Tag Archives: Foreign Exchange

CBN Re-instates Banks Banned From Foreign Exchange Market

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The Central Bank of Nigeria (CBN) has re-instated all the banks that were banned from the foreign exchange market, the Director, Banking Supervision, Mrs Tokunbo Martins, has said.

She said this on Wednesday in Abuja at a media briefing, stating that the decision was reached after a series of meetings with the body of bank Chief Executive Officers (CEOs) and the Chartered Institute of Bankers of Nigeria (CIBN).

“Well, we have had engagements with the body of CEOs and they have been interacting amongst themselves and I am happy to tell you today that the banks that were hitherto banned have been released from the ban.

“And the reason is because all of the banks after discussions and engagements under the auspices of the body of CEOs and the CIBN have all submitted credible repayment plans which we the CBN found acceptable.

“So as a result of that, all those banks have been re-instated in the foreign exchange market.’’

The CIBN President, Prof. Segun Ajibola, said that the institute was very much interested in what was happening among all the industry players.

He added that under the aegis of the institute, the body of bank CEOs was now a formidable platform to look at issues that were pertinent to the industry and the economy, to ensure that stakeholders’ interest was protected.

“We will protect the interests of all our stakeholders and especially the bigger picture, which is Nigeria and its economy as a whole.

“So it is a happy development and I believe this will further help to strengthen our system and our economy.’’

The Managing Director of Access Bank, Mr Herbert Wigwe, said that the body of bank CEOs under the under the auspices of the CIBN, aims to get banks to work together.

Read More:

http://guardian.ng/news/cbn-re-instates-banks-banned-from-foreign-exchange-market/

NAHCON Denies Buhari Gave Foreign Exchange Waiver To Hajj Pilgrims

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The National Hajj Commission of Nigeria (NAHCON) on Sunday said the Federal Government has not given foreign exchange waiver to Nigerian pilgrims performing hajj this year.

The commission’s Head of Media, Uba Mana, said this in a statement in Abuja on Sunday.

“The National Hajj Commission of Nigeria wishes to draw the attention of the public that the Federal Government has not given foreign exchange waiver to Nigerian pilgrims performing this year’s hajj,” Mr. Mana said.

“If there is one thing that the Government did for the Nigerian pilgrims, it was to allow the exchange rate prevalent at the time of payment of Hajj fare in February when the current flexible exchange rate was not in action to subsist.

“It is therefore wrong and mischievous for some persons or media organisations to peddle unfounded claims that the Federal Government gave the Nigerian pilgrims a waiver,’’ he said in the statement.

The News Agency of Nigeria (NAN) recalls that the Presidency had earlier clarified the concessions of foreign exchange rate of N191 to one dollar for the 2016 intending pilgrims to Hajj and Jerusalem.

The Senior Special Assistant to the President, Media and Publicity, Garba Shehu, said the policy was non-discriminatory.

He said that it had been approved before the current foreign exchange regime came into effect.

 He also said that that the Central Bank of Nigeria had confirmed the approval, wondering why the apex bank had not notified the public earlier.

President Muhammadu Buhari has been roundly condemned for approving foreign exchange concession to pilgrims at a time the economy is struggling.

Read More:

http://www.premiumtimesng.com/news/headlines/208227-nahcon-denies-buhari-gave-foreign-exchange-waiver-hajj-pilgrims.html

U.S To Engage Fed Govt On Foreign Exchange Flexibility

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The United States (U.S) has said it would this week, engage the Federal Government in talks to adopt a more flexible foreign exchange (forex) rate to boost growth and investment.

Its Assistant Secretary of State for Africa, Linda Thomas-Greenfield, told an audience at the U.S. Institute of Peace that Nigeria should ensure that the value of the naira versus the U.S. dollar was “more realistic.”

“While most people complain about the possibility of  a devaluation, people are already operating on a devalued currency, and the only people who are not, are people who are doing it officially.

“Our recommendation is, and we will have discussions about it … that they should look at the exchange rate and try to make the exchange rate more realistic to what the value of the naira is to the dollar,” Thomas-Greenfield was quoted to have said by Reuters.

She spoke before the talks  to be launched in Washington by Secretary of State John Kerry today. The talks will focus on Nigeria’s economy, security and development.

Nigeria faces its worst economic crisis in decades as the falling prices of oil has slashed revenues, prompting the Central Bank of Nigeria (CBN) to peg the currency and introduce curbs to protect forex reserves, which have fallen to an 11-year low.

Some members of CBN bank monetary policy committee have backed the devaluation of the naira.

Thomas-Greenfield said the parallel currency market in Nigeria was “alive and well,” warning that a rigid exchange rate, capital controls and import bans could undermine President Muhammadu Buhari’s efforts to expand economic growth and fight corruption. Buhari has rejected the idea of devaluing the naira.

“Capital controls that limit access to foreign exchange rewards insiders and undermines the stated goals of Nigeria to increase domestic production because both Nigerian and export investors alike tell us many businesses are unable to obtain the capital to purchase badly needed intermediate goods,” she said.

The naira trades some 40 per cent below the official rate in the black market versus the dollar. The CBN last year pegged the exchange rate to curb speculative demand for the dollar and conserve foreign exchange reserves after it restricted access to hard currency for imports of certain items, frustrating businesses.

The International Monetary Fund (IMF) has called on the Federal Government to lift the curbs and let the naira reflect market forces more closely, as the restrictions have significantly affected the private sector.

Credit: Nation