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Banks Seek Buyers As CBN Floods Market With Forex by Islie: 6:34am On Mar 13, 2017
Banks are awash with dollars, as the Central Bank of Nigeria (CBN) continues to support the naira.

The banks have cleared the backlog of requests for foreign currencies for basic travel allowance, school fees and medicals.

A banker told NAN that his bank had so much dollars that its marketers were asked to encourage customers to request for the greenback.

The source said that the bank wanted to avoid a situation where it would be forced to return excess Forex to the CBN.

Doing so would force the CBN to reduce the quantity of Forex sold to the bank.

Another source from First Bank said following the CBN intervention, the bank had succeeded in clearing all pending requests for Forex as far back as September, 2016.

Also, a source in Guaranty Trust Bank commended the decision of the CBN to flood the market with Forex, thereby allowing the banks to meet legitimate requests from its customers.

It was also gathered from Heritage Bank that prior to now, the bank published the names of individuals and companies it disbursed forex to in a page of any particular newspaper.

“Right now, we take two or three pages in the newspaper to publish names of legitimate individuals and companies that we disbursed forex to.

“We have more than enough foreign exchange to meet the request of our customers for school fees and others,” NAN was told.

In a data released by the CBN, the apex bank, within three weeks, injected more than 1.4 billion dollars for both wholesale and retail intervention into the interbank Forex market.

Mr Ayo Teriba, Chief Executive Officer, Economic Associates, is optimistic that the CBN would be able to sustain its intervention on the forex market.

Teriba told the NAN that increase in oil production and high oil prices had increased the foreign reserve base of the country.

“We are back to a situation where the forex at the disposal of the CBN is likely to go up.

“The CBN could not intervene in the forex market in 2016 because of low oil production, prices and because foreign reserves were also low.

“Today, oil price is up, reserves have also gone up, the outlook of the oil prices is stable and production in Nigeria is going back to capacity; so it has the capacity to intervene.

“In a couple of months, the apex bank should be able to meet all of the demands and all the multiple exchange rates will converge.”



http://thenationonlineng.net/banks-seek-buyers-cbn-floods-market-forex/

lalasticlala

8 Likes

Re: Banks Seek Buyers As CBN Floods Market With Forex by Nobody: 6:39am On Mar 13, 2017
Good move so far. Let's see if it sticks.

6 Likes

Re: Banks Seek Buyers As CBN Floods Market With Forex by eezeribe(m): 6:52am On Mar 13, 2017
Artificial solution to a perennial problem.
We still have far more imports than exports.
how else do we get this dollars if not by export.
If the amount of dollars pumped into the parallel market is not counterbalanced by an equivalent or more amount of dollars received via importation...
I am afraid,this method will soon hit the rocks like the Naira swap deal.

22 Likes 2 Shares

Re: Banks Seek Buyers As CBN Floods Market With Forex by dmostcheerful(f): 6:54am On Mar 13, 2017
Good to hear, thanks to oil from Niger Delta.

28 Likes

Re: Banks Seek Buyers As CBN Floods Market With Forex by Leopantro: 7:06am On Mar 13, 2017
did you notice that no exchange rate was mentioned?

25 Likes 1 Share

Re: Banks Seek Buyers As CBN Floods Market With Forex by bigtt76(f): 7:24am On Mar 13, 2017
Useless banks ....they know how to offload the forex forget their yarns. Let them increase the Master Card Naira limit and lets see if they would have any excess left #eDiots

42 Likes 1 Share

Re: Banks Seek Buyers As CBN Floods Market With Forex by jonnpedro: 7:27am On Mar 13, 2017
Ok
Re: Banks Seek Buyers As CBN Floods Market With Forex by helphelp: 7:28am On Mar 13, 2017
Osinbade doing wonders
Re: Banks Seek Buyers As CBN Floods Market With Forex by SeunWedsLinda(m): 7:28am On Mar 13, 2017
If truly banks are awash with dollars, then the effect should start reflecting in the exchange rate. A dollar should be equivalent to 300 naira now. We are watching.

5 Likes

Re: Banks Seek Buyers As CBN Floods Market With Forex by Aburi001: 7:29am On Mar 13, 2017
Let's see how long this lasts.... shocked

I trust our politicians, they will soon hijack the Bank Managers tongue

1 Like

Re: Banks Seek Buyers As CBN Floods Market With Forex by lordsharks(m): 7:29am On Mar 13, 2017
Hope all goes well sha
Re: Banks Seek Buyers As CBN Floods Market With Forex by akp202(m): 7:30am On Mar 13, 2017
Let's hope this go on n on
Re: Banks Seek Buyers As CBN Floods Market With Forex by tunwumi: 7:30am On Mar 13, 2017
yepa
Re: Banks Seek Buyers As CBN Floods Market With Forex by Emmanuel602(m): 7:30am On Mar 13, 2017
ARSENE WENGER MUST GO
#WENGEROUT

7 Likes 1 Share

Re: Banks Seek Buyers As CBN Floods Market With Forex by dayleke: 7:32am On Mar 13, 2017
Too much of everything is bad ,IMO
Re: Banks Seek Buyers As CBN Floods Market With Forex by johnjay4u2u(m): 7:32am On Mar 13, 2017
dmostcheerful:
Good to hear, thanks to oil from Niger Delta.

Na wa o
Re: Banks Seek Buyers As CBN Floods Market With Forex by vRendoh(m): 7:33am On Mar 13, 2017
helphelp:
Osinbade doing wonders


You re not helping him with this type of praises......make una leave the man alone
Re: Banks Seek Buyers As CBN Floods Market With Forex by burkingx(f): 7:33am On Mar 13, 2017
cool

1 Like

Re: Banks Seek Buyers As CBN Floods Market With Forex by phatasschick(f): 7:33am On Mar 13, 2017
Keeping my fingers crossed.
Re: Banks Seek Buyers As CBN Floods Market With Forex by emi14: 7:34am On Mar 13, 2017
eezeribe:
Artificial solution to a perennial problem.
We still have far more imports than exports.
how else do we get this dollars if not by export.
If the amount of dollars pumped into the parallel market is not counterbalanced by an equivalent or more amount of dollars received via importation...
I am afraid,this method will soon hit the rocks like the Naira swap deal.

Round table analysis. Export can begin with you. Or you're on long tie speaking English about import and exports?

19 Likes

Re: Banks Seek Buyers As CBN Floods Market With Forex by nextprince: 7:34am On Mar 13, 2017
Then increase the limit of withdrawal from Naira denominated account abroad, otherwise

2 Likes 1 Share

Re: Banks Seek Buyers As CBN Floods Market With Forex by Nobody: 7:35am On Mar 13, 2017
The dollar glut though good and yielding the needed results is reactionary and a firebrigade approach at best.
We know the root cause is sound economic policies that encourages cash remittance from the diaspora and export promotion.

5 Likes 1 Share

Re: Banks Seek Buyers As CBN Floods Market With Forex by emi14: 7:36am On Mar 13, 2017
bigtt76:
Useless banks ....they know how to offload the forex forget their yarns. Let them increase the Master Card Naira limit and lets see if they would have any excess left #eDiots

Na only this your point enter my head

2 Likes 1 Share

Re: Banks Seek Buyers As CBN Floods Market With Forex by SmartMugu: 7:36am On Mar 13, 2017
Emmanuel602:
ARSENE WENGER MUST GO
#WENGEROUT
Wetin concern Wenger for this matter now?
Re: Banks Seek Buyers As CBN Floods Market With Forex by tuscani: 7:37am On Mar 13, 2017
bigtt76:
Useless banks ....they know how to offload the forex forget their yarns. Let them increase the Master Card Naira limit and lets see if they would have any excess left #eDiots
Brilliant. I never know you can a sensible reasoning like this on nairaland. I thought it is all about zombie and wailers.

1 Like

Re: Banks Seek Buyers As CBN Floods Market With Forex by HottestFire: 7:38am On Mar 13, 2017
My own is how much is 1usd to Naira now ??

1 Like

Re: Banks Seek Buyers As CBN Floods Market With Forex by helphelp: 7:38am On Mar 13, 2017
vRendoh:



You re not helping him with this type of praises......make una leave the man alone

Oh! So you advice we keep quiet, or send degrading comments about the man. I really need to know why we should leave the man alone from your perspective
Re: Banks Seek Buyers As CBN Floods Market With Forex by burkingx(f): 7:40am On Mar 13, 2017
bigtt76:
Useless banks ....they know how to offload the forex forget their yarns. Let them increase the Master Card Naira limit and lets see if they would have any excess left #eDiots
....My Ecobank Naira Master Card no dey work for Outside Naija woooo cry cry cry

Re: Banks Seek Buyers As CBN Floods Market With Forex by Lordsocrates: 7:41am On Mar 13, 2017
g
Re: Banks Seek Buyers As CBN Floods Market With Forex by Nobody: 7:42am On Mar 13, 2017
I pray forex rates go down for the sake of Nigeria

But please note...This is propaganda intentionally sent out by the Government to make speculators panic. wink

Both sides use it i.e. The Opposition too wildly exaggerate any losses to make FG look bad.

The high current dollar rate is largely because of hoarding.

Let's hope it continues to plunge.

4 Likes

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