Anxiety is brewing as the naira loses against the dollar on Wednesday – as it did the previous day.

Its steady rise in the weeks past had been a source of hope and national pride but it further depreciated at the official market, trading at N1,308.52 to the dollar.

Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that the Naira lost N8.37.

This represents a 0.64 per cent loss when compared to the previous trading date on Tuesday, April 23, when it exchanged at N1,300.15 to a dollar.

However, the total daily turnover further increased to 197.54 million dollars on Wednesday, up from 133.65 million dollars recorded on Tuesday.

Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,367 and N1,098 against the dollar.

The News Agency of Nigeria (NAN) reports that Central Bank of Nigeria (CBN) had sustained ongoing reforms which were yielding results with steady appreciation of the Naira until the local currency experienced a recent four days decline.

Supporting the CBN’s efforts, the Economic and Financial Crimes Commission (EFCC) froze over 300 accounts linked to illicit forex trading to ensure the safety of the foreign exchange market.

EFCC Chairman, Ola Olukoyede, announced the freezing of the accounts on Tuesday, during an interactive meeting with media executives in Abuja.

Olukoyede said the anti-graft agency discovered another scheme other than the crypto trading platform, Binance, and its system.

The EFCC boss noted that there were people within the system who were carrying out activities worse than Binance using P2P platforms.

He said the 300 illicit accounts would have led to a crash of the Naira value to remove the steady gains within a week if the EFCC had not moved in.

-NAN

For the Nigerian currency, it is still the song of fallen bones shall rise again.

It on Monday further spelt stability for the economy as it appreciated at the official market, trading at N1,136.04 to the dollar.

It further lent strength, kudos and better hope for the Tinubu administration though prices of commodities are still being expected to phenomenally go down.

Data from the official trading platform of the FMDQ Exchange revealed that the Naira gained N6.34.

This represents a 0.55 per cent gain when compared to the previous trading date on Friday, April 12, exchanging at N1,142.38 to a dollar.

However, the total daily turnover reduced to 251.60 million dollars on Monday down from 281.34 million dollars recorded on Friday.

Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,227 and N1,000 against the dollar.

The Naira further gained at the official market, trading at N1,262.85 to a dollar on Wednesday.

Data from the official trading platform of the FMDQ revealed that the Naira gained N15.73.

This represents a 1.23 per cent appreciation when compared to the previous day’s trading on Tuesday, exchanging at N1,278.58 to a dollar.

However, the total turnover increased to $166.18 million on Wednesday, up from $111.18 million recorded on Tuesday.

Meanwhile, at the Investor’s and Exporters’ (I&E) window, the Naira traded between N1,296 and N1,210 against the dollar.

The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 33 pips to 7.1049 against the dollar on Wednesday, according to the China Foreign Exchange Trade System.

In China’s spot foreign exchange market, the yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.

The central parity rate of the yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

If the prediction of the General Overseer of the Redeemed Christian Church of God (RCCG) is to be embraced, almost every Nierian should burst out dancing now. The great man of God has said has foreseen a miracle ahead of the naira which, according to him, will soon bounce back and compete favourably with the naira. Only those who should reject it are those benefitting from the intrigues that make it exchange N900 plus to a dollar.

Well, those abroad, who earns voluminous naira from tiny dollars they send home, may also worry about the miracle. Joking apart, however, a majority of them will also want Nigeria to change for the better since home is supreme.

Besides, the words of a man of God like Adeboye ought to be that of God. There should, therefore, be no cause to doubt or reject it especially on a crucial matter like that of the naira vis a vis the economy. While doubting Thomases and core realists would thus laugh at the prediction, it may be wise for one to claim and embrace it since it is to the benefit of all. President Bola Tinubu must actually claim the prophecy with all his heart then take necessary steps to make it real.

During the Sunday 4 monthly service tagged Uncommon Miracles at the church, Adeboye said: “The days when Naira will be stronger will come back; those glorious days will return when that happens you will know.”

Adeboye noted that miracles connoted something that is unique, stressing that a lot of times they may not be comprehensible by many.

He explained how God granted him usual testimonies, some of which many people couldn’t believe.

“Miracle is totally unusual. God can give you a miracle that will be difficult to share,” added the revered man of God.

The Association of Bureaux De Change Operators of Nigeria (ABCON) says the widening gap between the official and parallel market exchange rates was being driven by acute dollar scarcity.

The body said this was due to the continued suspension of foreign exchange sales to BDCs by the Central Bank of Nigeria (CBN).

ABCON stated this in its Quarterly Economy Review for the first quarter of the year 2022 expressing concern over the inability of the fiscal and monetary authorities to address the wide gap between the parallel market and multiple exchange rates in the country.

The review showed that the gap between the official and parallel market exchange rates (premium) widened to N171.83 per dollar at the end of first quarter (Q1’22) from N106.33 per dollar on Wednesday July 28, barely a day before the apex bank suspended dollar sales to BDCs.

“A premium is the outcome of market restrictions that drive the non-official supply and demand for foreign currency, a symptom of inconsistency in fiscal and monetary policies.

“It also showed lack of credibility of exchange rate policy, given the level of foreign reserves.

“That fiscal and monetary policy in Nigeria cannot curtail the premium that rent seeking dealers in foreign exchange were pursuing, and it is worrisome and contributes highly to the distortions in the economy.

“Multiple exchange rates cause distortions by manipulating relative prices in the economy and widen opportunities for rent-seeking behaviour for those who have access to the lower exchange rates.

“When the multiple exchange rates are corrected, it would promote a more efficient application of market-driven relative prices to allocate resources in the economy,” ABCON said.

The Association also highlighted the nation’s huge public debt and increasing level of poverty and urged the Federal government to reconsider its strategy of relying on borrowing to grow the economy.

“The Nigerian economy is currently faced with two major interrelated problems: heavy indebtedness and the incidence of poverty. Together, they have important implications for growth possibilities.”

ABCON urged the FG to also reconsider its current strategies of total dependence on debt for the survival of the economy, otherwise it may run the country into coma.

It noted that the inability to address the problem of increasing poverty would necessarily fuel crime and insecurity.

On the way forward, the Association recommended the need for a common understanding by all stakeholders, and an agreement on a set of coherent policy responses from a wider development perspective, to complement all current approaches.

“Lack of transparency and accountability can exacerbate financial weakness at the firm and national levels and complicate efforts to resolve crises.

“There should be medium to long term economic structural plans to redirect the economy from a totally import dependence to a foreign exchange earning one, and also from a crude oil based economy,” ABCON said.
ALSO READ;Buried dollars: Court acquits former NNPC boss Yakubu of laundering
The review added that rapid employment opportunities for the youth, through the introduction of modern agricultural development processes would impact the economy positively.

The Naira on Thursday gained one point to appreciate against the dollar at the parallel market in Lagos.

The Naira exchanged at N439 to a dollar at the parallel market in Lagos, while Pound Sterling and the Euro closed at N580 and N495 respectively.

Investors at the investor’s window traded the naira at N386.25 to a dollar as market turnover stood at 92.18 million dollars.

However, the naira was sold at 379 to a dollar at the official Central Bank of Nigeria (CBN) window.

The planned sale of foreign exchange to Bureau De Change Operators nationwide has sent panic to the camp of speculators, thus leading to the rebounding of the naira at the parallel market.

Oil prices recovered on Tuesday, erasing overnight losses, as investors moved into risk assets and away from the safe-haven U.S. dollar, which tumbled to multi-year lows.

Brent crude futures climbed 49 cents or 1.1 per cent to $45.77 a barrel at 0406 GMT.

The U.S. West Texas Intermediate (WTI) crude futures rose 37 cents or 0.9 per cent to $42.98 a barrel.

Both benchmark contracts fell around one per cent on Monday on worries about oil oversupply, with global demand stuck below pre-COVID levels.

The U.S. dollar was last down 0.04 per cent at 92.146 against a basket of currencies, after hitting its lowest since May 2018 in the wake of the U.S. Federal Reserve’s policy shift on inflation announced last week.

“It (the policy shift) really cements the fact that you’re looking at negative real rates for the U.S. which will not be great for the U.S. dollar.

“That’s good for commodities,’’ said Louis Crous, Chief Investment Officer at BetaShares, an Australian exchange-traded funds provider.

The weakening U.S. dollar makes oil and other commodities priced in dollars more attractive to global buyers.

Overall, the market remains focused on the stalled recovery in fuel demand as countries continue to battle the coronavirus pandemic with rolling COVID-19 lockdowns, analysts said.

“This has created plenty of uncertainty about whether demand for transportation fuels will ever return to normal,’’ ANZ Research said in a note.

Ahead of the release of U.S. stockpile data from the American Petroleum Institute industry group, a Reuters’ poll found analysts expect U.S. crude stocks fell by about two million barrels in the week to Aug. 28.

Gasoline inventories are seen falling by 3.6 million barrels, while distillate inventories, which include diesel and heating oil, are expected to drop by 1.5 million barrels, six analysts polled by Reuters estimated.

Meanwhile, enjoy this short video and don’t forget to subscribe.