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CBN Reassures Nigerians On Regular Currency Supply

The Central Bank of Nigeria has informed the public that it has implemented supervisory measures to ensure that depository banks meet the legal foreign exchange needs of clients.

This was revealed by Osita Nwanisobi, the umbrella bank’s acting director in charge of corporate communications, in a statement issued by the bank on Monday.

Nwanisobi informed the press on Monday that the CBN has established a monitoring system to ensure the adequate supply of foreign currency to clients who have supported their claims with the proper documentation. He went on to say that the CBN had obtained from the banks, through their CEOs, assurances that clients with genuine claims would not be turned away.

It also dismissed claims that the CBN planned to convert the coins in clients’ home accounts to naira to deal with an alleged dollar shortage. He pointed out that the people who made such claims were criminal speculators whose goal was to create panic in the currency market.

However, he advised household account holders and other members of the banking public to continue their legal currency exchange transactions and ignore fabricated reports that aim to confront them with the central bank and wreak havoc on the system.

This is following the recent policy development of Foreign Exchange in Nigeria.

Black market speculators lose money as Naira gains 248 basis points in a week

Nigerian black market traders, who have embarked on an aggressive “storage” of premium dollars in anticipation of an upcoming exchange rate hike, are currently posting heavy losses given the CBN regulatory guidelines on BDC.

In the market segment, the local unit closed at N 512.00 for $ 1 on Monday, according to data released during the black market window. This implies an appreciation of N13.00, or 248 basis points, compared to the N525.00 rate that was trading on July 28.

Commercial banks have assured people by email that they can go to any branch to buy dollars for tuition, medical bills in foreign countries, and other foreign exchange transactions.

Several Market analysts predicted that last week’s rise in the parallel market exchange rate would be temporary, noting that banks would rethink the customer experience and adjust services so that retail customers could access currencies more easily.

Therefore, the Central Bank of Nigeria (CBN) has dismissed speculation that it is considering converting foreign currency (FX) into naira-denominated clients’ national accounts. The CBN has ensured that it does not plan to falsify foreign currency deposits in its clients’ accounts, unlike reports on its plans to verify what is allegedly currency unavailability.

He urged local account operators and other members of the financial community to conduct their legitimate forex transactions without considering fictitious stories intended to pit them against the umbrella bank, sparking chaos in the system.

The IMF approves the expansion of the fund of 650,000 million dollars to face the impact of the Pandemic

The governing body of the International Monetary Fund approved a $ 650 billion increase in agency resources to support economically vulnerable countries battling the coronavirus pandemic and the economic recession it has caused.

The 190-country lender said Monday that its board of governors approved the expansion of its reserves known as Special Drawing Rights, the largest increase in the institution’s history.

“It is a historic decision … and a blow to the arm for the world economy at a time of unprecedented crisis,” said IMF Managing Director Kristalina Georgieva. “This will especially help our most vulnerable countries struggling to cope with the impact of the COVID-19 crisis. “

The general SDR allocation will go into effect on August 23. The IMF said the new reserves will be credited to IMF member countries in proportion to their existing quotas with the agency. About $ 275 billion of the new allocation will go to the world’s poorest countries.

The agency is also exploring ways that rich countries could voluntarily funnel SDRs to poorer countries, the agency said.

***All Currency Rates, Fixings, Prices, and Indices were obtained as of Value date, Monday, August 2, 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,, Reuters, Nairametrics, FMDQ, BusinessDay, Bloomberg, TheGuardian

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