Business
Naira Reaches All-time Low At Official Market
Published
5 months agoon
By
Editor![](https://infodailyng.com/wp-content/uploads/2020/12/Naira-dollar-1.jpg)
The naira fell to a new all-time-low of N1,534/$ on the official Nigerian Autonomous Foreign Exchange Market on Monday.
This indicates a loss of 3.93 per cent fall or N58 from the N1,476.13/$ the national currency closed last week Friday, according to FMDQ Exchange, a platform that publishes official foreign exchange trading in the country.
Monday’s official rate became the worst official exchange rate since the Central Bank of Nigeria floated the national currency in June 2023.
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However, at the parallel market on Monday, the naira traded between the rate of N1,480 and N1,490. It appears the local currency has been trading higher at the parallel market in recent times especially since the FMDQ reviewed the methodology it uses to calculate the official exchange rate.
The change in the methodology for the calculation of the official exchange rate had led to the depreciation of the naira from over 900/dollar to over 1,400/dollar.
Sometime in December, the naira closed above the N1000/$ on the official window. On December 8, the naira first fell to an all-time low of N1,099.05/$. On December 28, 2023, it closed at N1043.09/$, and N1035.12/$ on January 3, 2024. On January 9, 2024, it closed at N1089.51/$ and N1082.32/$ on January 10, 2024. It had also fallen to an all-time-low of N1348.63/$ on January 30, 2024, when the FMDQ reviewed its methodology for the calculation of the official exchange rate.
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Meanwhile, dollar sales by banks dropped by 56.58 per cent to $253.77 million on Friday from the peak of $584.53 million on Monday, the first trading day after the CBN ordered banks to sell excess dollars in the official FX market.
Cumulatively, commercial banks sold a total of $1.97bn in one week.
Currency traders in Abuja, also known as Bureau De Change operators, quoted the buying rate of the greenback at N1,480 and the selling price at N1,503, leaving a profit margin of N23.
Mallam Yahu, a BDC operator in Wuse, said, “We currently buy between the rate of N1,480 and N1,490, and we sell at N1,500 and N1,503.”
Another seller, simply identified as Yahaya Abdul, however said he could not buy beyond the rate of N1,460.
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Business
JUST IN: CBN Raises Interest Rate to 26.75% Amid Surging Inflation
Published
4 days agoon
July 23, 2024By
Editor![](https://infodailyng.com/wp-content/uploads/2024/01/Cardoso-1.webp)
The Central Bank of Nigeria, CBN, Monetary Policy Committee, MPC, on Tuesday raised the interest by 50 basis points to 26.75 per cent from 26.25 per cent in May 2024.
CBN governor, Olayemi Cardoso, announced this at a press briefing on Tuesday at the end of the two-day 296th MPC in Abuja.
According to him, the decision to further increase the interest rate is to tackle the country’s rising core inflation and food inflation which stood at 34.19 per cent and 40.87 per cent, respectively in June.
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He said members of the MPC are not oblivious of the need to address the rising prices of food in Nigeria, necessitating the interest rate hike.
DAILY POST reports that the implication of the interest rate hike is that businesses, farmers, manufacturers and investors will have to pay more to get loans from banks.
The 296th MPC meeting is the fourth time the interest rate has been increased since the appointment of Cardoso in September last year.
Recall that in May 2023, when President Bola Tinubu was inaugurated, Nigeria’s interest rate stood at 18.75 per cent while inflation rate stood at 22.41 per cent.
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Meanwhile, despite CBN’s continued interest rate hikes, the country’s inflation has not cooled off.
Earlier analysts had called for a pause in the hike of the interest rate.
The Director of the Centre for Promotion of Private Enterprise, Muda Yusuf, backed call for a pause in the hike of the interest rate.
According to him, the monetary instruments have been overstretched, hence not productive.
“I think we have overstretched monetary instruments because of inflation. They should put a pause on interest rate hikes,” he said.
Business
CAC To Cancel Certificates Of BDCs With Revoked Licences
Published
2 weeks agoon
July 11, 2024By
Editor![](https://infodailyng.com/wp-content/uploads/2022/05/CAC.webp)
The Corporate Affairs Commission (CAC) has said it would cancel the certificates of incorporation of Bureaux De Change(BCDs) whose licences have been revoked by the Central Bank of Nigeria( CBN).
The Nation reported in February the CBN revoked the licences of 4,173 Bureau De Change operators over their failure to meet regulatory guidelines.
In a statement by its acting Director, Corporate Communications, Sidi Hakama, CBN explained that the regulatory provisions flouted include nonpayment of all necessary fees within the stipulated period.
CBN said: “The affected institutions failed to observe at least one of the following regulatory provisions: Payment of all necessary fees, including licence renewal, within the stipulated period in line with the guidelines.
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“Rendition of returns in line with the guidelines; compliance with guidelines, directives, and circulars of the CBN, particularly Anti-Money Laundering, Countering the Financing of Terrorism and Counter-Proliferation Financing regulations.”
However, in line with the above directive by the CBN, the CAC in a notice on its website on Wednesday, said the certificates would be cancelled within three months if the affected companies do not change the names and objects of such companies.
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“The general public is hereby informed that following the revocation of the operational licenses of 4,173 Bureau De Change companies by the Central Bank of Nigeria vide a Federal Republic of Nigeria Official Gazette (Vol. 111) No. 37 of February 27, 2024 for noncompliance with Regulatory Standards, the Corporate Affairs Commission in the exercise of its powers under section 8(1)(e) of the Companies and Allied Matters Act, 2020 advises these companies to within three months from the date of this publication, change the names and objects of such companies.
“Failure to change the names and objects within the stipulated time frame shall result in cancellation of certificate of incorporation and dissolution. It is to be noted that it is unlawful for a company whose certificate has been deemed dissolved to carry on business,” the CAC notice reads.
Business
FG Suspends Taxes On Maize, Wheat, Rice, Others
Published
3 weeks agoon
July 8, 2024By
Editor![](https://infodailyng.com/wp-content/uploads/2024/07/food-grains-510x340-1.jpeg)
The Federal Government has suspended duties, tariffs and taxes on some essential food items imported through land and sea borders.
Minister of Agriculture and Food Security, Abubakar Kyari, announced this at the National Press Centre, Abuja.
Kyari also said the Federal Government has also inaugurated the Renewed Hope National Livestock Transformation Implementation Committee to develop and implement policies that prioritize livestock development and align with the National Livestock Transformation Plan.
He stated that the listed food items, which include maize, wheat, husked brown rice and cowpeas, will enjoy a 150-day Duty-Free Import Window.
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He added that the move is part of the Presidential Accelerated Stabilization and Advancement Plan, which is aimed at achieving food security and economic stability in the country.
According to him: “The Federal Government has announced a 150-day Duty-Free Import Window for Food Commodities, suspension of duties, tariffs and taxes for the importation of certain food commodities (through land and sea borders). These commodities include maize, husked brown rice, wheat and cowpeas.
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“Under this arrangement, imported food commodities will be subjected to a Recommended Retail Price (RRP).
“I am glad to reiterate that the Government’s position exemplifies standards that would not compromise the safety of the various food items for consumption.
“In addition to the importation by the private sector, the Federal Government will import 250,000MT of wheat and 250,000MT of maize. The imported food commodities in their semi-processed state will target supplies to the small-scale processors and millers across the country.”
![](https://infodailyng.com/wp-content/uploads/2021/06/FB_IMG_1623495296465.jpg)
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