Money market
Naira appreciates at I & E FX window by 0.12% to N411.50/$
By Kayode Tokede
Naira against the Dollar on Thursday appreciated by 0.12 per cent to N411.50 from N411.54 against the Dollar it closed on Wednesday.
The local currency at the I & E FX window thus lost by 0.70per cent and 1.97per cent against the Pound Sterling and Euro closing at N570.44 and N488.06 respectively.
According to FMDQ Exchange, a total foreign exchange of $138.20million was traded on Thursday.
Foreign exchange turnover at the Investors and Exporters window decreased by 23.4per cent on Wednesday.
FMDQ had reported foreign exchange turnover drop from $172.24 million/ recorded on Tuesday to $131.86 million on Wednesday.
At the parallel market, the Naira closed up by 1.79per cent, 1.33per cent and 0.70per cent against the Dollar, Euro and Pound Sterling at N493, N600 and N710 respectively.
According to analysts at Investment one research, “Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.”
Money market rates rose today as Open Buy Back and Overnight rates were up by 225basis points and 250basis points to 18.25 per cent and 18.75per cent respectively.
The rise in rates may not be unconnected with the CBN’s OMO auction today which may have squeezed system liquidity.
The bond market traded on a slightly positive note today, particularly towards the long end of the curve.
The yields on the 7-year and 10-year benchmark bonds close flat at 12.78per cent and 13.15per cent respectively, while the yield on the 5-year benchmark bond was up by 12basis points to 12.52per cent.
Nigeria’s foreign reserves plunged further on Tuesday, as it dipped by $120.2 million to close at $33.8 billion.
This indicates the highest single-day loss in almost four months, since February 2021. It also represents a 0.35per cent reduction in Nigeria’s external reserve position and the lowest level since April 2020.
A total of $1.5 billion has been lost in reserves year-to-date, while month-to-date loss stands at $380.1 million.
The decline has persisted despite the gains recorded in the global crude oil price. Oil prices are already trading over $74 per barrel.
This is largely attributed to the decline in crude oil sales, due to the effect of the covid-19 pandemic on the buying capacity of India, which is one of the world’s largest importers of oil.
However, reports suggest that India’s oil imports are beginning to pick up. This comes as good news to Nigeria as India is one of the highest importers of Nigerian crude oil.
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.
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