Connect with us


Naira Crashes to N485 at Unregulated FX Window



Unregulated FX Window

By Adedapo Adesanya

The Naira performed badly against the United States Dollar at the unregulated segment of the foreign exchange (forex) market in Nigeria on Friday.

Business Post gathered from AbokiFX, a platform for tracking black market rates of the Naira to the Dollar and other global currencies, that the domestic currency depreciated by N3 or 0.62 per cent yesterday against the greenback.

At the close of transactions for the day, the Nigerian Naira was selling at N485/$1 in contrast to N482/$1 it traded at the preceding day.

ALSO READ  CBN Cancels Interest Rate Limits for Mortgage Finance

Also, the local currency had a woeful day against the Euro as it went down by N5 to quote at N580/€1 compared with N575/€1 of the previous day, while it further traded flat against the Pound Sterling at N675/£1.

A look at one of the regulated segments of the market, the Investors and Exporters ((I&E) window, the Naira lost N1 or 0.24 per cent against the American currency on Friday to finish at N410/$1 as against N409/$1 it traded on Thursday.

ALSO READ  CBN Insists Naira Not Devalued, Only Readjusted

During the session, the turnover decreased by $128.23 million or 66.7 per cent to $63.88 million from $192.11 million recorded at the preceding session.

At the interbank segment, which is the official exchange rate for government transactions, the Naira traded flat against the Dollar yesterday at N379/$1.

Meanwhile, transactions at the cryptocurrency market on Friday were mixed as three of the seven tokens monitored by Business Post closed bearish.

The Bitcoin (BTC) fell by 0.6 per cent yesterday to sell at N35,500,322.00; Ethereum (ETH) also fell by 0.6 per cent to N1,121,200.00; while Ripple (XRP) declined by 6.2 per cent to trade at N272.14.

ALSO READ  Milost Terminates $1b Deal with Unity Bank, Plans $500m Lawsuit

However, the Litecoin (LTC) appreciated by 5.2 per cent to trade at N133,661; Dash (DASH) rose by 1.3 per cent to sell at N148,900; Tron (TRX) appreciated by 0.6 per cent to sell at N32.39; while the value of the US Dollar Tether (USDT) grew by 4.9 per cent to N638.65.

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.

Click to comment

Leave a Reply


SEC Introduces Regulatory Incubation Program for Fintechs




By Modupe Gbadeyanka

A regulatory incubation (RI) program for financial technology (fintech) companies operating or seeking to operate in Nigeria has been introduced by the Securities and Exchange Commission (SEC).

A circular issued by SEC disclosed that this framework would be officially launched in the third quarter of 2021 and will operate by admitting identified Fintech business models and processes in cohorts for a one-year period.

ALSO READ  NASD OTC Market Rebounds, Closes 0.15% Higher Thursday

Participation in the RI program will encompass an Initial Assessment Phase and the Regulatory Incubation Phase.

The categories to be admitted into each cohort will be determined based on submissions received through the Fintech Assessment Form and communicated ahead of each take-off date.

SEC explained that the scheme was designed to address the needs of new business models and processes that require regulatory authorisation to continue carrying out full or ancillary technology-driven capital market activities.

ALSO READ  FG, States Shared N2.3tr in Q3 2018—NEITI

The RI Program has thus been conceived as an interim measure to aid the evolution of effective regulation which accommodates the innovation by fintechs without compromising market integrity and within limits that ensure investor protection.

It was disclosed that review of completed Fintech Assessment Forms will continue on an ongoing basis and those who consider that there is no specific regulation governing their business models or who require clarity on the appropriate regulatory regime for seeking the authorisation of the commission, are encouraged to complete the Fintech Assessment Form.

Continue Reading


NGX Suspends Trading on GTBank Shares Ahead of Delisting



GTBank Branch

By Dipo Olowookere

In preparation for the eventual delisting of shares of Guaranty Trust Bank (GTBank) Plc from its trading platform, the Nigerian Exchange (NGX) Limited on Friday, June 18, 2021, placed the banking stock on a full suspension.

GTBank, a tier-one lender trading its equities on the exchange, intends to transform into a financial holding company (Holdco) so as to offer a wide range of services it is restricted to do.

Some years ago, the Central Bank of Nigeria (CBN) directed banks in the country to offload their subsidiaries not performing core lending services.

This was after many deposit money banks (DMBs) were delving into different business ventures, including insurance, stockbroking, asset management, amongst others.

ALSO READ  Milost Terminates $1b Deal with Unity Bank, Plans $500m Lawsuit

For the CBN, which regulates the banking industry in Nigeria, most of these banks were losing focus and were not supporting businesses that need funds to grow and then stimulate the economy in the process.

To address this issue, the apex bank asked banks to sell off their non-banking assets and this forced many of them to offload their companies not offering core banking services.

However, there was an opening for banks to still delve into other sectors within the financial and capital markets and this was by operating as a Holdco.

ALSO READ  NNPC May Reduce Petrol Pump Price Soon

A few of them towed this path, including FBN Holdings, Stanbic IBTC Holdings and FCMB Group.

Not wanting to be left out, GTBank is joining the party and to achieve this, it is delisting its banking arm, which is the popular GTBank from the stock exchange.

GTBank will now operate as a private company, while the new Holdco, Guaranty Trust Holding Company Plc, will now be a public company. The shares of this new firm will be listed on the NGX after the delisting of GTBank.

ALSO READ  BREAKING: NSE Suspends Airtel Africa Listing

Last Friday, the stock exchange informed the investing community of the latest development, announcing the suspension of trading on GTBank shares.

In the circular sighted by Business Post, the NGX explained that the rationale behind placing GTBank stocks on full suspension is to “prevent trading in the shares of the bank” in preparation of its “eventual delisting”

Before trading on its stocks was suspended on Friday, GTBank closed at N28.55 on Thursday after appreciating by 50 kobo or 1.78 per cent.

Continue Reading


DLM Capital Remains Best Structured Finance & Securitization Team in West Africa



DLM Capital

A prominent developmental investment bank, DLM Capital Group, has emerged winner at the Capital Finance International (CFI) 2021 awards as the best-structured finance and securitization team in West Africa.

This award has been won consecutively in three years and affirms the group’s strong performance as a leading investment institution and asset manager.

CFI awards seek to identify the contributions of individuals and organizations that contribute significantly to the advancement of economies and truly add value for all stakeholders.

ALSO READ  Tangerine Life Insurance Concludes Acquisition of ARM Life

DLM Capital Group creates bespoke business solutions for alternative financing and harnessing funds for growth.

The group focuses on four key sectors — consumer credit, agriculture, microfinance, and education with a mandate to reduce poverty and improve living conditions for Africans while mobilizing resources for the continent’s economic and social development.

“In the past three years, our portfolio management team’s performance has remained consistent, and our clients have benefited immensely from exposure to our solutions, including the NMRC securitization deal and the DLM Primero BRT Securitization,” said Head of Corporate Communications and Marketing, DLM Capital Group, Ms Chinwendu Ohakpougwu.

ALSO READ  NASD OTC Market Rebounds, Closes 0.15% Higher Thursday

“We are positioned to provide services to an expansive client base of retail, high net-worth and institutional customers.

“DLM Capital Group remains committed to constantly providing financial solutions that will enable our clients to make a difference, and we are honoured to be recognized once again as a reflection of the quality of support offered to our clients,” she added.

ALSO READ  CBN Cancels Interest Rate Limits for Mortgage Finance

DLM has won recognition in West African capital markets, acting as a sole arranger to over 80 per cent of structured finance transactions in Nigeria — and all the securitization transactions. It provides deal structuring, advisory execution and capital raising services across the Nigerian capital market.

The institution recently launched an asset financing scheme and is preparing a venture into digital banking under its subsidiary, Sofri.

Continue Reading

Like Our Facebook Page

Latest News on Business Post


%d bloggers like this: