See Current Value as Naira Finally Maintains Stability

Current news update as the Nigeria apex bank appears to have finally found an antidote to the faltering value of the naira which has caused massive inflation in the local economy.

 

Information gathered revealed that the naira Thursday remained stable at N365 per dollar in the parallel market. Vanguard survey showed that the parallel market exchange rate closed at N365 per dollar, same as Wednesday.

Report revealed that the stability was buoyed by dollar sale to bureaux de change by the Central Bank of Nigeria (CBN). The apex bank sold $20,000 to each of the 1,345 BDCs across the
country on Tuesday. The apex bank is expected to sell the same amount to the BDCs today. 

It is gathered that the nation’s external reserve continued its downward trend as it dropped to $30.29 billion in the first week of June. Meanwhile the naira depreciated to N365 per dollar yesterday in the parallel market owing to drop in dollar supply. However the Central Bank of Nigeria (CBN) yesterday moved to boost dollar supply into the economy by directing all exporters to register their exports with any bank of their choice using the Form NXP number. 

Data from the CBN showed that the external reserve declined by $40 million in the first six days of June. It dropped from $30.329 billion at the end of May to $30.289 billion as at June 6. 

The reserve has been on the downward trend since May 4th when it peaked at $30.99 billion. Vanguard survey showed that the parallel market exchange rate rose from N363 per dollar on Tuesday to N365 yesterday. 

A Bureaux De Change (BDC) chief executive who spoke on condition of anonymity told Vanguard the N2 depreciation of the naira was due to decline in supply. He said that people with dollars may have decided not to sell due to the lack of attractive bid rates from market operators. 

“It appears they want to hold on to their dollars till when they need it for travelling expenses or when the rate goes up”, he said. 

Meanwhile, the apex bank, in a circular signed by the Director of Trade and Exchange Department, Mr. W.D. Dotring directed all exporters to register their exports with any bank of their choice using the Form NXP number. 

The circular stated: “In the continued effort to ensure that export transactions are carried out through the formal channels, bills of lading in respect of exports from Nigeria shall henceforth carry the Form NXP number of the underlying cargo. 

“Consequently, all exporters are required to register Form NXP with an Authorised Dealer of their choice prior to shipment in line with memorandum 11 section 1 (a) (i). 

“For the avoidance of doubt, it shall be a breach of extant regulation for any shipper to take on-board any cargo for which a Form NXP is not duly completed by the exporter.

“The circular takes immediate effect.”