Economy

Naira Trades at N375/$ at Black Market

Published

5 years ago

20/03/2020

By Adedapo Adesanya

The Naira appreciated against the US Dollar and other major foreign currencies at the parallel market on Thursday ahead of the effective date for the travel restrictions placed on some countries by the Nigerian government.

On Wednesday, the federal government bowed to pressure by announcing a travel ban on 13 countries highly affected by the deadly coronavirus. This followed the recording of fresh cases of the COVID-19 disease in the country.

To stop the spread of the coronavirus, Nigeria, from today, Friday, March 20, 2020, is restricting entry into the country for travellers from 13 countries with more than 1,000 cases recorded. On Thursday, a day after the decision was announced, the country’s cases reached 12.

The restriction will apply to travellers from China, Italy, Iran, South Korea, Spain, Japan, France, Germany, the United States, Norway, UK, Netherlands and Switzerland.

The federal government also directed civil servants not to travel out of the country at this crucial period.

At the parallel or black market of the foreign exchange market, the Naira appreciated by N5 against the Dollar to close at N375/$ as against N380/$ it recorded on Wednesday.

The domestic currency further gained N10 on the Pound to sell at N480/£1 compared with the previously quoted rate of N490/£1, while against the Euro, it appreciated by N1 to N414/€1 from N415/€1.

However, at the Investors and Exporters (I&E) segment of the currency market, the Naira depreciated by N2.33 or 0.63 percent against the greenback to trade at N370.35/$1 in contrast to N368.02/$1 it was exchanged on Wednesday.

Business Post observed that the depreciation of the domestic currency came despite a decline in the value of transactions achieved yesterday at the market.

According to data obtained from the FMDQ Securities Exchange, traders transacted $505.73 million at the investors’ window yesterday compared with $982.80 million traded at the previous session, indicating a decline of 49 percent or $477.07 million.

A look at another segment of the market, the Bureaux De Change (BDC) window, showed that at the Lagos BDC market, the Nigerian currency traded flat against its American counterpart at N376/$, while it depreciated by N5 against the British currency at N485/£1 versus N490/£1 and gained N1 against the Euro to trade at N414/€1 compared with the previous exchange rate of N415/€1.

According to the data from the Association of Bureau De Change Operators of Nigeria (ABCON), the Naira traded flat against the Dollar, Pound and Euro at the Abuja BDC market, closing at N374/$1, N479/£1 and N410/€1 respectively.

Likewise, in Port Harcourt, the exchange rate of the domestic currency against the three major foreign currencies remained unchanged. The Dollar was traded at N372, the Pound at N486 and the Euro at N415.

But at the Kano BDC market, the Naira depreciated against the US Dollar by N5 to sell at N374/$1 in contrast to the previous N369/$1 rate. It, however, traded flat against the Pound at N480 and the Euro at N417.

At the interbank segment of the foreign exchange market on Thursday, the official Naira/Dollar exchange rate of the Central Bank of Nigeria (CBN) remained at N307/$1.

Economy

Afriland Properties, Geo-Fluids Shrink OTC Securities Exchange by 0.06%

Published

2 hours ago

12/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.

The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.

Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.

At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.

The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.

When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.

Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.

Economy

Naira Weakens to N1,547/$1 at Official Market, N1,670/$1 at Black Market

Published

3 hours ago

12/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.

It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.

The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.

At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.

As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.

A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.

The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.

The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.

The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.

Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.

Economy

Dangote Refinery Makes First PMS Exports to Cameroon

Published

4 hours ago

12/12/2024

Aduragbemi Omiyale

By Aduragbemi Omiyale

The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.

In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.

However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.

In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.

Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.

Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.

“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.

“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.

His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.

“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.

“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”