The apex bank has frowned at activities of some International Money Transfer Operators (IMTOs) and unlicensed companies who continue to facilitate diaspora remittances into the country in Naira instead of dollars. This represents a 17 kobo gain when compared to the N394.17/$1 that it closed on the previous trading day. Forex turnover, however, dropped by about 14% as pressure on the foreign exchange market continues. READ: Naira stabilizes at black market as external reserve rises by $515 million in 12 days. Forex turnover at the Investor and Exporters (I&E) window dropped by 13.9% on Thursday, January 21, 2021. READ: Nigeria faces prolonged exchange rate crisis as oil prices remain stuck at $40. See excerpt of the CBN circular barring exporters from accessing banking services. This appears as a boost to Nigeria as the country’s crude oil price benchmark for 2020 was $40 while it projected an oil production output of 1.8 million barrels per day. Convert 1 Million in Rupees using online using latest foreign currency exchaneg rates. The exchange rate at the parallel market closed at N475/$1 on the previous trading day of January 20, 2021. The CBN is still struggling to clear the backlog of foreign exchange demand, especially by foreign investors wishing to repatriate their funds. This is to boost the supply of dollars in the foreign exchange market and reduce the high demand for forex by traders. The apex bank has a standing policy that instructs exporters to repatriate exports within 90 days for oil and gas and 180 days for non-oil exports constitute a breach of the extant regulation. The naira has weakened sharply on the black market since last month. The Association of Bureau De Change Operators (ABCON) has appealed to the Central Bank of Nigeria (CBN), to make BDCs pay out agents for diaspora remittances. The exchange rate at the parallel market closed at N475/$1 on the previous trading day of January 20, 2021. the United States Dollar has been maintaining a steady rise in the last few months against the Naira … According to the theory, if more Nigerians are able to sell their dollars at the rate that they want then this could create more liquidity thus reducing the exchange rate disparity. Also, the Naira remained stable against the dollar – closing at N470/$1 at the parallel market on Wednesday, December 30, 2020 – as Nigeria’s external reserve increases by $515 million in 12 days, rising from $34.841 billion as of 18 December 2020, to $35.356 billion as of 30 December 2020. The Naira depreciated against the dollar at the Investors and Exporters (I&E) window on Wednesday, closing at N394/$1. On January 21, 2021, the exchange rate between the naira and the dollar appreciated closing at N394/$1 at the NAFEX (I&E Window) where forex is traded officially. It is to be seen if exporters will comply with this directive or seek other means of avoiding the hammer of the exporters. By repatriating export proceeds via the NAFEX (Investor and Exporter window) the central bank believes this will improve liquidity in the official market and perhaps strengthen the naira at the black market where wired transfers often cost a premium of N5-N10 over the street exchange rate of N475/$1. From January 31, 2021, the CBN will bar exporters who fail to repatriate export proceeds from accessing banking services. Some members of MPC of the CBN had expressed serious concerns over the increasing demand pressure in the country’s foreign exchange market. READ: Continuous increase in inflation rate may weaken economy – CBN report. We that is living in United Kingdom should be coming home with our British pounds in CASH, Nigerian central bank should carry their cross. Some rely on complex intercompany transactions to avoid repatriating the forex through the NAFEX window, In a bid to ensure prudent use of foreign exchange resources, the Central Bank of Nigeria had earlier. READ: Naira strengthens at NAFEX window despite 38% drop in dollar supply. This they believe will help to stabilize the exchange rate and discourage hoarding. It went further to say that it shall not hesitate to authorize the closure of the accounts of unlicensed operators in Nigerian banks, including being barred from accessing banking services in Nigeria. READ: The dangling fate of indigenous oil upstream operators. It promised continued monitoring of developments in this regard, adding that it would also issue further guidance as appropriate. You may contact him via his email- [email protected]. There are 100 fils in a dirham. See excerpt of the CBN circular barring exporters from accessing banking services. According to a report from Reuters, the naira is expected to remain stable in the coming week as currency traders watch for policy details at CBN’s first MPC meeting in 2021. However, the CBN now wants this payment to be made in dollars. It also sold for as low as N390/$1 during intra-day trading. This is the highest level since July 2020 and a sign that higher oil prices and steady output levels may be contributing significantly to Nigeria’s foreign exchange position. The new circular explains who diaspora remittances are to be paid to beneficiaries in Nigeria only in foreign currency and not naira. The Central Bank of Nigeria (CBN) has issued a circular setting out the Modalities for Payout of Diaspora Remittances. Forex turnover at the Investor and Exporters (I&E) window dropped by 13.9% on Thursday, January 21, 2021. There are fears that the exchange rate at the black market might be under pressure in the coming weeks as importers scramble for dollars to meet their demands. The apex bank has frowned at activities of some International Money Transfer Operators (IMTOs) and unlicensed companies who continue to facilitate diaspora remittances into the country in Naira instead of dollars. Nigeria has a production capacity of 2.5 million barrels per day but is subject to OPEC’s crude oil production cuts, which are expected to help sustain higher oil prices. Read in Malayalam. Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment, technology, video and pictures. googletag.pubads().definePassback('/42150330/nairametrics/Nairametrics_incontent_new', [300, 250]).set("page_url", "%%PATTERN:url%%").setClickUrl("%%CLICK_URL_UNESC%%").display(); Get the scoops and market intelligence that can helpyou make better investment decisions right in yourmailbox. By repatriating export proceeds via the NAFEX (Investor and Exporter window) the central bank believes this will improve liquidity in the official market and perhaps strengthen the naira at the black market where wired transfers often cost a premium of N5-N10 over the street exchange rate of N475/$1. This is the highest level since July 2020 and a sign that higher oil prices and steady output levels may be contributing significantly to Nigeria’s foreign exchange position. Learn how your comment data is processed. The exchange rate disparity between the parallel market and the official market is about N81, representing a 17% devaluation differential. The opening indicative rate was N394.16 to a dollar on Thursday, the same rate that was recorded on Tuesday, January 20, 2021. In a circular posted on its website, the apex bank instructed banks to transfer all diaspora remittances to the domiciliary accounts of the beneficiaries or pay the customers in foreign currency. It means they can for instance receive foreign transfers such as Western Union or Moneygram, withdraw it in dollars and then sell at the black market rate or anywhere else they want to. MFBs, DMBs, others get new lending limit directive from CBN, Explained: The variables that took Nigeria’s foreign exchange reserves to $40 billion, ‘Banks lost N15billion to fraud, cyber-crime in 2018’, Naira crashes to N500/$1 at black market as CBN adjusts exchange rates, CBN revokes licenses of 7 Payment Service Providers, More pressure on the naira as Diaspora remittances to drop by 20%, Nigeria’s forex devaluation timeline – 2020, Continuous increase in inflation rate may weaken economy – CBN report, UBS warns Bitcoins could disappear like Myspace, Naira stabilizes at black market as external reserve rises by $515 million in 12 days, Naira strengthens at NAFEX window despite 38% drop in dollar supply, The dangling fate of indigenous oil upstream operators, Nigeria faces prolonged exchange rate crisis as oil prices remain stuck at $40. READ: Naira strengthened at black market as external reserve loses $437 million in 2 weeks. The external reserve has risen to $36.464 billion as of January 19, 2021. Also, the exchange rate at the black market where forex traded unofficially still remained flat at N475/$1. It means they can for instance receive foreign transfers such as Western Union or Moneygram, withdraw it in dollars and then sell at the black market rate or anywhere else they want to. The exchange rate disparity between the parallel market and the official market is about N81, representing a 17% devaluation differential. Population increased from 120 million in 2000 to 160 million in 2010). Forex turnover rose by 27.6%, as the Naira’s exchange rate at the NAFEX window depreciated against the dollar to close at N394/$1 during intra-day trading on Wednesday, December 30. Nairametrics reported on Wednesday that the government may have taken receipt of the $1-1.5 billion World Bank Loan. Nnaji. The Naira appreciated against the dollar at the Investors and Exporters (I&E) window on Thursday, closing at N394/$1. The exchange rate between the naira and the dollar appreciated closing at N394/$1 at the NAFEX window. He worked as a graduate Teaching Assistant in the Federal College of Education Kano and is also a trained National Peer Group Educator on Financial Inclusion, Its Good if they can be paid it in dollar but it affected some people that want to send money to their family or received money but they have to solved the issues quickly so it will not affect those people that using western Union, moneygram and Ria. Welcome to the Dollars to Pounds page, updated every minute between Sunday 22:00 and Friday 22:00 (UK) 1 USD = 0.7283 GBP Looking to make a Dollars to Pounds money transfer? Nigeria is in DEEP MESS. This site uses Akismet to reduce spam. There are indeed banknotes of 1 million dollar, but these are not legal tender, nor are they official banknotes. Although oil revenues contribute 2/3 of state revenues, oil only contributes about 9% to the … READ: The dangling fate of indigenous oil upstream operators. Zomato To Raise 500 Million Dollars In Latest Fundraising: Report. The apex bank in the circular said that the measures were intended to promote transparency, grow diaspora remittances and significantly improve foreign exchange inflows into Nigeria. He has worked in research and marketing departments of three top commercial banks. READ: UBS warns Bitcoins could disappear like Myspace. Nairametrics reported on Wednesday that the government may have taken receipt of the $1-1.5 billion World Bank Loan. In lieu of this, all concerned exporters are urged to comply with the directive before the specified date. Your email address will not be published. The exchange rate is still being affected by low oil prices, dollar scarcity, a backlog of forex demand, and a shaky economy that has been hit by the coronavirus pandemic. This is not a surprise considering his chain of investments. In a letter issued by one of the commercial banks to its exporters, and seen by Nairametrics, it cited the CBN’s new circular stating that it will bar exporters who do not repatriate from accessing banking services. This disclosure was contained in a circular titled, ‘Modalities for Payout of Diaspora Remittances’, issued by the CBN on Friday, January 22, 2021, and signed by its Director Trade and Exchange Department, Dr O.S. The external reserves have increased by $1.09 billion since December 31, 2020, when it closed the year at $35.3 billion. Most exporters already find a way to avoid these hammers by opening foreign bank accounts where most of the export proceeds are warehoused and then sold at the black market. READ: UBS warns Bitcoins could disappear like Myspace. 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