Business

FG Moves To Digitise FX Transactions To Punish Naira Speculators

Published

2 months ago

October 24, 2023

In the near future, the federal government will automate transactions in the entire foreign exchange market to tame wide arbitrage and punish naira speculators.

Wale Edun, Minister of Finance and coordinating minister of the Economy, mentioned this during the first-panel session at the 29th Nigeria Economic Summit (#NES29).

His comment came shortly after President Tinubu had told summiteers that he has taken steps to deal with liquidity in the fx market and made a commitment to sort out all backlog.

According to him, all dealings in the fx market, from the official to the money changers where huge arbitrage has consistently occurred, will be thoroughly monitored and offenders fished out and punished.

He also disclosed that the president signed two executive orders last week.

One of them is an executive order that allows forbearance for all the cash in the economy to come in and formally boost the money supply legally.

There’s another executive order that allows domestic issuance of foreign currency issues so that it will allow incentive to provide that foreign exchange for whatever source.

He said alongside this and part of a broader sort of review, there is a revamping of the foreign exchange market, which he said will be unfolded as time goes.

He admitted that Nigeria’s foreign exchange market is not functioning effectively due to illiquidity and that the government is prepared to do everything required to change the status quo.

“Foreign exchange market will simplified and reformed such that all legal and legitimate transactions will fall within the purview of the authorities and in the formal foreign exchange market. Anything outside that will be illegal, a criminal offence and will be punished,” Edun stated.

In his comment, Yemi Cardoso, Governor of the Central Bank of Nigeria (CBN) assured that the apex bank, going forward, will take its objective of price stability “very seriously indeed.”

He said the plan is to have a foreign market that is fit for purpose and works for everybody, which can be predictable and with no opacity.

“We are going to come out with an elegant document that will tell you the rules,” the governor assured.

Business

Naira crumbles to ₦‎1,200 per dollar in black market

Published

2 days ago

December 8, 2023

Desmond Ukafor

Naira falls to N1200/$ in parallel market, gains 11% in NAFEM
Naira falls 18% to N951.22/$ in NAFEM

The naira depreciated yesterday to N1,1200 per dollar in the parallel market from N1,172 per dollar on Wednesday.

However, the naira yesterday appreciated to N843.07 per dollar in the Nigerian Foreign Exchange Market (NAFEM).

Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N843.07 per dollar from N951.22 per dollar on Wednesday, indicating 11 percent or N108.15 appreciation for the naira.

As a result, the gap between the official and parallel market exchange rates widened to N356.93 per dollar yesterday from N220.78 per dollar on Wednesday.

Mr. Yakubu Ahmed, a black market trader said high demand for dollars still persists despite traders’ anticipation of a positive change in the trend of the foreign exchange rate.

“There is still high demand for dollars but little access to it. I sold a dollar today for N1,200 and bought for N1,180.

“Though we anticipate a positive change from the current trend of depreciation of the naira.

“But most traders are still worried that the naira might be in a falling trend for a long period due to decline in foreign exchange inflows which is also affecting the official market.”

Business

We Have Removed All Obstacles Hindering Business In Nigeria – Tinubu

Published

3 weeks ago

November 21, 2023

Ifunaya Emeka

President Bola Tinubu has declared that his administration has removed all obstacles hindering businesses in Nigeria.

Tinubu said this while speaking to international investors on Monday, in Berlin, Germany.

This was disclosed in a statement issued by Ajuri Ngelale, the Special Adviser to the President on Media & Publicity.

Tinubu also told the international investors that beyond Nigeria’s natural resources, the people of Nigeria, who are highly educated, highly skilled, and naturally industrious, are the primary asset and advantage the country wields over other nations in the global race for new investments.

The Nigerian leader noted that while promoting the rule of law is crucial for attracting foreign investments, Nigeria’s energetic youth population and well-educated populace represent the greatest incentive provided to investors toward the mutually-beneficial replication of China’s economic resurgence.

“We are dogged in our pursuit of natural gas development today, in tandem with hydrogen production for tomorrow. The world knows Nigeria as a leader in the energy sector. Our vast gas deposits and business-friendly environment make us an attractive investment destination.

“But we are going a step further now. We are creating fiscal responsibility and tax reforms as we reform our financial institutions to expeditiously accommodate foreign investments,” Tinubu said.

”We are eager and ready to partner with you. We have the youngest, largest, and most vibrant youth population in Africa. Equally, we have every ingredient required in the making of a modern economy: a well-educated population, a massive market, and the political will to bring it all together under my leadership.

“Nigeria has consolidated on its democracy with several consecutive handovers of power. There is stability and predictability in the socio-political development of our country, which provides a conducive atmosphere for business operations and investment. Your money is safe.

“Since I assumed office in May 2023, we have embarked on transformative changes, removing all obstacles hindering businesses. We are reforming the economy based on the principle and philosophy of good governance,” Tinubu said.