The central bank had devalued the official exchange rate to N380/$1 from N360.1/$1. The adjustment occurred on Thursday, August 6th, 2020. The adjustment is thought to be a move towards unification of the multiple exchange rate windows. The CBN has adjusted the official exchange rate twice this year. The first one was from N307/$1 to N360/$1 and then just last week, from N360/$1 to N380/$1. The parallel market exchange rate has averaged N475/$1 more recently. According to Bloomberg, “Goldman Sachs Group Inc. this week said a significant devaluation of the naira is likely in 12 to 18 months to stabilize Nigeria’s external accounts. An exchange rate of 500-550 per dollar should bring about the desired balance”. The direction of the exchange rate will be determined by oil prices, growth in the global economy, and Nigeria’s forex policies. The exchange rate disparity is currently due to low forex supply, caused in part by the Covid-19 pandemic which has kept foreign investment out of the country limiting the supply available to the government. If this situation improves, then we could see a convergence between the parallel market to the NAFEX market with the former strengthening towards the latter. However, a further devaluation could occur if forex scarcity persists and corporates find it difficult to purchase forex at the NAFEX(I&E) window driving up demand at the black market. https://nairametrics.com/2020/08/13/nigerias-should-expect-a-significant-devaluation-to-n550-1-goldman-sachs/
The foreign exchange (forex) policy of the Central Bank of Nigeria (CBN) has again come under criticism and this time, from a foreign investor. Recall that recently, the CBN was hit hard by the Nigerian Economic Summit Group (NESG), saying the current FX policy of the banking sector regulator was making things difficult for the country rather than make them better. Why manufacturers are protesting CBN forex policy – The Central Bank of Nigeria (CBN) has removed third parties or middlemen from its Secondary Market Intervention Sales (SMIS) forex window through Form M forex purchases.But, the policy does not go down well with manufacturers, who argue that it is inimical to the survival of manufacturing concerns and should, therefore, be reversed. “The CBN shall deliver US dollars sold to the banks to their Correspondent Bank Account used for WDAS transactions; the CBN shall effect delivery of foreign exchange purchased by each authorised dealer within one business day (T+1) after the day of the auction result; and a business day shall be defined as a day in which banking business is carried out in Nigeria.” CBN Releases New Policy Actions in the Foreign Exchange Market. Forex: 6527 VIEWS : Forex : 6527 VIEWS Monday, February 20, 2017 5:50 PM / CBN . In continuation of efforts to increase the availability of Foreign Exchange in order to ease the difficulties encountered by Nigerians in obtaining funds for Foreign Exchange transactions, the Central Bank of Nigeria (CBN) is providing direct ... How CBN Forex Ban Policy Can Help Boost Maize Production. Agribusiness. By Oluseyi Taiwo-Oguntuase On Aug 7, 2020 12:01 AM. 0 111. Share. LAGOS – When the Federal Government, through the Central Bank of Nigeria (CBN), directed all authorised dealers in forex to immediately stop processing Form ‘M’ for maize importation, it came as a cheering news for some, while some are of the opinion ... Foreign investors have basically stopped inflowing forex into the control as yields have crashed and repatriating it is now a major challenge. READ: Nigeria’s inflation rate jumps to 12.82%, highest in 27 months. The other option: Deciding against increasing MPR means the CBN had to consider a dovish policy, which requires that they cut monetary policy rates and intervene in sectors of the ... CBN's announces new forex policy. 4 years ago 152326 views by Dokunola - Only authorised dealers will be allowed to trade on interbank markets henceforth - CBN says it will release guidelines to primary dealers on Friday. The Central Bank of Nigeria (CBN) has officially announced a new foreign exchange policy and has listed some implications of new development. The implication of this is that ...
Face Off: Is The CBN Forex Policy Good Or Bad For The Nation -- Pt 1
For more information log on to http://www.channelstv.com The Central Bank of Nigeria has made good its promise to implement the liberalisation of the Foreign Exchange market and improve liquidity. Mixed reactions have continued to trail the Central Bank ... For more information log on to http://www.channelstv.com The Governor of the Central Bank of Nigeria, Godwin Emefiele responded to the 11-point raised by the Chairman of Stanbic IBTC Bank, Atedo Peterside that “it is time for the Central Bank of ... The Big Hard Fact on #HardFacts with Sandra Ezekwesili (@SEzekwesili) & Aghogho Oboh (@aghoghooboh) #VisualRadioNG #NigeriaInfo993. This video is unavailable. Watch Queue Queue. Watch Queue Queue For more information log on to http://www.channelstv.com Black market forex traders are in denial and jittery. Manufacturers appear confused. Manufacturers appear confused. The Central Bank says the policy would help boost the Naira. This video is unavailable. Watch Queue Queue. Watch Queue Queue