Business
Naira Appreciates By 50 Kobo Despite I&E Turnover Decline
The month of April 2023 saw a sharp decline in the volume of dollars traded in the Investors and Exporters (I&E) window of the foreign exchange market.
According to data published by FMDQ, the I&E turnover fell by 46% month-on-month (MoM) to $1.4 billion, down from $2.6 billion in March. This is in contrast to the 52.9% increase recorded in March when the I&E turnover rose to $1.7 billion from $1.1 billion in February.
A closer look at the weekly analysis of transactions in April reveals that the I&E turnover experienced some fluctuations during the month.
It stood at $411.73 million in the first week of April, fell by 28% to $293.25 million in the second week, rose by 27% to $375.02 in the third week, and finally dropped by 14% to $320.47 million in the fourth week.
Despite the decline in I&E turnover, the naira appreciated in the I&E window, rising by 50 kobo to N463 per dollar on April 28th from N463.5 per dollar traded on April 3rd, 2023.
A similar trend was observed in the parallel market where the naira appreciated by N7 during the review period. Black market traders reported that the exchange rate for the market fell to N740 per dollar on April 28th from N747 per dollar on April 3rd, 2023.
However, the decline in I&E turnover in April may be attributed to the persisting declining trend in the nation’s external reserves, which fell by $246 million to $35.251 billion on April 28th from $35.497 billion at the end of March.
This represents a 4.9% decrease or $1.83 billion since the end of 2022 when it stood at $37.083 billion.
Economists and analysts have projected a further depreciation of the naira in the coming months, citing the depletion of the nation’s foreign reserve and the hike in inflation rate to 17.5% by the Central Bank of Nigeria (CBN) in January.
Financial Derivatives Company (FDC) analysts noted that the CBN’s increased supply of forex to support the naira has resulted in the constant depletion of the external reserves.
He said: “The constant depletion of the external reserves is a result of the CBN’s increased supply of forex to support the naira. Improved measures to fight against oil theft and other insecurity issues in the oil sector are expected to increase external reserves.
“However, high subsidy payments are likely to create a decline in oil earnings. The continuous depletion of the external reserves is likely to limit the CBN’s ability to support the naira. This could lead to further depreciation of the currency.” he added
In a sharp turn of events, the Nigerian Naira took a significant tumble on Tuesday, plunging to N1,416.57 against the US dollar at the official market.
This staggering drop of N62.36 from the previous trading day represents a 4.60 percent loss, sparking concerns among investors and analysts alike.
Data from the FMDQ Exchange, overseeing the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed this unsettling trend.
Despite the currency’s downward spiral, trading activity surged, with the daily turnover soaring to $160.77 million, compared to Monday’s $84.83 million.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira’s performance remained volatile, trading between N1,445 and N1,301 against the dollar, underscoring the currency’s precarious position in the market.
The management of Dangote Cement Plc., Ibese Plant has assured that it would continue to complement the efforts of the Ogun State Government in the development of its host communities through capacity building for the people, especially the youths.
In a statement, the company declared its commitment to development for the prosperity of the people and host communities for which it is placing a premium on the developmental needs of the communities and empowerment of their indigenes.
During a capacity development workshop for Host Community Representatives, General Manager, Human Asset Management/Admin, Aina Olugbenga, said, Dangote Cement remained committed to implementing value-adding empowerment programs to uplift the people and develop the host communities.
The workshop themed: “Team Building, Inclusivity and Stewardship, a panacea to effective Community Representatives” according to him, was to equip the Community reps with the right skills to offer quality representation for their people. He stated: this capacity building workshop is aimed at developing and strengthening the skills, instincts, and abilities of the communities through their representatives adapt and thrive in a fast-changing world.
Olugbenga noted that the workshop is part of the management’s strategy to improve relationships with the host communities and urged the participants to leverage the knowledge acquired from the workshop to improve service delivery to their people and the Cement plant.
According to him, Dangote Cement, Ibese Plant is committed to building the capacity of the people and institutions in the communities by identifying skill gaps and partnering to up their skills for economic prosperity. This, he stated, was in anticipation that other stakeholders will continue to play their part by partnering and supporting the Company to ensure peaceful co-existence and shared prosperity for all.
Said he, “Apart from reciprocating the good gesture of Dangote Cement by ensuring peace at all times and keeping an open and trusting mind towards the organization, we also desire from our community leaders and representatives who are present here, the ownership of all Social Investment programme, be it training or infrastructure because they are meant for the betterment of our people.”
On behalf of the Community Representatives, Hon. Dayo Ogunyinka thanked the Dangote Cement management for the workshop while assuring continued commitment to effective, efficient and selfless discharge of their roles and responsibilities to their various communities and the Plant.
The Nigeria Deposit Insurance Corporation (NDIC) has announced revisions to the Maximum Deposit Insurance Coverage for banks operating within the country.
NDIC’s Managing Director, Bello Hassan, disclosed the updated coverage benchmarks during a media briefing in Abuja on Thursday.
The coverage for Deposit Money Banks has been increased from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ pass-through from N500,000 to N5 million per subscriber.
Hassan underscored that the objective of the update is to enhance depositor safety, foster public trust, promote the inclusivity of financial services, and ensure the overall stability of the financial sector.
More to follow.. . .. .
House of Reps Member, Isa Dogonyaro Passes Away
JUST IN: Court Denies Yahaya Bello’s Plea To Halt Fraud Trial
On SYNLAB Nigeria’s Secured Patient Portal, Test Result Delivery’s Safe Alternative
Leverkusen Clinch Final Spot After 22 Years
Adeleke On How Osun Is Addressing Unemployment Crisis
Hon Alabo Calls Gov Fubara ‘Smallie’
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
Adeosun: We are investing in infrastructure to grow the private sector
Shell launches Nigeria campaign on energy efficiency
