Naira set to appreciate as speculators eye rand, others

The naira could appreciate on the parallel market in the coming days due to recent forex measures announced by the Central Bank of Nigeria (CBN), foreign currency dealers said yesterday. The naira has exchanged at N362/$ on the parallel market in the last two days after recovering from N363 per dollar last week. The local currency’s strengthening comes amid reports yesterday that Derivative traders were hedging their bets on five emerging markets where they see the greatest probability of declines in the next month. According to Bloomberg, the currencies of…

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Naira bid-offer spread widens amid dollar scarcity concerns

The gap between Nigerian banks’ bids to buy and sell the naira to investors is widening due to a tight supply of dollars in the market, suggesting the local currency is coming under international pressure even as the government finances improve, Reuters reported yesterday. According to the news agency, traders said some lenders are seeking to sell the naira at 365 per dollar to investors, while others offered to buy at 359. They further stated that lenders were trading between themselves in the middle at 362 per dollar. The currency…

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JUST IN: China signs 15bn yuan currency swap agreement with Nigeria

After a two year intensive negotiations, talks between the Central Bank of Nigeria ( CBN) and Peoples Bank of China on currency swap, the deal was effectively sealed by both countries last Friday. A statement issued by CBN Acting Director ( Communications) Isaac Okorafor on Thursday, which confirmed execution of a bilateral currency swap agreement with the Peoples Bank of China (PBoC) said, CBN governor, Mr. Godwin Emefiele, led CBN officials while PBoC Governor, Dr. Yi Gang, led Chinese team at the official signing ceremony in Beijing, China which held…

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CBN: Firms expect naira appreciation as business confidence improves

Investors in the country expressed more optimism on the macro economy in March 2018, when compared with the level recorded in February just as they are expecting the naira to appreciate in the coming months, according to the Central Bank of Nigeria’s (CBN) monthly Business Expectations Survey report. The report, posted on the apex bank’s website yesterday, also indicated that the respondent firms expected inflation rate to fall in both the current and next months, with confidence indices of -13.4 and -15.8 points for the current and next months, respectively.…

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Gwadabe: Portfolio investors’ likely exit threatens naira’s stability

Foreign investors, who invested billions of dollars in the equities market, are likely to exit the market ahead of the 2019 elections, President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, said yesterday, adding that this could threaten the naira’s continued stability. Speaking to finance journalists in Lagos, he said the negative implication of exit of portfolio investors from the local bourse could trigger further external sector imbalances in a run-up to 2019 elections even as equity market imbalance is likely to increase. He said the:…

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AfDB: Naira, others to appreciate in 2018, 2019

Countries in the West African sub-region with flexible exchange rate regimes such as Nigeria and Ghana are likely to see their currencies (naira and the cedi) appreciate in 2018 and 2019 due largely to anticipated higher global commodity and crude oil prices, the African Development Bank (AfDB) has stated.   The bank made this forecast in its 2018 African economic outlook released yesterday.   According to the AFDB: “West Africa has two dominant exchange rate regimes: flexible and pegged. Anglophone countries generally have flexible regimes, while francophone countries tend to…

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‘How multi-million 132kV double circuit naira accessories disappeared’

The Transmission Company of Nigeria (TCN) has provided an insight into how two spans of conductors, insulators and other accessories from the towers and transmission lines on the vandalised 132kV Double Circuit transmission line disappeared.   The line is being constructed by Niger Delta Holding Power Company (NDHPC) from New Haven through 9th Mile to Nsukka.   From the assessment of the site of the incident by engineers, the TCN, in a statement, said suspected vandals carted away two spans of conductors, insulators and other accessories from the towers and…

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Naira: FDC predicts minimal impact of Fed hike

Contrary to the opinion held in some quarters, should the US Federal Reserve (Fed) hike interest rates this year as is widely expected, the move will only have a minimal impact on the exchange rate of the naira, Lagos-based financial advisory firm, Financial Derivatives Company Ltd (FDC) has said.   In a report obtained by New Telegraph, the FDC stated that although a hike in interest rate by the Fed may trigger capital flight from Nigeria thus putting pressure on the naira, the country’s rising external reserves as well as…

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Nigeria, Britain and the naira

The Nigeria’s history won’t be concluded without mentioning the United Kingdom (UK). The latter has hitherto remained a household name when discussing the former, particularly in the aspect of the country’s politics as well as economy.   It’s noteworthy that the UK comprises mainly the Great Britain and the Northern Ireland. If further split, the former consists of England, Scotland and Wales; among these three, the first two countries majorly constitute the Britain. Owing to both the population and landmass’ percentage Britain occupies in the bloc, the UK is usually…

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Naira as trade currency

Unexpectedly the cheering news filtered in as the United Kingdom announced its preparedness to include the Naira as one of three currencies in West Africa to be accepted for trade transactions by the British Government. Specifically, this information was released by no other than Paul Arkwright, the British High Commissioner to Nigeria. He explained that the UK Export Finance (UKEF) will now be able to provide loan guarantees through local banks in Naira to support Nigerian businesses procuring goods and services from the UK as a practical measure to underwrite…

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