Economy
Naira Depreciates at BDC Segment as CBN Resumes Weekly FX Sales
By Adedapo Adesanya
The value of the Naira further depreciated against the US Dollar at the Bureaux De Change (BDC) segment of the foreign exchange (forex) market on Thursday as the Central Bank of Nigeria (CBN) announced that it will resume the suspended weekly forex sales to operators from Monday, August 31.
In a circular signed by the Director of Trade and Exchange Department of the CBN, Mr O.S. Nnaji, it was stated that BDCs must not exchange the naira at more than N386/$.
The apex bank said the decision to resume sales of the foreign currency to BDCs is to allow travellers to get forex as the country prepares to resume international flights from next week.
The federal government had announced yesterday that international flights will resume on September 5 instead of the initially announced August 29.
Providing a breakdown of the rates, the CBN said: “Please be advised that the applicable exchange rate for the disbursements of proceeds of IMTOs for the period Monday, August 31 to Friday, September 04, 2020, is as follows:
IMTSOs to banks: N382/$1; Banks to CBN: N383/$1; CBN to BDCs: N384/$1; and BDCs to end-users: Not more than N386 volume of sale to each market is $10,000 per BDC.
The apex bank said FX sales to BDCs will hold on Mondays and Wednesdays in the first instance.
A look at the performance of the Naira against the US Dollar at the BDC window yesterday, according to data gathered by Business Post from the Association of Bureaux De Change Operators (ABCON), showed that the local currency dropped against the greenback across the four major locations tracked.
At the Lagos BDC market, the domestic currency depreciated by 40 kobo against the Dollar to sell for N477/$1 as against the previous rate of N476.60/$1, while it appreciated by N1 against the Pound to close at N617/£1 versus N618/£1 and closed flat on the Euro at N552/€1.
In Abuja, the local currency weakened against the US Dollar by N2 to N477/$1 from N475/$1 and remained unchanged against the Pound at N620/£1 and as well traded flat against the Euro at N555/€1.
At the Port Harcourt market, the Naira lost 50 kobo against the greenback to close at N476/$1 in contrast to N475.50/$1 it previously closed but appreciated by N2 on the Pound to N612/£1 from N614/£1 and closed flat against the Euro at N553/€1.
At the Kano BDC market, the local currency depreciated by N2 against the American currency to quote at N477/$1 as against N475/$1 on Wednesday and fell by N13 against the Pound to N608/£1 from N595/£1 while on the Euro, it lost N4 to trade at N552/€1 versus N548/€1.
At another segment of the market, the Investors and Exporters (I&E), the Naira gained 25 kobo against the greenback to close at N385.75/$1 in contrast to N386/$1 a day before.
At the close of the session, investors exchanged a total of $43.16 million compared to the previous session’s $14.47 million, indicating a day-on-day rise of 198.3 per cent or $28.69 million.
At the black market, the local currency remained stable against the American currency at N477/$1. It, however, lost N3 each on the Pound and the Euro to close at N615/£1 and N555/€1 from N612/£1 and N552/€1 respectively.
At the interbank window yesterday, the Naira/Dollar exchange rate remained at N379/$1.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn