We’re back with your favourite Market Roundup for Week 20! Here’s everything you need to know about key market events for the previous week, starting with CBN’s increase of Forex allocations to banks for SMEs, tuition fees and travellers.


The Central Bank of Nigeria (CBN) announced an increase in the amount of foreign exchange allocated to banks to meet customer requirements. This is after a request from travelers seeking Forex to pay for travel allowances, tuition and medical expenses, and other intangible assets.

This caution stems from the complaints and challenges those customers face when obtaining foreign exchange from banks. The CBN warned that it will act against any bank that denies any customers the right to buy foreign currency for legitimate purposes.

This includes foreign currency (foreign direct investment) used for personal travel allowance (PTA), basic travel allowance (BTA), tuition and medical expenses, and small and medium-sized enterprise (SME) transactions or foreign direct investment repatriation.) Income.


Brent crude oil hit US$71 last week, as signs of recovery in US demand for Europe led to its second consecutive week of gains, adding oil-producing countries and OPEC + confirmed their plans to reduce 840,000 barrels of production per day. (bpd) in July.

Although oil prices have risen in the past four months, Nigeria is still facing a severe currency crisis. Oil accounts for 90% of Nigeria’s foreign exchange earnings, so why has the country’s currency crisis worsened?

Demand has exceeded Nigeria’s foreign exchange supply. The shortage and negative sentiment have also reduced confidence in the currency market. The demand for foreign currency has exceeded the domestic liquidity of foreign currency. Nigeria, which imported US$53 billion in 2020 and US$8 billion in refined oil products in the same year, has shown that its high dependence on imports is unsustainable.

The departure of the US dollar from the economy will have a negative domino effect on the currency market. For example, the recent shortage of passports is due to the difficulty of passport production companies to obtain CBN dollars.

Companies and manufacturers that require foreign equipment and expertise are vying for funds for their operations. Fuel importers who import petroleum products need U.S. dollars. The airline attributed the increase in ticket prices to a shortage of U.S. dollars. Foreign countries seeking to repatriate funds.

Investors are also caught in this crisis. Nigerians planning to immigrate and study abroad have also joined the ranks. They need foreign exchange to pay for their tuition. Hoarding is a top priority, and people are selling naira assets in exchange for foreign currency, with a view to further depreciation.


An African country that has escaped decades of conflict and corruption is the key to the greening of the global economy.

This is the view of Robert Friedland, the mining giant, whose Kamoa-Kakula company has just started producing copper in the Democratic Republic of Congo. The Canadian billionaire said after traveling to 59 countries for more than three decades that Congo has the world’s best reserves of metals, which are used in everything from electric cars to solar panels to the power grid.

Governments and companies are embracing electrification to keep the world away from fossil fuels, but unless miners can increase production at an unprecedented rate, metal shortages will become the main bottleneck. Congolese deposits are becoming the focus because growth in Chile, a major supplier, has slowed due to deterioration in ore quality and huge investment costs.

Although geologists have long known Congo’s potential, exploration and mining have been hampered by political instability and lack of transparency and infrastructure.

Although geologists have long known Congo’s potential, exploration and mining have been hampered by political instability and lack of transparency and infrastructure.

Some deterrence still exists. Paul Mabolia Yenga, head of the planning agency of the Congolese Ministry of Mines, said the demand for energy is particularly hindering development. Although large miners are building or refurbishing hydroelectric power plants, dirty diesel generators are still the norm in many places.

Legal certainty is still an issue in this Central African country, and producers must negotiate an exemption from the export ban on semi-finished copper. Companies such as Glencore Plc, which operates two large copper and cobalt mines in Congo, have been pushing for amendments to the 2018 revised mining law to increase the country’s share of industry profits.

***All Currency Rates, Fixings, Prices, and Indices were obtained as of Value date, Monday, June 7, 2021.

***BDC Rates: (Bureau De Change)This refers to the FX rates obtainable for valid transactions at the Parallel market i.e Black Market or local Licensed BDC operators in Nigeria

I & E Rates: The Investors’ & Exporters’ FX Window (I&E FX Window) is the market trading segment for Investors, Exporters, and End-users that allows for FX trades to be made at exchange rates determined based on prevailing market circumstances, thus ensuring efficient and effective price discovery in the Nigerian FX market. The I&E FX Window was established by the Central Bank of Nigeria (CBN) via a circular dated April 21, 2017

NAFEX – (The Nigerian Autonomous Foreign Exchange Fixing) is the reference rate for Spot FX operations in the Autonomous FX Market which comprises recognized FX trading segments, including but not limited to the Inter-bank market, the I&E FX Window and any such approved and recognized trading segment as may be defined from time to time. NAFEX is used in the daily valuation and settlement of the OTC FX Futures Contracts.

CBN Official Rate: This is the official rate at which direct transactions can be carried out with the CBN. This rate can only be obtained when direct deals or FX trades are done directly with the CBN.

Sources: FMDQ, Flutterwave Treasury Team, Abokifx, Proshare,.Bloomberg.com, Reuters, Nairametrics, FMDQ, Quartz Africa, Bloomberg

Disclaimer- This report is based on information obtained from various sources believed to be reliable and no representation is made that it is accurate or complete. Therefore, all rates shown here are mark-to-market rates being published for guidance purposes only. Reasonable care has been taken in preparing this document. Flutterwave Technology Solutions Ltd shall not accept responsibility or liability for errors of fact or any opinion expressed herein. This document is for information purposes and private circulation only and may not be reproduced, distributed, or published by any recipient for any purpose without the prior written consent of Flutterwave Technology Solutions Ltd. 

Published by Ifeoluwa Oyeleke

Senior Treasury Analyst