09
SepOn Wednesday, the Nigerian currency continued to fall against the dollar, hitting a fresh all-time low on the parallel market in Lagos. Despite rising forex reserves, the naira has been steadily declining since the beginning of this month, owing to the country’s ongoing foreign exchange scarcity. On Wednesday, the naira lost value versus the US dollar in both the parallel market and the Investors’ and Exporters’ FX window. The local currency, which was 526/$1 at the end of last month, dropped to 535/$1 on Wednesday in the parallel market, down from 532/$1 on Tuesday. Since August 4, when it ended […]
02
SepThe total value of dollar remittances from Nigerians working abroad has risen to $34 billion, comfortably surpassing the previous high of $25 billion. Despite the spike, a major chunk of the funds does not appear to be entering the already constricted domestic FX markets. The surge, credited to the Central Bank of Nigeria’s (CBN) “naira for dollar” incentive plan, underscores the growing importance of diaspora remittances to Africa’s most populous country. Mr. Biodun Adedipe, an economist at Adedipe Associates Limited, is quoted as saying that the CBN’s incentive plan could be the reason why the $34 billion in annual diaspora[…]
28
JulThe Central Bank of Nigeria (CBN) has announced that it will immediately cease selling foreign exchange to Nigerian Bureau De Change (BDC) operators. The Central Bank claims to have evidence that the BDCs were engaging in rent-seeking when it came to dollar sales. The remark was made by CBN governor Godwin Emefiele during a virtual press briefing on Tuesday to mark the end of the apex bank’s Monetary Policy Meeting (MPM). Emefiele also stated that the MPC has maintained all monetary policy parameters at the 11.5 percent Monetary Policy Rate. As a result, he stated that the CBN will no[…]