Money market
Naira closes at N502/$ at parallel market
By Kayode Tokede
Naira at the parallel market on Thursday closed flat against the Dollar at N502, but gained 0.17per cent and 0.28per cent against the Euro and Pound Sterling to close at N606 and N713 respectively.
However, the local currency at the Investors & Exporters Foreign Exchange (I & E FX) window gained 0.13 per cent against the Pound Sterling and Dollar closing at N579.60 and N410.95 respectively, it inched down by 0.18per cent against the Euro at N500.27.
Our correspondent had reported that Naira appreciated against the Dollar at the I&E window on Wednesday to close at N410.95/$1. This represents a 55 kobo gain when compared with the N411.50/$1 recorded on Tuesday.
An exchange rate of N420.77 to a dollar was the highest rate recorded during intra-day trading before it closed at N410.95/$1, while it also sold for as low as N400/$1 during intra-day trading.
According to FMDQ Exchange, a turnover foreign exchange of $89.89 million was traded by investors and exporters on Thursday.
Forex turnover at the I&E window rose massively by 261.5 per cent on Wednesday from $62.79 million/ recorded on Tuesday to $226.98 million on Wednesday.
“Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies,” analysts at Investment One research explained.
Money market rates rose as Open Buy Back and Overnight rates closed up by 233basis points and 208basis points at 17 per cent and 17.25 per cent respectively.
The bond market was slightly negative, particularly at the midpoint of the curve. The yields on the 5yr and 7yr benchmark bonds closed flat at 12.16 per cent and 12.78 per cent respectively, while the yield on the 10 year bond saw a 16bps uptick, printing at 13.10 per cent.
“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” according to analysts at Investment One research.
According to the Central Bank of Nigeria (CBN), the nation’s external reserve continued its decline, as it dropped by $26 million on Tuesday to close at $34.077 billion, representing a 0.08per cent decline when compared to $34.103 billion recorded on Monday.
Nigeria’s foreign reserve has lost about $1.292 billion year-to-date, having recorded declines consecutively for 33 days.
The current position also represents the lowest level in over one year. The last time Nigeria’s foreign reserve position was this low was 7th May 2021, when it stood at $31.19 billion.
The decline persists despite the increase in global crude oil prices.
The decline can be attributed to a drop in crude oil export arising from the reduction in the purchase of Nigeria’s crude oil by India, a major importer of Nigerian crude, a nation currently burdened by a second wave of the covid-19 pandemic.
By Esther Agbo
The Federal Ministry of Finance and the Ministry of Budget and Economic Planning hosted a high-level delegation of Canadian investors in Abuja today, highlighting Nigeria’s commitment to fostering economic cooperation and attracting foreign investment.
The meeting was led by Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and Honourable Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu. Organised by the African Capital Alliance, the event aimed to highlight Nigeria’s economic reforms and investment opportunities to potential investors from Canada.
While at the meeting, both ministers facilitated discussions on key reforms by the Federal Government, investment prospects, and initiatives designed to enhance economic collaboration between Nigeria and Canada.
Furthermore, the event offered the Nigerian Government a stage to present its economic reforms and investment opportunities to the Canadian business community.
The ministers highlighted Nigeria’s potential and dedication to fostering a favourable business climate.
In Edun’s words, “This meeting demonstrates our commitment to fostering economic cooperation between Nigeria and Canada.”
He emphasised the Federal Government’s dedication to creating a conducive environment for investors and promoting economic growth.
Senator Bagudu however echoed these sentiments, highlighting various initiatives aimed at improving the business environment in Nigeria.
Similarly, the Chairman of African Capital Alliance, Mr. Enelamah expressed his satisfaction with the engagement, noting that it aligns with the African Capital Alliance’s mission to promote private sector investment in Africa.
He said, “African Capital Alliance is pleased to facilitate this engagement, which aligns with our mission to promote private sector investment in Africa.”
The meeting ended with the Canadian delegation, which included top executives from prominent companies, expressed interest in exploring investment opportunities in Nigeria.
The delegation members were: the President of CIBC Group, Victor Dodig, the CEO of Mattamy Asset Management, Peter Gilgan, President of OMERS, Blake Hutcheson, President of Cameco, Tim Gitzel, President of Garda World Security Corp, Stephan Crétier, President of the Business Council of Canada, Goldy Hyder, Co-Founder of BKR Capital, Isaac Olowolafe and the High Commissioner of Canada to Nigeria, James Christoff.
By Seun Ibiyemi
The Central Bank of Nigeria has warned authorised forex dealers against defacing/stamping US Dollar banknotes and continued rejection of old series and lower denominations of the United States of American dollars by its regulated entities in Nigeria.
This is even as the apex bank threatened to sanction lenders that rejected the currencies.
This was contained in a circular dated June 27, signed by the acting director of the currency operations department, Solaja Olayemi, which was recently released on the website of the apex bank.
The circular directed at Deposit Money Banks, Bureau De Change operators and the general public cautioned against the continued rejection of the old series and lower denomination of the American greenback.
CBN said the fresh circular followed the outcome of its consumer market intelligence, which revealed the continued rejection of old/lower denominations of dollar bills by banks and other authorised forex dealers.
The circular also warned authorised forex dealers against defacing/stamping US Dollar banknotes as such notes always fail authentication tests during processing/sorting.
“Kindly be reminded that the Central Bank of Nigeria circular referenced COD/DIR/INT/CIR/001/002 and dated 9th April 2021, which explicitly frowned at this selective acceptance of deposit, is still in force and must be adhered to and complied with by all relevant parties.
“For the avoidance of doubt and further guidance on the circular, the content is hereby reissued as follows for strict compliance: All DMBs /authorised forex dealers should henceforth accept both old series and lower denominations of United States Dollars that are legal tender for deposit from their customers.
“The CBN will not hesitate to sanction any DMB or authorised forex dealers who refuse to accept old series/lower denominations of US Dollar bills from their customers,” the circular partly read.
CBN first issued the warning in a circular signed by then director of the currency operations department, Ahmed Umar, on April 9, 2021.
Wema Bank, the pioneer of Africa’s first fully digital bank, ALAT, has charged stakeholders to prioritise digital empowerment for MSMEs as a measure for championing a sustainable MSME ecosystem in Nigeria.
The charge was made at the International MSMEs Day and MSME Awards Night 2024; a two-fold event organised by the Federal Government through the Office of the Vice President in commemoration of World MSME Day 2024 recently in Abuja.
The event was themed ‘Call to action: Provision of sustainable single-digit loans for MSMEs,’ and featured entities, including Wema Bank, who brainstormed and proffered financial solutions to provide affordable loans and funding for MSMEs.
The Chief Executive Officer of Wema Bank, Moruf Oseni, represented by the bank’s Executive Director of Retail and Digital Business, Tunde Mabawonku, emphasised the pressing need to prioritise technology and digital empowerment to complement capacity development, financial empowerment, and collaborative efforts, towards building a supportive ecosystem for MSMEs to thrive.
He said, “At Wema Bank, our approach embodies the saying, ‘Give a man fish, he will come back but teach a man to fish, he will learn to fend for himself and others.’ Technology and digital are the future, and intelligence is here to stay. What we are doing for these MSMEs is beyond providing the finances they need.
“We are also focusing on empowering them with relevant and transferrable digital skills to ensure they are not left behind in this digital evolution. What are the skills they need to sell in this fast-growing digital world? To operate effectively? To compete? To maximise the resources at their disposal? These are the questions that drive us at Wema Bank,” he said.
According to Oseni, the goal is digital empowerment for scale and to maximise the bank’s impact.
“We continue to partner with several esteemed bodies and institutions across the world, from banks to agencies, regulatory organisations, etc.
“Collaboration for us is continuous, from small alliances that allow us to empower smaller businesses through significant platforms within their ecosystem to bigger partnerships like the FGN-ALAT Digital Skillnovation Programme.
“We will continue to combine efforts and pool resources where ideal to create an enabling environment for businesses to thrive, provide financial support and other resources that these businesses need and empower them to skillfully utilise the resources available to them for maximum impact and growth,” Mabawonku concluded.
Micro, Small, and Medium Enterprises Day is celebrated globally to raise awareness of the tremendous contributions of enterprises to the achievement of the United Nations Sustainable Development Goals.
NRC suspends train services in Delta, Kogi
Tinubu meets Edo APC gov candidate, others in Abuja
