Economy
Just in: Forex flow massively drops to lowest since January as Naira rests on N1600
The forex turnover on the FMDQ, where the exchange rate trades officially, closed at a turnover of just $61 million, the lowest since January 2024.
This is also the second-lowest daily average turnover this year, second only to the $59.6 million recorded on January 8, 2024, which is the lowest this year.
The month of January saw a remarkably low forex turnover as the central bank struggled to find a strategy to restore confidence in the country’s forex policy.
However, since then, the forex market has been stable despite more than 40% depreciation so far this year.
What the data is saying
According to data from the FMDQ, the exchange rate closed trading on Tuesday at N1,601/$1, a slight appreciation from the N1,617/$1 reported on Monday.
The intra-day highs and lows for the week also recorded N1,623 and N1,560, respectively, suggesting further weakening on the high end of trades.
However, the market turnover of just $61.9 million fell from the $77 million reported a day earlier.
Incidentally, the $77 million reported on Monday was also the lowest since January, suggesting that the forex market might be experiencing a squeeze.
One trader informed Nairametrics that this could be a result of the “end hunger” protest that has engulfed most parts of the country, affecting businesses.
Another source suggests this could also be due to the massive stock market sell-offs reported on Monday.
Meanwhile, on the parallel market where the exchange rate is sold unofficially, trades were quoting around N1605/$1, in line with the official rates.
Nigeria’s external reserve also $36.8 billion as of August 5, 2024.
Economy
SEC wants govt agencies to list on NGX
The Securities and Exchange Commission (SEC) says it will encourage government agencies and state owned enterprises to list on the Nigerian Exchange Ltd. (NGX).
Dr Emomotimi Agama, the Director-General (D-G) of SEC in an interview with newsmen in Abuja on Thursday, said the listing of the companies on the NGX would guarantee democratisation of their operations.
Agama said the listing would also guarantee inclusiveness and wealth creation for citizens.
He said the Commission would provide incentives that would encourage as much state owned enterprises to list.
According to him, inclusivity is very critical, because in it, you have ownership and so we all build our industries and the country together.
The D-G said the SEC was also working towards inclusion via technology, adding that the use of technology would make the capital market more attractive, especially to the younger generation.
“That is why we encourage apps, we encourage fintech tools, and that is why we supported the inauguration of the electronic offering platform at the Nigerian exchange.
”We encourage everyone who wants to participate and is qualified to participate in this process, to turn around the way people see investing.
“We want investors to have a beautiful experience, to make it so easy for them that each time they feel like investing, it brings happiness to them.
”We will continue to do that through encouragement of technology, through education,” Agama said.
He said the Commission would ensure that bottlenecks usually experienced in process of investing in the market were removed to rejuvenate the country’s capital market.
(NAN)
Economy
SEE Naira To Dollar Exchange Rate In Black Market Today – 19th September 2024
By Mario Deepromoter
The Dollar to Naira exchange rate in the black market, also known as the parallel market (Aboki fx)? Here’s the exchange rate for today, 18th September 2024, based on information from Bureau De Change (BDC) operators
How much is a dollar to naira today in the black market?
As of today, in Lagos Parallel Market (Black Market), the exchange rate for buying a dollar is N1655, while selling is at N1660 on Wednesday, 18th September 2024.
It’s important to note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market) and advises individuals to approach their banks for official Forex transactions.
### Dollar to Naira Black Market Rate Today:
– **Buying Rate**: N1655
– **Selling Rate**: N1660
### Dollar to Naira CBN Rate Today:
– **Buying Rate**: N1651
– **Selling Rate**: N1652
*Note*: These rates may vary slightly based on location and the specific Bureau De Change operator.
### CBN’s Outlook on External Reserves and Economy:
The Central Bank of Nigeria (CBN) has raised concerns over factors that may hinder the growth of Nigeria’s external reserves in 2024/2025. The removal of fuel subsidies, rising import costs, and increased debt servicing are cited as potential threats to the reserves.
This was detailed in the CBN’s Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the fiscal years 2024/2025. Despite these challenges, the CBN projects overall economic growth for Nigeria, driven by policies supporting agriculture, oil sector reforms, and foreign exchange market adjustments.
“The outlook for Nigeria’s external sector in 2024/2025 is optimistic,” the CBN noted, with expectations of favorable trade terms due to higher oil prices and improved domestic production. However, the bank also highlighted risks such as lower oil revenues, increased import bills, and rising external debt obligations.
Economy
Fuel price hike: OPEC blames tax imposition for increase
The Secretary General of the Organisation of Petroleum Exporting Countries, Haitham Al Ghais, has blamed tax imposition by major oil-consuming countries, not oil prices as the primary driver of fuel costs.
He disclosed this in a recent statement.
His comments come as Nigeria experienced several petrol pump price hikes in the last one year.
The latest was on Monday when the Nigerian National Petroleum Company Limited announced an additional pump price hike in its retail outlets between N950 per liter and N1,019.22.
Speaking on the factors responsible for fuel price hikes, Al Ghais explained that the prices paid by consumers at the pump were determined by various factors, including the price of crude oil, refining, transportation, marketing costs, oil company margins, and taxes.
According to Al Ghais, revenues generated from oil sales are often reinvested by oil-producing countries into the oil sector.
He stated that OPEC member countries reinvested a substantial portion of their revenue into exploration, production, and transportation projects.
On the other hand, the OPEC boss noted that consuming countries’ governments received significant revenue from taxes imposed on petroleum products.
In 2023, the Organisation of Economic Co-operation and Development’s average share of total tax on the final retail price increased year-on-year and amounted to approximately 44 percent.
“Therefore, for many consumers, taxation can be a more significant factor than the original price for crude, in feeling any pinch in their pocket at the pump,” he stated
“It is a sovereign right for countries and governments to develop their taxation systems, but when there is talk of concerns about the effect of high pump prices on the disposable income of populations, it is important to remember how much of this is from taxes flowing to finance ministries around the world”, he said.
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