Naira nears N1000/$ as CBN’s policies stress-test banks, unlock liquidity

  • 📰 GuardianNigeria
  • ⏱ Reading Time:
  • 113 sec. here
  • 6 min. at publisher
  • 📊 Quality Score:
  • News: 58%
  • Publisher: 94%

Bureau De Change News

CBN’S Policies,Foreign Exchange,Naira Gains

Naira may be on course to regain N1000/$ (an exchange rate though implausible as early as a month ago) in the near time if the current bullish outlook of the market is sustained.

Naira may be on course to regain N1000/$ in the near time if the current bullish outlook of the market is sustained.

Both circulars, market analysts, are optimistic could trigger the dumping of foreign currencies by remnant speculators, who are still holding on the tread, in the coming days. With the operators expected to give to end users at a ceiling of 1.5 per cent margin, the dealers are not expected to sell above N1,117/$.

This would be the third sale of FX to BDCS after the Godwin Emefiele interregnum, which followed the freezing of the BDC segment in 2021. The suspension was lifted some weeks ago with the apex bank rejigging the operating template. That suggests that the CBN discounted rate was higher than the black-market rate. If the same trend, fuelled mainly by panic sales, continued into the week, the dollar may exchange around N1100/$.Its current rate is lower than the three-month moving average , according to data tracked by The Guardian. Some experts said the downward movement of the dollar against the naira is becoming entrenched – a suggestion that the local currency crisis could be out of the woods.

At press time, it was not clear whether the move would support the cause of stabilising the naira and unlocking FX liquidity. However, some experts suggested it could help to reduce official abuse of the naira and reduce rent-seeking behaviours. Dozens of multinational companies, who are known for pledging foreign currency-denominated collaterals for domestic loans, may in the coming weeks, be asked to renegotiate their loans. The calls could stress-test banks’ relationship with many of the multinational companies, The Guardian understands.

“If the credit is properly perfected, it means the lender can foreclose the collateral in case of default,” Adonri explained, insisting that foreign currency-denominated assets are perfect collaterals and even more superior in many cases. The United Nations Development Programme has offered N200 million in support to Micro Small and Medium Enterprises in Bayelsa State.The festering crisis in Rivers State seems to have no end in sight, as Governor Siminalayi Fubara, yesterday, reminded his political foes that whatever political powers they claim to have without the support of the people and the state where they come from amounts to nothing.

Source: News Formal (newsformal.com)

CBN’S Policies Foreign Exchange Naira Gains

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 1. in NG

Nigeria Latest News, Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Twitter user falsely claims dollar sold at N1000As of 27 March, the post had gained more than 271,500 views, 715 reactions, 178 comments, 377 retweets and 46 bookmarks.
Source: PremiumTimesng - 🏆 3. / 78 Read more »

What CBN should do to crash FX rate to N1000 per dollarA financial expert, Kalu Aja has told the Central Bank of Nigeria to sell the Naira at an exchange rate of N1000 to USD. Aja disclosed this in a statement on Sunday on his official X handle.
Source: DailyPostNGR - 🏆 11. / 59 Read more »

CBN cedes growth for foreign capital inflow as naira nears N1300/$The Central Bank of Nigeria (CBN) leaves nobody in doubt about outward-looking posturing, which prioritises foreign capital
Source: GuardianNigeria - 🏆 1. / 94 Read more »

Naira to appreciate to 1,200 to a dollar in 12 monthsGoldman Sachs stated that positive real interest rates and capital inflows are central to tackling Nigeria’s external liquidity crisis.
Source: PremiumTimesng - 🏆 3. / 78 Read more »

Media articles whitewash top Nigeria Customs official indicted in multi-billion naira scandalThe official is one of the seven Nigerian Customs Service (NCS) officials arrested and detained for allegedly accepting N12 billion bribes from smugglers who are still walking freely.
Source: PremiumTimesng - 🏆 3. / 78 Read more »

Naira will appreciate to N1200 against USDGoldman Sachs Analysts have forecasted that the Naira will appreciate N1200 per US dollar in twelve months. Goldman Sachs analysts, Andrew Matheny and Bojosi Morule disclosed this in their recent analysis of Nigeria's current economic realities.
Source: DailyPostNGR - 🏆 11. / 59 Read more »