, , , ,

Naira FOREX Rates April 28th 2016 – Parallel Market



NAIRA (N)

USD ($)

EURO (€)

GBP (£)

BUY/SELL

BUY/SELL

BUY/SELL

28/4/2016

318/321

359/363

449/454

27/4/2016

319/322

359/363

448/453

26/4/2016

319/322

358/363

448/453

25/4/2016

319/322

358/363

448/453

22/4/2016

318/321

359/363

449/453

 

, , , ,

Naira FOREX Rates April 27th 2016 – Parallel Market



NAIRA (N)

USD ($)

EURO (€)

GBP (£)

BUY/SELL

BUY/SELL

BUY/SELL

27/4/2016

319/322

359/363

448/453

26/4/2016

319/322

358/363

448/453

25/4/2016

319/322

358/363

448/453

22/4/2016

318/321

359/363

449/453

21/4/2016

319/322

360/365

445/450

 

, , , ,

Naira FOREX Rates April 26th 2016 – Parallel Market



NAIRA (N)

USD ($)

EURO (€)

GBP (£)

BUY/SELL

BUY/SELL

BUY/SELL

26/4/2016

319/322

358/363

448/453

25/4/2016

319/322

358/363

448/453

22/4/2016

318/321

359/363

449/453

21/4/2016

319/322

360/365

445/450

20/4/2016

319/322

355/360

445/450

 

Naira devaluation: Nigerians divided over Buhari’s stance – Punch

Tobi Aworinde

President Muhammadu Buhari’s insistence not to devalue the naira has caused a heated debate among Nigerians online.

Buhari, speaking at a meeting of the Council of Retired Federal Permanent Secretaries at the Presidential Villa on Friday, had reiterated his stance, arguing that those canvassing for the naira devaluation had yet to convince him of the inherent benefits for ordinary Nigerians.

He said, despite the clamour, he would stand by the position he took against devaluation during his tenure as military Head of State.

Buhari was quoted as saying, “When I was military Head of State, the International Monetary Fund and the World Bank wanted us to devalue the naira and remove petrol subsidy but I stood my grounds for the good of Nigeria.

“The naira remained strong against the dollar and other foreign currencies until I was removed from office in August, 1985 and it was devalued.

“But how many factories were built and how many jobs were created by the devaluation? That is why I’m still asking to be convinced today on the benefits of devaluation.”

But the President’s unwavering position drew the ire of some Nigerians on social media.

Commenting on the PUNCH website, Ola wrote, “The government needs to face the reality of the situation. The dollar, at the official rate of N197, is scarce and most manufacturers and importers are unable to access the official market and, therefore, source from the black market at a devalued rate of around N320.

“Businesses have already repriced their products/services with the black market rate and inflation has now reached double digits. A select few are benefiting from the unusually wide gap between official and black market (rates).

“Government should stop the denial game about the exchange rate crisis. The economic team should be more solution focused with proactive policy directions and be bold enough to acknowledge the situation and give the president the right advice and options.”

Another Nigerian, Izonkeme, wrote, “Nigerians are wailing and crying on a daily basis. Parents can’t afford school fees of university students as result students are being chased out from exams, leading to riots and subsequent death of some brilliant students.

“Yet, he is comparing his days of 1983 to this present day, when the world is in the jet age. His singular reason for not wanting to devalue the naira has gone beyond every reasonable doubt that of a truth he lacks the foresight to take Nigeria to the next level. God will salvage us from this man with necrotised ideologies.”

EarthVoice, also expressed frustration, saying, “A bag of pure water is sold at N200. A litre of petrol that was N86 is now sold at N250, The dollar that was N150 is now N350. Is there any other devaluation that those calling to devalue the naira want? The naira has automatically been devalued.”

Similarly, Mosley argued that the naira had naturally been devalued.

The user wrote, “The government should now formulate policy to revalue it; that should be the concern and challenge of Mr. President. Because to say the naira will not be devalued is like flogging a dead horse. The naira has devalued itself, full stop.”

On Facebook, Eberechukwu Ekwenta also said, “With inflation at 12.5 per cent, already naira has devalued itself. The naira is now competing with the Zimbabwean dollars. APC, shame.”

Opeyemi Onifade also said, “The naira is already devalued. I think formalising the devaluation of the naira is imperative. The naira shouldn’t be valued at 190 and 305 simultaneously in the same economy.”

Gerald Essien, noted that though the President had refrained from blaming the previous administration, he should stop calling to mind the unpleasant history of Nigerians.

He added, “Our beloved President, please get to work and don’t remind us of how bad it started when there isn’t any hope of getting better yet.”

Similarly, Mac Henry Anonde wrote, “Make it strong again and forget blaming the past government.”

Another Facebook user, Ememobong Udom, wrote, “Big lie! It was during your time that the naira got devalued due to your poor economic policies.”

Chinedu Iwuagwu also said, “The naira was at 200 against the dollar and 320 against CFA1,000 before Buhari got to the office. Now, it is between N320 and N330 to $1. This man lacks knowledge and is too old to cope with the stress of governance.

“He refused to delegate to experienced and more intelligent people. How does he expect naira to appreciate?”

However, some Nigerians supported the President’s stance.

Dr. Emmanuel Nwusulor, commenting on Facebook, wrote, “A welcome development.”

Leonard Obi also said, “Mr. President, you are saying the truth.”

Yusuf Umaru, added, “The World Bank and IMF had their way easily with Ibrahim Babangida and (Olusegun) Obasanjo, in collaboration with their Nigerian conspirators, to milk us and keep us down as an underdeveloped and a beggar nation.”

Similarly, Friday Ahmed Sule wrote, “Trustworthy and reliable President Buhari, I will forever engrave you in my heart. Keep focus and continue the generational fight against corruption. God will envelope you and your family with love and protection.”

, ,

Nigeria turning forex scarcity to advantage says Emefiele – Vanguard

By Emma Ujah, Abuja Bureau Chief

ABUJA — The current scarcity of foreign exchange confronting the country is being turned into an advantage through the local production of goods for which hard currencies were hitherto wasted.

Governor of the Central Bank of Nigeria, CBN, Mr. Godwin Emefiele, said this during an assessment tour of the farmlands cultivated under the Anchor Borrowers Programme in Kebbi State, weekend. A statement by the Acting Director of Communications, Mr. Isaac Okoroafor, in Abuja, yesterday, quoted the governor as saying rice output from Kebbi State alone had proved wrong, critics of the apex bank’s forex policy measures.

Emefiele noted that with the level of success attained with the pilot project in Kebbi State, in addition to what he saw at Sunti Golden Sugar Estate in Niger State just recently, the country could produce enough to feed itself and even export in no distant future. Agriculture, bedrock of genuine economic growth The governor reiterated that agriculture remained the bedrock of genuine economic growth of any nation, adding that Nigeria could not be an exception.

As such, he said Nigeria with large expanse of arable land ought not to be spending huge amounts of money on importing food items at the expense of other competing needs. The CBN governor stated that the success recorded by rice farmers in Kebbi State had rekindled hope in the ability of Nigeria to be self-sufficient in rice and wheat production. He noted that with N210,000, each farmer was able to cultivate a hectare of rice farm. He disclosed that a total of 78,581 farmers were mobilized in Kebbi State under the Anchor Borrowers Programme and that the farmers are already looking forward to a total of one million metric tons rice this year.

Speaking further on what the programme had been able to achieve, the CBN governor stated: “With the disbursement of N4.9 billion as loans to the farmers, over 570,000 direct jobs have been created and saved with the multiplier effects. “70,871 rural farmers now own and operate bank accounts and captured under the Bank Verification Number (BVN) biometric project and timely supply of inputs to 73,001 farmers.”

According to the CBN governor, the performance of the Anchor Borrowers Programme has vindicated the stance of the apex bank and that given the incentive and appropriate support, Nigerian farmers can fill whatever gap exists between the demand and supply of agricultural products like rice, wheat, cotton and palm produce.

On his assessment of the programme, the Minister of Agriculture, Chief Audu Ogbe, said the level of activities in the rural areas visited by the team had shown that with Kebbi State alone targeting one million tons of rice out of the projected seven million tons required by the entire country, self sufficiency in rice production is very much in sight at this time when 12 other states identified as rice producing belts harvest their produce. He commended the efforts of the CBN for reinventing agricultural practice into profitable business venture.

Source: Vanguard

, , , ,

Naira FOREX Rates April 25th 2016 – Parallel Market



NAIRA (N)

USD ($)

EURO (€)

GBP (£)

BUY/SELL

BUY/SELL

BUY/SELL

25/4/2016

319/322

358/363

448/453

22/4/2016

318/321

359/363

449/453

21/4/2016

319/322

360/365

445/450

20/4/2016

319/322

355/360

445/450

19/4/2016

319/322

355/360

445/450

 

,

Nigeria’s Buhari still against naira devaluation, says has not previously helped – Reuters

President Muhammadu Buhari said on Friday he is yet to be convinced that Nigeria would benefit from a devaluation of the naira, despite its sharp fall against the dollar on the black market and rising inflation.

The slump in global crude prices has caused the worst economic crisis in years in Nigeria, Africa’s top oil exporter, as oil sales account for about 70 percent of national income.

The official exchange rate against the dollar was pegged at 197 in February last year but a foreign exchange shortage has seen the naira hit record lows on the parallel market in the last few months. It traded at 320 on the black market on Friday.

Last year the central bank introduced curbs to protect foreign exchange reserves, which have fallen to 11-year lows. Companies have complained that they cannot get hard currency to fund essential imports such as food or machinery spare parts.

The central bank has resisted calls from the International Monetary Fund (IMF) and investors to ease the restrictions — a stance supported by Buhari, who has previously likened a devaluation of the naira to having it ‘killed’.

Buhari, a 73-year-old former military ruler who led the country for 20 months in the 1980s, said he resisted pressure from the IMF and World Bank to devalue the naira in his previous tenure and was still yet to see the benefits it would bring.

“The naira remained strong against the dollar and other foreign currencies until I was removed from office in August 1985 and it was devalued,” the president said in an address to retired civil servants.

“But how many factories were built and how many jobs were created by the devaluation? That is why I’m still asking to be convinced today on the benefits of devaluation,” he said.

Inflation rose to a near four year high of 12.8 percent in March, up from 11.4 percent the previous month, which was driven by a rise in food prices.

Foreign stock and bond market investors have become reluctant to put money into Nigeria because they assume the naira will eventually have to be devalued.

A Reuters poll last week predicted that the dollar shortage would prompt a devaluation by September.

 

, , ,

Nigeria Economics Loses to Politics as Buhari Takes Naira Stand – Bloomberg

History is repeating itself in Nigeria, where the more President Muhammadu Buhari is urged to devalue the naira, the more he digs in his heels. Investors are beginning to surmise that politics — rather than economics — will determine the currency’s immediate future.

Even as growth slows, inflation rises and foreign investors flee Africa’s biggest oil producer, analysts in a Bloomberg survey are backing away from estimates a devaluation will take place before the third quarter. Buhari, 73, has made it clear that he, not the central bank, has the final say on currency policy — and that he is against taking that step, just as he was during his first stint in power in the 1980s. The former general is loath to be seen by voters as capitulating to foreign investors and the International Monetary Fund, both vocal critics of his stance, according to New York-based Teneo Intelligence.

“Changing his position would make him seem like a spineless leader,” said Manji Cheto, an analyst at Teneo, a global advisory firm, who predicts there won’t be a change of currency policy until at least the second half of this year. “Buhari is seen as the man who will stand up to foreigners. He ran a campaign as a strongman, someone who would put Nigerian interests ahead of foreign ones.”

Central bank Governor Godwin Emefiele has pegged the naira’s official rate at 197-199 against the dollar since March 2015. Buhari has backed that policy since he became president in May, confounding analysts who thought he would have caved in by now and let the naira fall, as other oil exporters from Russia to Kazakhstan and Colombia have done with their currencies. Foreign-exchange trading restrictions and import curbs have led to shortages of goods from gasoline to milk and sent the naira plunging to 320 on the black market.

Buhari and Emefiele, who meet at least weekly, say that the naira is fairly valued on the official market and that letting it drop would only harm poor Nigerians by pushing up prices. That’s already happening, with inflation accelerating to an almost four-year high of 12.8 percent in March as manufacturers struggled to pay for imports. Growth slumped to 2.8 percent last year, the slowest pace in 17 years. It will slow further to 2.3 percent in 2016, according to the IMF, which called for a “speedy unwinding” of the currency controls to help revive the economy.

It’s not the first time Buhari, who said in February a devaluation would “murder” the naira, has resisted the IMF. When he last ruled Nigeria from 1983 to 1985, a time when, like today, oil prices had just crashed, he ignored advice to depreciate the currency and refused financial assistance from the Washington-based lender.

After Buhari was ousted in a coup amid a worsening financial crisis, his successor Ibrahim Babangida started an IMF-led structural adjustment program, which included a devaluation. It was the first of many that saw the currency’s value drop from roughly parity with the dollar to today’s rate of near 200. Politicians still say the IMF program failed the country.

“I’ve lived through several rounds of naira devaluation and I have seen very little benefit to the Nigerian economy and people,” Nasir el-Rufai, the 56-year-old governor of Kaduna, a northern state of about 7 million people and a senior figure in Buhari’s All Progressives Congress party, said in an interview in Lagos. “I supported each of them as a solution to the challenges we faced at the time. I regret that support because I have seen very clearly it brought nothing to Nigeria.”

‘Already Devalued’

For investors, such thinking makes little economic sense. Many businesses are already trading at the black-market rate since the central bank’s policies are choking off dollars in the official market, according to Exotix Partners LLP, a London-based investment bank focusing on frontier markets. PZ Cussons Plc, the Manchester, U.K.-based soap maker, said last week its Nigerian unit is forced to pay a 50-70 percent premium on the official rate to source foreign exchange.

Foreign investors are avoiding the country until there’s a devaluation. Nigeria’s local bonds are the only ones to have made losses this year among 31 emerging markets tracked by Bloomberg. Nigerian average yields have risen 202 basis points to 12.71 percent since the end of 2015, whereas Russia’s have fallen 29 basis points to 9.26 percent and Colombia’s 27 basis points to 7.77 percent.

Buhari “just doesn’t get it,” Kato Mukuru, the London-based head of equity research at Exotix Partners LLP, said in an interview. “When he was last in power in the ’80s he was also told to devalue the currency. He refused until he was sent out in a coup. Clearly he didn’t do the same economics as I did. There comes a point where you need to understand that the whole country has already devalued.”

, , , ,

Naira FOREX Rates April 21st 2016 – Parallel Market



NAIRA (N)

USD ($)

EURO (€)

GBP (£)

BUY/SELL

BUY/SELL

BUY/SELL

21/4/2016

319/322

360/365

445/450

20/4/2016

319/322

355/360

445/450

19/4/2016

319/322

355/360

445/450

18/4/2016

317/320

360/365

445/450

15/4/2016

320/323

360/365

445/450

 

, , , ,

Naira FOREX Rates April 20th 2016 – Parallel Market



NAIRA (N)

USD ($)

EURO (€)

GBP (£)

BUY/SELL

BUY/SELL

BUY/SELL

20/4/2016

319/322

355/360

445/450

19/4/2016

319/322

355/360

445/450

18/4/2016

317/320

360/365

445/450

15/4/2016

320/323

360/365

445/450

14/4/2016

319/322

358/364

445/450