FX Crisis Hits Harder as Nigerians Buy Dollar at N720 at P2P – Business Post Nigeria

By Adedapo Adesanya
The value of the Naira to the US Dollar depreciated heavily by N13 or 1.8 per cent at the Peer-to-Peer (P2P) segment of the foreign exchange (forex) market on Thursday, July 28, trading at N720/$1 compared to N707/$1 on Wednesday as the FX crisis in the country worsens.
Also, at the parallel market, the Nigerian Naira lost N5 against the greenback to sell for N710/$1 compared with the preceding day’s N705/$1. At midday, the exchange rate was N715/$1 and by evening, it closed at N710/$1.
Meanwhile, the local currency found succour in the Investors and Exporters (I&E) window of the FX market, appreciating by N3.80 or 0.88 per cent to close at N426.20/$1 versus Wednesday’s value of N430/$1.
This came as the daily turnover published on FMDQ Securities Exchange stood at $129.13 million, 1.9 per cent or $2.44 million higher than the $126.69 million achieved the day before.
In the interbank segment of the market, the Naira witnessed a downward movement of N3.07 against the Pound Sterling as it closed at N501.73/£1 versus the preceding day’s N498.66/£1 and against the Euro, the local currency lost 56 Kobo to close at N422.19/€1 in contrast to Wednesday’s rate of N421.63/€1.
In the cryptocurrency market, Bitcoin maintained its bull run as it surpassed the $24,000 mark after gaining 3.8 per cent to sell for $24,051.89.
Buying interest in cryptos picked up sharply on Wednesday following the US Federal Reserve’s decision to hike interest rates by 75 basis points.
Solana (SOL) was the highest mover as it appreciated by 10.5 per cent to $43.98, Litecoin (LTC) went up by 7.4 per cent to trade at $64.27, and Dogecoin (DOGE) saw a 7.1 per cent jump to trade $0.0714.
Ripple (XRP) recorded a 5.8 per cent rise to trade at $0.3791, Cardano (ADA) also added 5.8 per cent to quote at $0.5368, Ethereum (ETH) grew by 5.7 per cent to sell at $1,736.02, while Binance Coin (BNB) recorded a 4.3 per cent gain to settle at $280.94.
However, TerraClassicUSD (USTC) further moved downward by 1.2 per cent to sell for $0.0371, while the US Dollar Tether (USDT) retained its previous day’s value of $1.00.
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Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.
Naira Appreciates to N680/$1 at Black Market as BDCs Bite Fingers
Naira Falls to N736/$1 at P2P, N429/$1 at Official Market
Naira Trades at N715/$1 in Lagos Parallel Market
Naira Plunges to N707 Per Dollar at P2P FX Segment
FX Hoarding Weakens Naira to N670/$1 in Parallel Market
Naira Crashes to N660/$1 at Black Market as Currency Speculators Take Charge
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By Aduragbemi Omiyale
The suspension placed on C&I Leasing Plc by the Nigerian Exchange (NGX) Limited has finally been lifted after the organisation did the needful.
On July 1, 2022, the NGX announced that its regulating sister company, NGX Regulation, approved the suspension of the firm over its failure to file its financial statements.
C&I Leasing was among the other organisations prevented from trading their equities on the stock exchange over the same issue.
But after filing the results, the embargo was lifted last week, allowing investors to buy and sell the company’s shares again on the bourse without hassle.
In a circular issued on Friday, July 29, 2022, the local bourse confirmed that “the suspension placed on trading on the shares of C&I Leasing” has been lifted.
Earlier in the month, the exchange had announced the “suspension of nine listed companies for non-compliance with the provisions of Rule 3.1: Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (Default Filing Rules).”
This rule authorised the bourse to suspend any firm that “fails to file the relevant accounts by the expiration of the cure period.”
Before this sanction is given, the exchange must have sent “to the issuer a second filing deficiency notification within two business days after the end of the cure period” and then send a notice to the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.”
In the disclosure last Friday, the NGX said it removed the embargo because the company “has now filed its audited financial statements for the year ended December 31, 2021, and unaudited financial statements for the quarter ended March 31, 2022.”
By Dipo Olowookere
The Director-General of the Debt Management Office (DMO), Ms Patience Oniha, has been commended for running the agency efficiently, which has increased the confidence investors have in the debt market.
The chief executive officer of the Nigerian Exchange (NGX) Limited, Mr Temi Popoola, who gave this commendation last week, said the domestic capital market was now attractive to various categories of investors because of the DMO boss.
Speaking at the closing gong ceremony last Thursday, Mr Popoola said the DG has made it easy to see the journey and the developments happening in the Nigerian debt story.
Last week, the NGX organised the event to commemorate the listing of a triple-tranche $4 billion Eurobonds, $1.25 billion Eurobonds and the N250 billion Sukuk on the exchange.
The NGX chief also used the occasion to assure stakeholders of the bourse’s capacity to be a veritable platform for listings and trading instruments.
“We realise that we also need to diversify our business model by attracting new and young Nigerians to the capital market.
“Events like this are important to us because it gives us the opportunity to diversify the narrative of the Nigerian capital market and we will do everything we can to attach the necessary visibility to make sure that these instruments can trade efficiently, just as we continue the story around the market,” he said on the renewed focus of the NGX brand.
In her remarks, Ms Oniha commended the exchange for providing a credible platform for investors to trade securities issued by the government and corporate organisations.
She said the “Sukuk transaction, which began in 2017, gradually improved with the first two transactions being N100 billion and the last one now at N250 billion.”
“With all the work market operators are doing, people are now getting more familiar and comfortable with these transactions.
“At DMO, we are supporting the government and creating more investment opportunities just as we are also collectively supporting securities transactions at NGX,” she added.
Business Post reports that the debt office had listed on the NGX the triple-tranche $4.00 billion Eurobonds comprising 6.125% $1.25 billion notes due September 2028; 7.375% $1.5 billion notes due September 2023; and, 8.25% $1.25 billion notes due September 2051, on Monday, January 31, 2022.
Other securities listed on the exchange were the N250.00 billion 10-year 13.00% Ijarah Sukuk due 2031 and the 8.375% $1.25 billion Eurobond due March 2029, on Tuesday, July 5, 2022, and Thursday, July 7, 2022, respectively.
By Dipo Olowookere
Normalcy seems to be returning to the unofficial segment of the foreign exchange (forex) market in Nigeria because the Naira is trading stronger against the United States Dollar at the moment.
About two weeks ago, the Naira started a free-fall in the parallel market after the Governor of the Central Bank of Nigeria (CBN) said security operatives would go after those converting the local currency to hard currencies.
His remarks, which were made after the Monetary Policy Committee (MPC meeting in Abuja, sent a panic signal into the financial system, sinking the Naira to an all-time low of N715/$1.
However, calm has returned to the market as the Nigerian Naira traded on Monday after at the black market at N680/$1, according to data obtained by Business Post from the various FX traders this reporter interacted with in Lagos.
It was observed that on the buy side, the Dollar is being bought from customers at N670/$1 and it is with caution as most forex traders are scared of biting their fingers in regrets.
“Walahi, I am not willing to buy the Dollar beyond N670/$1 because I don’t know if it will further go down. The ones I bought at N700/$1 and N690/$1 last week thinking it would further go up has made me lose some money and I don’t want to lose more,” one of the forex hawkers at the Alade Market in Ikeja, Lagos, who identified himself as Abdullahi, told this newspaper.
At the Olugbede Model Market in Egbeda, also in Lagos, another FX trader, Adamu Isa, said buying the Dollar is with caution at the moment because nobody knows what will happens next.
“I have stopped buying Dollars at the moment, I only sell and it is for N680/$1. I can manage to buy at N690/$1 but it won’t be many,” he said.
Business Post further learned that more forex traders were apprehended by securities operatives for alleged currency speculation. According to information gathered, some were arrested at the Lagos airport and there are indications that this action may affect the value of the Naira in the coming days and currency hawkers would likely fight back and create an artificial scarcity, which would put the Naira into another round of pressure.
Last week, after the Senate summoned Mr Emefiele, officials of the Economic and Financial Crimes Commission (EFCC) raided some bureaux de change (BDC) operators in Abuja. Similar actions were taken across major cities of the federation, resulting in the local currency gaining weight against its American counterpart in the unauthorised FX market.
This is not the first time forex traders are being hunted by security officials as in 2016, the EFCC went after BDCs in a bid to clamp down on their operations.
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