Tag Archives: currency

Dollar rise continuously by RS1.50


The US dollar continues to grow stronger against the rupee as it had so far gained another Rs1.50 in inter-bank rate during early trading on Tuesday, Noble Reporters Media

It means the dollar is now available for Rs165.58 after the starting from the previous day’s level of Rs164.08.

On Monday, the dollar was up by 98 paisas by the end of the trading as it closed at Rs164.08 in inter-bank rate. It was available for Rs164 in open market with a gain of 50 paisas.

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Same was the case with euro and the pound sterling as both made substantial gains in the open market against the local currency.

The euro had reached the level of Rs182.77 after gaining Rs1.80, while the pound was available for Rs203.50 with a gain of Rs2.50.


#Newsworthy…

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Dollar rise than Rupees by 70 Paisas


The US dollar continued surging against the rupee as it had so far gained 70 paisas against the local currency in inter-bank rate, reported NRM on Monday morning.

The session started with the US showing a strong upward movement from the very beginning as it was currently available for Rs163.80.

Earlier on Friday [the last working day of the week], the dollar, pound and euro had a field day as they made huge gains against the rupee.

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According to the State Bank, the dollar closed at Rs163.10 in inter-bank rate after making a net gain of Rs1.30 during the daily trading.

The day began with a volatile start in the currency market in the morning, as the dollar price at one point soared to Rs163.30.

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It meant the dollar had gained Rs1.50 against the rupee during early trading after starting the session from the previous level of Rs161.80.

On the other hand, the pound sterling too grew stronger and ended the day at Rs200.74 after a gain of Rs2.28 in inter-bank rate.

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But it was euro which won the race as the currency saw its value going up by Rs2.82 and closed the session at Rs180.97.

This strong performance of dollar against the rupee came after it had a poor day against pound and euro in world market. The euro was up at $1.1105 from $1.1077 and the pound up at $1.2322 from $1.2319.


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Breaking: Naira plunges again, falls to N412 per dollar.


The dollar exchanged for N412 on Monday at the Bureau De Change segment of the market.

This followed a temporary suspension of sale of forex to the Bureau De Change operators in the industry by the Central Bank of Nigeria.


The Association of Bureaux De Change Operators of Nigeria had made a request to the CBN to grant it market holidays, given the ongoing challenges faced in the local and global economies due to the impact of the coronavirus pandemic.

The CBN granted the BDCs two weeks market holiday as requested.

According to the BDCs, there had been drastic decline in demand for forex due to the impact of the COVID-19 on the economy, as businesses were down and many people were not travelling.

The naira had also suffered setbacks as a result of crude oil price that fell drastically in the international market, which raised speculations among the BDC operators and Nigerians in general


#Newsworthy…

Nigeria’s refusal to devalue naira to fail again.


Four years after Nigeria tried and failed to stop its currency from collapsing, Africa’s biggest crude producer is again reacting to this oil crisis the same way it did in the recent past.

It worked out badly then as oil revenues, which account for 90% of foreign-exchange earnings, failed to rebound in time — leading to a depletion in the central bank’s fire power to defend the naira. It will likely fail again, if the West Africa nation sticks to the same template.


A surge in supply after OPEC failure to agree on production cuts with Russia has combined with reduced demand as the coronavirus pandemic disrupts economies globally. This means crude prices will remain low far longer than the central bank’s dwindling reserves can support the currency, which has weakened the least among major oil producing countries in 2020.

The naira weakened slightly last week after crude prices crashed, but since has remained largely stable. Nigeria’s President Muhammadu Buhari considers a stable naira as a keystone in his plan to bolster and wean the economy off oil. In a rare public acknowledgment he indicated that the pandemic could trigger a foreign exchange re-alignment after he met with his new economic advisory council, according to a statement emailed on Thursday.


Buhari agreed with the council, led by orthodox economist, Doyin Salami, that “tough economic decisions” may be needed to face the crisis,the presidency said . But the central bank, which has kept the currency in a quasi-peg to the dollar since mid-2017, has said it has no plans for a devaluation and threatened to investigate any local currency dealers suggesting otherwise.

“The administration will fight tooth and nail to avoid a devaluation in the short-term,” said Malte Liewerscheidt, vice president at Teneo Intelligence in London.


The reason — Nigeria’s import dependent economy has seen inflation accelerate to a 22-month high in February and could rise even faster if the currency weakens. Despite being oil rich, the West African nation imports almost 100% of its gasoline due to mismanagement of its domestic refineries. The fuel is then sold at subsidized prices to Nigerians. A weaker naira would raise the cost of those subsidies, which already consumes a chunk of government revenues at almost $2 billion a year.

The central bank has blamed speculators for any weakness in the currency and the Economic and Financial Crimes Commission said its agents are raiding hotels and bureau de change outlets to arrest offenders hoarding foreign currency, a tactic used after crude prices crashed in 2014.


The regulator “is poised to apply the toolbox developed during the 2014-16 oil price crisis,” said Liewerscheidt. “Providing high yields and preferential foreign-exchange access to portfolio investors while curbing demand by other market players through measures such as import bans and rationing.”

The local currency traded at 368 per dollar as at 4.30 p.m local time on Wednesday, about 1.9% weaker since the oil price crash. Prices for 12-month forward contracts have risen to 479 per dollar, suggesting investors see the naira falling 25% in that period.


The majority of investors and analysts surveyed by Bloomberg believe the naira will eventually be devalued by as much as 15% in the third quarter.

Reverting to past measures, Central bank Governor Godwin Emefiele plans to tighten capital controls by banning forex for hand sanitizers needed to curb the spread of the coronavirus, adding it to dozens of items already barred from accessing foreign exchange.


“Active management of foreign-exchange allocation could create scarcity and delays in allocation which will inevitably push importers to seek dollars at the unofficial segment,” Lagos-based Nova Merchant Bank said in a note to clients on Tuesday.

However, foreign-currency reserves have decreased by 20% in the past two years to the lowest since November 2017, giving little room for the nation to support the naira.


Goldman Sachs Group Inc. said last week it would take an exchange rate of 600 naira per dollar for Nigeria to generate a healthy current-account surplus at today’s oil prices.

A sustained period of low crude prices will weaken dollar liquidity and elevate banks asset risks, Moody’s Investors Service said.
Average yields on naira government bonds have surged 709 basis points to 12.6% since January, according to data compiled by Bloomberg, signaling outflows resulting from falling risk appetite of investors.

The bearish sentiment is expected to continue as coronavirus fears persist, Johannesburg-based Rand Merchant Bank said in a note on Wednesday.

“The market still grapples with limited dollar supply —as the oil price remains at abysmally low levels,” according to RMB.


#Newsworthy…

Goodbye to ‘Naira Notes’ as Nigeria set to launch new Currency in 2020.


In 2020, Nigeria will be saying bye bye to the Naira as its official currency, as it adopts a new currency called the ‘Eco’.

The ‘Eco’ is a single currency that will be adopted by West African countries as from next year as part of the sub-region’s greater structural reforms.


Here are 7 things you should know about the ‘Eco’ before it is officially adopted by the Federal Republic of Nigeria;

17 West African countries will adopt the Eco currency when it will be released. These countries are Benin Burkina Faso, Cape Verde, Cote d’Ivoire (Ivory Coast), The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Saint Helena, Senegal, Sierra Leone and Togo.

The Eco is expected to be adopted on the first of July 2020, but since the concept arose in 2003, the target launch date for the currency has been postponed several times: in 2005, 2010 and 2014. Countries in the franc region and other West African nations such as Nigeria and Ghana, which have their own currencies, have for decades debated creating their own currency, the Eco.


With the adoption of the Eco next year,

French speaking West African countries will ditch the CFA Franc, known as “Colonies Francaises d’Afrique,” which was established in 1945 and pegged to the Euro since 1999.

The official symbol for the Eco will be ‘Ec’.


According to reports, the Eco notes will feature great African legends and showcase features of West Africa.

The official bank for the sub-region’s currency will be known as the Central Bank of West Africa (CBWA).

There is no official value for the Eco currency yet.

A specific launch date for the Eco has not yet been announced but it has been speculated that January 2020 is when the single currency will be launched.


#Newsworthy…

(Check) Firm launches easy crypto currency trade.

Geared towards solving the challenges faced by Crypto currency market such as increased demands with little or no means to satisfy such demands and need for trade, fraudulent activities by crypto holders both from the buyer and the seller, a new Crypto currency firm, Bitflip, has been launched to help bring about ease in trades and also help meet the high demand of the market by creating a secure medium through which private and public companies and also individuals can transact successfully without any hitch.

Bitflip is a registered platform bond under the laws of the state and has been in existence for over 3 years. However, through out these period, Bitflip has been able to meet the high demands and also curb some excesses faced by traders in the crypto market.

An interesting feature of the Bitflip website is the highly optimized site settings which gives it the ability to run smoothly and efficiently on any mobile device and also the user friendly interface, which gives an easy to read and understand guide on how trades can be effectively carried out on the site.

“Also after much research and testing the Bitflip website proved to be a very easy in navigation and also user friendly, having a well secured database through which individual information are kept secret and private. Among this is also the use of modern technology in creating a light weight and fast loading website with no pop up ads and irrelevant information”, says Olayinka Ajibola, Founder of Bitflip.

“After proper examination and observation, we decided to ease these challenges faced by the crypto community at large by creating the Bitflip website. The sole aim of this platform was to help bring about ease in trades and also help meet the high demand of the market by creating a secure medium through which private and public companies and also individuals can transact successfully without any hitch.

“Bitflip website also offers a statistical data analysis of transactions carried out and also provide an online customer service interface through which trades can be completed effectively in any of the following currencies, BITCOIN, ETHEREUM, LITE COIN, and RIPPLE.

“Also we would note that the BITFLIP platform offers the best rates and also gives users a friendly feel accompanied by a very fast and reliable service”, Olayinka noted.

#Newsworthy…