “Nigerian banks struggling for FX liquidity.”

 

The report stated that due to the inability to access foreign exchange from the Central Bank of Nigeria (CBN), banks  are having challenges sourcing dollars to meet outstanding foreign exchange, FX, obligations to importers and correspondents banks ranging from $2 billion to $5 billion.

Tiger Brands’ Nigerian Arm hit by Naira Weakness

Tiger Brands, South Africa’s biggest consumer foods manufacturer, reported flat first-half earnings on Wednesday, weighed down by its operations in Nigeria.

Tiger Brands, which makes cereal, energy drinks, pasta and rice, said diluted headline earnings per share fell by 1 percent to 837 cents in the six months ended March. Headline earnings per share is the main profit gauge in South Africa that strips out certain one-off items.