Business
Naira Still Stable At Forex Market
Against expected increase in liquidity in the foreign exchange market, the exchange rate of naira against major currencies remained stable as at the second day of trading in the new year.
Specifically at the official market, the naira sold for N147.6 same as it was on the first day while the euro sold for N211.865 it exchanged on Monday.
Also, against the British Pound, the Naira sold for N239.9, same as it was during the period under review.
At the parallel market, the US dollar sold for N150.00 down from N152 last week while at the bureau de change, the dollar exchanged for N149.9.
“This period is usually one that is characterised by lower demand for the dollar as many Nigerians coming from abroad bring in the much needed foreign currencies said Mr. Wale Abe a financial expert.
At the wholesale Dutch Auction System (WDAS) trading held on Monday the Central Bank of Nigeria offered $200 million as against $300 million sold last week, while $200 million was sold as against $300 million the previous week.
Interbank lending rate edged up to 3.16 per cent on average this week, compared to 30 per cent last week, as the system remained liquid enough to support demand for credit, a dealer said.
The Open Buy Back (OBB) was flat at 2.5 per cent below the Central Bank’s 6.0 per cent benchmark interest rate.
Overnight placement was also unchanged at 3.0 per cent, while call money climbed to 4.0 per cent from 3.5 per
cent the previous week.
Inflows of about N56 billion in cash calls to Nigeria’s’ oil joint venture partners and the redemption of about N63 billion in promisory notes by the Central Bank boosted liquidity last week.
Meanwhile, the Central Bank, at the second day left its benchmark interest rate unchanged as it aims to ease a credit shortage caused by last year’s banking crisis.
At the monetary policy meeting held Tuesday CBN governor, Lamido Sanusi said the monetary policy rate would be held at six per cent.
CBN, last year, bailed out the banking industry with N620 billion ($4 billion) to ease a credit squeeze and sacked eight bank chiefs.
The apex bank expects legislators to approved the creation of a company to buy bad debts from commercial banks in about three weeks Sanusi said Tuesday.
The key rate was last cut by 1.75 percentage points in April.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.