Naira depreciates by 0.03% to close at N412.00/$
By Kayode Tokede
Naira at the Investors & Exporters Foreign Exchange Window ( I & EFX) on Tuesday depreciated further to close at N412.00 per dollar as against N411.88 traded on Monday.
The FMDQ stated that a turnover of $110.01million was traded by investors and exporters on Tuesday against $32.58million reported on Monday.
At the parallel market, while the Naira closed flat against the Pound Sterling at N675, it lost against the Dollar o close at 484 as against 480 it stood on Monday, however, gained over the Euro to close at N580 compared to N583 it was sold the previous day.
The local currency at the Central Bank of Nigeria (CBN) inter-bank market traded flat at N379 against the Dollar on Tuesday.
According to analysts at InvestmentOne Research “Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.”
Money market rates decreased today as Open Buy Back and Overnight rates fell by 125basis points and 25 basis points to close at 10.25 per cent and 11.50 per cent respectively.
The bond market was quiet today as yields remained unchanged on most maturities. Consequently, we witnessed the yields on the 5yr, 7yr and 10yr benchmark bonds close flat at 9.96per cent, 10.10 per cent and 10.40 per cent respectively.
Meanwhile, the Governor, CBN, Mr. Godwin Emefiele had said the new, “Naira 4 Dollar Scheme’’ for diaspora remittances will enhance a transparent and more flexible remittance administration.
He said this in a series of tweets in CBN’s verified twitter handle.
He stated that the scheme will greatly enhance the benefits of diaspora remittances in supporting investments and economic growth in Nigeria.
He said that the scheme was consistent with the global trend, adding that the apex bank aspired to ensure that remittance flows and diaspora investments became a significant source of external financing.
According to him, “CBN strives to constantly improve our remittance infrastructure, ease the process of international money transfer and simplify the experience for senders and recipients.
“We believe this new measure will help to make the process of sending remittance through formal bank channels cheaper and more convenient for Nigerians in the diaspora.
“The new policy will create an easier, more flexible, and more transparent, system of remittance administration, it will greatly enhance the benefits of diaspora remittances in supporting investments and growth in Nigeria.”
He said that the policy was aimed at reducing rent-seeking activities, and providing Nigerians in the diaspora with cheaper and more convenient ways of sending remittances to Nigeria.
He added that similar schemes had helped boost economies of some countries across the world.
“The use of reimbursements of remittance fees has been critical in supporting improved inflow of remittances to countries in South Asia and in improving their balance of payments position following the COVID-19 pandemic.
“PwC forecasts suggest that Nigeria’s remittance flows could reach $34.89 billion by 2023. But this can only be accomplished if remittance infrastructure improves and if the right policies are put in place,’’ he said.
The apex bank over the weekend announced the “Naira 4 Dollar Scheme’’ to commence on Monday and run till May, 8.
The scheme would allow all recipients of diaspora remittances to be paid N5 for every one dollar received.
