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FOREX: CBN allays fears of Nigerians

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In the face of rising demand for foreign exchange for both goods and services by Nigerians, the Central Bank of Nigeria (CBN) has advised Nigerians to resist the urge of succumbing to the speculative activities of some players in the foreign exchange market.

Speaking with newsmen in Abuja on Thursday, 28 July 2022, the Director, Corporate Communications at the CBN, Mr. Osita Nwanisobi said the CBN remained committed to resolving the foreign exchange issues confronting the nation and as such has been working to manage both the demand and supply side challenges.

While admitting that there was huge demand pressure for foreign exchange to meet the needs of manufacturers as well as those for the payment of tuition, medical fees and other invisibles, Nwanisobi said the Bank was concerned about the international value of the naira, adding that the monetary authority was strategizing to help Nigeria earn more stable and sustainable inflows of foreign exchange in the face of dwindling inflows from the oil sector.

Specifically, he noted that recent initiatives undertaken by the Bank such as the RT200 FX Programme and the Naira4Dollar rebate scheme had helped to increase foreign exchange inflow to the country. According to him, the Bank’s records showed that foreign exchange inflow through the RT200 FX Programme in the first and second quarters of 2022 increased significantly to about US$600 million as at June 2022. Similarly, he disclosed that the Naira4Dollar incentive also increased the volume of Diaspora remittances during the first half of the year.

Continuing, he said interventions such as 100 for 100 Policy on Production and Productivity, Anchor Borrowers’ Programme (ABP) and the Non-Oil Export Stimulation Facility (NESF), among others, were also geared towards diversifying the economy, enhancing inflow of foreign exchange, Stimulating production and reducing foreign exchange demand pressure.

Nwanisobi therefore said that the Bank would continue to make deliberate effort in the foreign exchange sector to avert further downward slide in the value of the naira, which he observed is fuelled by speculative tendencies.

Reiterating an earlier position of the CBN Governor, Mr. Godwin Emefiele, he urged Nigerians to play their role by adjusting their consumption patterns, looking inwards and finding innovative solutions to the country’s challenges. He submitted that Monetary policy alone could not bear all the burden of the expected adjustments needed to manage the challenges around Nigeria’s foreign exchange and admonished that: “It’s our collective duty as Nigerians to shore up the value of the Naira”.

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War: We will reconsider nuclear doctrine – Iran threatens Israel

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Iran on Thursday threatened to “reconsider” its nuclear doctrine if Israel attempts to attack any of its nuclear facilities amid heightened tensions between the duo.

Brigadier General Ahmed Haqtalab, the Commander of the Islamic Revolutionary Guard Corps (IRGC) in charge of the protection of nuclear centres, said Iran would respond if Israel threatened the country’s nuclear facilities.

The warning comes amid speculations that Tel Aviv is mulling a military response to IRGC’s unprecedented direct attack on multiple positions in Israel on Saturday that involved hundreds of missiles and drones.

Tehran said the attack was in response to the April 1 attack on the Iranian Consulate in Damascus that killed seven Iranian military officers, including two top-ranking IRGC commanders for Syria and Lebanon.

Israeli officials have warned of retaliation despite many Western countries urging restraint and de-escalation of tensions.

Haqtalab said if Israel takes action against Iranian nuclear facilities and centres, it will “definitely face response” in the form of attacks on Israeli nuclear centres.

He said: “The threat of the Zionist regime against Iran’s nuclear facilities makes it possible to revise and deviate from the declared nuclear policies and considerations.”

Haqtalab noted that based on international protocols and regulations defined by the International Atomic Energy Agency (IAEA), all countries are obliged to refrain from attacking nuclear facilities, but Iran is “prepared to deal with all threats.”

The IRGC commander said Iran has the “necessary information” to identify nuclear targets in Israel and “hands are on the trigger” if the need arises.

He accused Israel of “violating all international laws and regulations” by carrying out an attack on Iran’s diplomatic mission in the Syrian capital, calling it a “criminal act.”

Iran’s Foreign Minister Hossein Amir-Abdollahian, who landed in New York for a UN Security Council meeting on full Palestinian membership on Thursday, has also warned of a “strong response” in his conversations with foreign counterparts in recent days.

His Deputy and Iran’s lead nuclear negotiator, Ali Bagheri Kani, on Monday said any fresh military action by Israel against Iran will see a response “within seconds.”

“In the event of another mistake (by Israel), they must expect a response that is more swift and strong,” he asserted.

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Nigerian govt conducts price enforcement in Abuja supermarkets

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The Federal Competition and Consumer Protection Commission, FCCPC, has initiated a campaign to enforce price display and quantity compliance at supermarkets throughout Abuja.

The Commission started this at 4U Supermarket, Wuse 2 Abuja on Thursday.

This move, it said, is a direct response to concerns raised by consumers about the rising costs of goods, which go against the recent strengthening of the naira.

The Commission said price discrepancies remain a significant issue.

It stressed that consumers have the right to be informed of the prices of items they intend to purchase.

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US, UK announce sanctions on Iran’s drone program

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The United States, US, and the United Kingdom, UK, on Thursday announced widespread sanctions against Iran’s military drone program in response to its weekend attack against Israel.

Referring to Iran’s unmanned aerial vehicle program, the Treasury Department, in a statement, said Washington is targeting “16 individuals and two entities enabling Iran’s UAV production, including engine types that power Iran’s Shahed variant UAVs, which were used in the April 13 attack”.

The UK is also imposing sanctions “targeting several Iranian military organizations, individuals and entities involved in Iran’s UAV and ballistic missile industries,” the Treasury Department said.

Tehran launched its first-ever direct military attack on Israel late Saturday in retaliation for an April 1 air strike on the Iranian consulate in Damascus — widely blamed on Israel — that killed seven members of the Islamic Revolutionary Guard Corps, including two generals.

The large-scale attack involved more than 300 drones and missiles, most of which were shot down by Israel and its allies including the US and the UK, causing little damage.

In response to the attacks, Israel’s prime minister, Benjamin Netanyahu, said Israel reserves the right to protect itself.

“Today, in coordination with the United Kingdom and consultation with partners and allies, we are taking swift and decisive action to respond to Iran’s unprecedented attack on Israel.

“We’re using the Treasury’s economic tools to degrade and disrupt key aspects of Iran’s malign activity, including its UAV program and the revenue the regime generates to support its terrorism.

“We will continue to deploy our sanctions authority to counter Iran with further actions in the days and weeks ahead,” US Treasury Secretary Janet Yellen said in a statement.

Alongside its sanctions against Iran’s UAV program, the US is also sanctioning five companies providing parts for Iran’s steel industry.

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