Nigerian interbank rate flat, central bank squeezes liquidity – Reuters

LAGOS, Sept 30 (Reuters) – Nigeria’s interbank lending rates were flat at around 15.25 percent for overnight lending on Friday, even as market liquidity dropped significantly because of persistent treasury bill sales by the central bank.

Traders said market liquidity should be below 100 billion naira due to consistent cash withdrawal by the central bank via treasury bill sales, although data on commercial lenders’ cash balance with the central bank was not available on Friday.

Traders said the central bank had sold around 1.2 trillion naira ($3.73 billion) in open market operations (OMO) treasury bills at 14 auctions in one month in its bid to reduce liquidity in the banking system and curb pressure on the forex market.

“Market liquidity is very thin,” one dealer said.

Traders said many banks have been resorting to the central bank’s standing lending facility to cover their positions.

Nigeria’s naira fell to an all-time low of 490 to the dollar on the parallel market early on Friday before recovering to 475 amid a dollar shortage in Africa’s largest economy.

The naira closed flat at 305.25 to the dollar on the official market, the same level it has held for the last two weeks thanks to support from the central bank.

“We expect the interbank lending rate to remain at the present level next week as the central bank is expected to continue its liquidity management strategy to curb pressure on the forex market,” one dealer said. ($1 = 321.75 naira) (Reporting by Oludare Mayowa,; Editing by Alexis Akwagyiram and Mark Trevelyan)

 

Breaking: Naira Claws back from all time Low against the Dollar

Lagos, Nigeria Sept 30 (FxMallam) – The Nigerian Naira closed Friday trading at N472 to the dollar after a week of free fall that saw the naira fall to as low as 490 against the greenback. 

Confusion had plagued the market with reports suggesting that the Naira might fall to 500 against the dollar by weekend. But the local currency staged a remarkable turnaround late Friday due to concerns that the dollar was heading towards bubble territory.

The Central Bank of Nigeria(CBN) has been selling foreign exchange at the interbank market to ease liquidity, dipping into the country’s reserve which has depreciated to an 11-year-low of $24.61 billion as at September 27, 2016.

One dealer of hard currency we spoke to at the International Airport mentioned that the deal between Travelex and CBN could in fact the Naira continue to appreciate over the next few weeks as evidence of the intended benefits were starting to be seen.

Nigeria to cut taxes for small firms – Reuters

ABUJA, Sept 29 (Reuters) – Nigeria plans to lower taxes for small and medium-sized companies to create more jobs, the finance ministry said on Thursday.

Africa’s biggest economy is struggling with recession as low oil prices have hammered public finances, halting construction work of firms which have been laying off workers.

“The federal government is set to reduce the income tax rates payable by Small, Micro and Medium Enterprises (SMMEs) in the country to encourage more start-ups in Small, Micro and Medium Enterprises, boost the profitability of the existing ones, generate new jobs and make higher contribution to the Gross Domestic Product (GDP),” the ministry said. (Reporting by Ulf Laessing; Editing by Dominic Evans)

 

Naira Down To N480/$ As Speculators Mop Up Forex – Leadership

The naira hit another new low at the parallel market yesterday as dollar scarcity saw the value of the local currency plummet to N480 to the greenback fueled by increased demand from speculators from within and outside the country.

From N440 which it was at the beginning of the week, shortage of dollar saw the value of the naira drop to N480 to the dollar, N590 to the British Pound and N510 to the Euro. At the interbank market, the value of the currency appreciated to N305 according to figures quoted by FMDQ.

The Central Bank of Nigeria(CBN) has been selling foreign exchange at the interbank market to ease liquidity, dipping into the country’s reserve which has depreciated to an 11-year-low of $24.61 billion as at September 27, 2016.

“Dollar is very scarce in the market right now because many people don’t know how low it will fall in the near term, so people are holding on to their hard currencies in order to watch the direction of the market,” one dealer said.

President of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe, stated that traders  from neighbouring countries and some importers had been moving in recently, mopping up dollars and putting pressure on the naira in a possible speculative bid.

Nigerian minister denies involvement in alleged MTN money transfer – Reuters

LAGOS, Sept 29 (Reuters) – Nigeria’s minister for industry, trade and investment dismissed accusations on Thursday that he was involved in an alleged illegal transfer of $13.92 billion by South African telecoms giant MTN.

A parliamentary motion named Okechukwu Enelamah earlier this week, saying MTN had used him and others to move the money out of Nigeria between 2006 and 2016.

MTN denied the allegations on Wednesday and Enelamah’s office issued a statement a day later saying the accusations were “without merit and baseless”.

“At no time was Dr. Enelamah in a position to transfer funds out of Nigeria on behalf of MTN Nigeria, and at no time did Dr. Enelamah transfer any funds out of Nigeria on behalf of MTN Nigeria,” the statement added.

The Senate, parliament’s upper house, has agreed to investigate the allegations made by one of its members against MTN, which has suffered a series of setbacks in its biggest market.

The Senate’s move comes just three months after the South African firm agreed to pay a fine of 330 billion naira ($1.02 billion) to end a dispute over unregistered SIM cards.

($1 = 323.2500 naira) (Reporting by Alexis Akwagyiram; Editing by Angus MacSwan and Andrew Heavens)

 

African Markets – Factors to watch on Sept 30 – Reuters

NAIROBI, Sept 30 – The following company announcements, scheduled economic indicators, debt
and currency market moves and political events may affect African markets on Friday.
– – – – –
EVENTS:
*Zambia’s central bank announces its latest decision on the
benchmark lending rate and inflation figures.
* Uganda releases inflation figures.
* Kenya releases inflation figures.

GLOBAL MARKETS
Asian stocks extended losses on Friday as worries about the
health of Deutsche Bank weighed on financial shares and as
oil prices inched back from near-one month highs on
scepticism over OPEC’s new plan to curb output.
MSCI’s broadest index of Asia-Pacific shares outside Japan
lost almost 1 percent and was on track for a
0.8 percent drop for the week.

WORLD OIL PRICES
Oil prices dropped on Friday as investors took profits
following a 7-percent rise in the last two sessions, amid
doubts that OPEC’s first planned output cut in eight years
would make a substantial dent in the global crude glut.

EMERGING MARKETS
For the top emerging markets news, double click on

AFRICA STOCKS
For the latest news on African stocks, click on

SOUTH AFRICA MARKETS
South Africa’s rand weakened on Thursday as data showed
credit demand growth slowed more than expected in August,
underscoring the slowdown in Africa’s most industrialised
economy ahead of credit rating reviews by year-end.
Stocks closed higher, as the weaker currency benefited
‘rand-hedged’ companies with high proportions of foreign
earnings.
At 1557 GMT, the rand traded at 13.8725 per dollar,
1.9 percent weaker than its New York close on Wednesday.

NIGERIA MARKETS
Nigeria’s naira tumbled more than five percent to another
record low against the dollar on the black market on
Thursday, as a dollar shortage persisted.
Low prices for oil, the country’s top foreign currency
earner, have drained the country’s forex reserves, which hit
an 11-year-low of $24.61 billion on Tuesday.

KENYA MARKETS
The Kenyan shilling was steady on Thursday, and was
seen gaining ground, supported by dollar flows from the
horticulture sector, traders said.

KENYA TRADE
Kenya will retain duty-free access to the European Union for
its products, its trade minister said on Thursday,
reassuring exporters who feared problems in clinching a deal
between the EU and the East African Community could lead to
tariffs.

MOZAMBIQUE IMF
Mozambique’s draft budget for 2017 will strengthen its
finances, the International Monetary Fund (IMF) said on
Thursday after a visit to the southern African nation.
The Fund last month demanded an external forensic audit of
Mozambique’s public debt to regain investor confidence after
a scandal over more than $2 billion in secret loans.

NIGERIA CRISIS
Famine-like conditions in the former stronghold of Boko
Haram militants in northeast Nigeria could kill 75,000
children over the next year if they do not receive aid, the
United Nations children’s agency said on Thursday.

BURUNDI POLITICS
The head of one of Burundi’s opposition parties has been
arrested for collaborating with “armed gangs”, police said
on Thursday, joining a list of activists and political
figures detained since the start of a political crisis.

TANZANIA ECONOMY
Tanzania’s economy expanded 7.9 percent in the second
quarter, driven by the mining, manufacturing and energy
sectors, the state-run National Bureau of Statistics said on
Thursday.

Nigerian naira hits new low as dollar shortage persists – Reuters

LAGOS, Sept 29 (Reuters) – Nigeria’s naira tumbled more than five percent to another record low against the dollar on the black market on Thursday, as a dollar shortage persisted.

Low prices for oil, the country’s top foreign currency earner, have drained the country’s forex reserves, which hit an 11-year-low of $24.61 billion on Tuesday.

“Dollar is very scarce in the market right now because many people don’t know how low it will fall in the near term, so people are holding on to their hard currencies in order to watch the direction of the market,” one dealer said.

Traders from neighbouring countries and some importers had also been moving in recently, mopping up dollars and putting pressure on the naira in a possible speculative bid, Aminu Gwadabe, president of the association of bureau de change operators told Reuters. (Reporting by Oludare Mayowa; Editing by Andrew Heavens)

,

Dollar to Naira Rate Black Market September 30 2016

Dollar to Naira Rate Black Market September 30 2016. Today’s Naira Black Market Exchange Rates. Dollar to Naira. Pounds to Naira. Euros to Naira.

These are the prevalent rates for Lagos. Actual rates may vary slightly based on vendor. Rates are updated during the day as they change.

NAIRA (N)

USD ($)

EURO (€)

GBP (£)

BUY/SELL

BUY/SELL

BUY/SELL

30/9/2016

470/472

480/490

575/585

29/9/2016

475/480

495/510

570/580

28/9/2016

452/460

480/490

560/570

27/9/2016

440/445

475/485

555/565

26/9/2016

437/445

465/480

550/565

Sending money to Nigeria? Visit Sharemoney for the best rates. New customers get a free $20 gift card when you use the promo code New20.

Check out trending news stories that could affect today’s black market rates at fxmallam.com/news/

African economic growth to dip to 1.6 pct this year – World Bank – Reuters

ABIDJAN, Sept 29 (Reuters) – Economic growth in sub-Saharan Africa is likely to slip to 1.6 percent this year, from 3 percent in 2015, due to continuing woes in the continent’s largest economies South Africa and Nigeria, a World Bank report said on Thursday.

Growth will pick up slightly to 2.9 percent next year, according to “Africa’s Pulse”, the Bank’s twice-yearly analysis of economic trends, which was unveiled in Ivory Coast’s commercial capital Abidjan. African economies are expected to expand by 3.6 percent in 2018, it said.

(Reporting by Joe Bavier; Editing by Tim Cocks)

 

Emefiele urges positive reportage of economic issues – Today

The Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, yesterday called for positive reportage of the Nigerian economy by journalists.

Emefiele made the call while delivering a keynote address at the 22nd Finance Correspondents and Business Editors’ Seminar in Abakiliki.

The seminar was on the theme: “Financing Nigeria’s non-oil sector for sustainable economic development.” He said that foreign investors formed their perception of the Nigerian economy based on what they read and hear in the media.

He said that the CBN had gone beyond monetary and price stability to developmental activities that would stimulate economic growth.

He said these developmental initiatives were necessary because Nigeria’s developing economy was inherent with developmental challenges.

Emefiele, who was represented by the Director for Monetary Policy Department, Mr. Moses Tule, noted that the apex bank had committed N220 billion into agriculture, Micro, Small and Medium Enterprises (MSMEs) and infrastructure.

He said that some of the interventions were the Agricultural Credit Guarantee Scheme Fund (ACGSF) and the Commercial Agricultural Credit Scheme (CACS).

He added that the interventions were not intended to crowd out financial institutions in credit delivery but to serve as incentives to propel lending at reasonable rates to the real sector.

Governor Dave Umahi of Ebonyi State, while declaring the seminar open, promised Nigerians a bumper harvest of rice from the state.

Umahi said that the state was involved in various agricultural programmes to meet food sufficiency for its citizens.

He also said that the state government would collaborate with a private investor to resuscitate the state’s cement company–Niger Cement.

Umahi added that Niger Cement, when fully operational, would provide employment opportunities for its citizens and contribute to the economy of the state and the nation.