Economy

FG Applies Sledge Hammer To Stabilize The Naira, Blocks Online Crypto Tradings

Published

8 months ago

February 22, 2024

The Federal Government on Wednesday, February 21, 2024 blocked the online platforms of Binance and other crypto firms to avert what it considers continuous manipulation of the forex market and illicit movement of funds, Premium Times reported on Wednesday.

Sources within the major telecommunication companies in the country told PREMIUM TIMES Wednesday evening that the Nigerian Communications Commission (NCC) communicated the directive to telcos and they had started acting on it.

Apart from Binance, other platforms such as Forextime, OctaFX, Crypto, FXTM, Coinbase, Kraken, among others, were equally blocked.

PREMIUM TIMES earlier reported Wednesday that the government was considering blocking the online platforms of Binance and other crypto firms as part of efforts to avert the free fall of the local currency.

Presidency and regulatory sources said the government decided to move against Binance and other crypto firms following reports that currency speculators and money launderers were using them to execute criminal activities. Authorities believe the ‘criminal activities’ going on on platforms are contributing significantly to the weakening of the naira.

Binance, a digital assets platform, serves as a window for peer to peer transactions allowing users to advertise interest to sell or buy currencies of their choice.

In September 2023, Nigeria’s Securities and Exchange Commission (SEC) placed a disclaimer on Binance Nigeria Limited, saying the platform was “neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal”.

Despite the warning by the regulatory agency, the firm continued its operation, attracting huge patronage especially among urban youths and suspected speculators and money launderers. Aside from suspicions of economic sabotage, officials also speak of national security concerns as the platforms are often patronised by other criminal groups including for payment of ransom.

In its reaction earlier on Wednesday, Binance said “users behaving in a manipulative way” will be removed from its platform.

“As industry leaders, we are working hand in hand with local authorities, lawmakers, and regulators to ensure we act on non-compliance,” the platform added, noting that it is “setting an upper limit for ads, filtering and removing bad ads, requiring and raising deposits for merchants posting ads as well as processes for actioning against any market manipulators.”

On Tuesday, the Nigerian government announced that it was planning to raise $10bn to improve liquidity in the foreign exchange market.

President Bola Tinubu, who was represented by Vice President Kashim Shettima, disclosed this at the inaugural Public Wealth Management Conference in Abuja on Tuesday.

“At the core of this is ensuring optimal management of the assets and investments of the Federal Government towards unlocking their revenue potential. This includes our bold and achievable plan to double the GDP growth rate and significantly increase the GDP base over the next 8 years,” Mr Shettima said.

Meanwhile, the naira tumbled to an all-time low of N1,900 per dollar at the parallel market on Tuesday, amidst speculations and uncertainties about supply constraints in the markets. But at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the local unit appreciated slightly to N1,551.24.

Earlier on Tuesday, the office of the National Security Adviser directed law enforcement agencies to take firm measures against anyone engaged in foreign exchange market speculation.

“In a concerted effort to safeguard Nigeria’s foreign exchange market and combat speculative activities, the Office of the National Security Adviser and the Central Bank of Nigeria are joining forces to address challenges impacting the nation’s economic stability,” the office said in a statement.

“The CBN’s proactive measures to stabilise the foreign exchange market and stimulate economic activities have been commendable. However, the effectiveness of these initiatives is being undermined by the activities of speculators, both domestic and international, operating through various channels, thereby exacerbating the depreciation of the Nigerian naira.”

PREMIUM TIMES

Economy

Naira drops further as NNPCL hikes fuel prices again

Published

3 days ago

October 10, 2024

Kayode Sanni-Arewa

The naira continued its downward spiral against the dollar at the foreign exchange market following another round of fuel price increases by the Nigerian National Petroleum Company Limited.

This latest adjustment marks yet another spike in the pump price of Premium Motor Spirit this year.

According to data from the FMDQ, the naira weakened significantly, closing at N1625.13 per dollar on Wednesday, compared to N1561.76 exchanged on Tuesday.

This represents a depreciation of N63.37.

This drop comes after the naira had made some gains on Tuesday, appreciating by N73.39 against the dollar.

However, on Wednesday, the currency reversed its fortunes, also weakening in the black market where it fell to N1895 per dollar from N1780 the previous day.

Foreign exchange market turnover also witnessed a decline, with daily transactions dropping to $170.60 million on Wednesday from the $253.68 million recorded on Tuesday.

In response to the rising fuel costs, the NNPCL announced a fresh hike, increasing the price of petrol to N1030 per litre from N898 per litre, marking the second consecutive increase in September 2024.

An industry insider, speaking anonymously, commented, “The back-to-back price hikes will likely add more pressure on the already volatile exchange rate.”

A market analyst also noted, “We’re seeing the direct impact of NNPCL’s fuel price adjustments on the naira. With each increase, businesses and consumers face higher costs, which in turn affects demand for foreign exchange.”

Economy

SEE Dollar To Naira Exchange Rate Today 9th October 2024

Published

4 days ago

October 9, 2024

Naijablitznews

By Mario Deepromoter

The official naira black market exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC), and CBN rates.

Please note that the exchange rate is subject to hourly fluctuations influenced by the supply and demand of dollars in the market. As of now, you can purchase 1 dollar at a certain rate now, however, it’s important to remember that the rate can shift (either upwards or downwards) within hours.

What is the Black market dollar to naira today?

The local currency (abokiFx) opened at ₦1,680.00 per $1 at the parallel market otherwise known as the black market, today, Wednesday, 9 October 2024, in Lagos Nigeria, after it closed at ₦1,670.00 per $1 on Tuesday, 8 October 2024.

Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate ₦1,670
Selling Rate ₦1,680
Please, note that the black market exchange rate of dollar to naira in Nigeria is typically higher than the official exchange rate because the Federal Government does not regulate it.

Below you can see the chart for the Nigerian Naira rate today in the official market compared to the Dollar.

1 USD = 1620.2374 NGN
1 Dollars = 1620.2374 Nigerian Naira
The USDNGN rate as of 9 Oct 2024
Disclaimer: NEWSRAIN NIGERIA does not set or determine forex rates. The official NAFEX rates are obtained from the FMDQOTC website. Parallel market rates (black market rates) are obtained from various sources including online media outlets. The rates you buy or sell forex may be different from what is captured in this article.

Source: Newsrain

Economy

CBN reaffirms commitment to financial system stability

Published

4 days ago

October 9, 2024

Kayode Sanni-Arewa

The Central Bank of Nigeria (CBN) has reassured the public of its unwavering commitment to ensuring the stability and reliability of the Nigerian financial system.

The apex bank recognises the crucial role that confidence plays in banking operations and wants to affirm that all deposits in Nigerian banks are secure.

According to a statement signed by the acting director, Corporate Communications, Hakama Sidi Ali, the CBN actively ensures that banks adhere to established regulations and best practices to maintain the integrity of the Nigerian financial system.

“Regular stress testing is conducted to identify potential vulnerabilities, helping to ensure that our financial institutions are resilient. In addition, the CBN has implemented Early Warning Systems that proactively detect and address emerging risks, allowing us to provide timely solutions to any foreseen issues,” the statement stated.

It however said that the bank’s approach to Risk-Based supervision ensures that it focuses its regulatory efforts on institutions that may pose the highest risk to the financial system. This targeted strategy allows it to maintain a robust oversight mechanism while promoting the overall health of the banking sector”.

The statement added that the CBN has established memoranda of understanding with the various countries where Nigerian banks’ subsidiaries are located.

This collaboration, according to the statement, enhances regulatory coordination and ensures that our banks operate within a safe and sound framework in accordance with banking regulations, both domestically and internationally.

The statement maintained that CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds.

The apex bank assured that “It will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in our financial system.”