Oyetunji Abioye

The local currency gained N12, rising from 367 to 355 against the United States dollar at the parallel market on Thursday, a day after the Central Bank of Nigeria released the much-awaited foreign exchange market framework.

Forex dealers and analysts said the naira-dollar exchange rate, which closed flat at 367 on Wednesday, started reacting to the new policy following a rise in the supply of the greenback at the parallel market on Thursday.

The International Monetary Fund on Thursday said it welcomed the decision by the CBN to abandon its currency peg and adopt a flexible exchange rate policy, saying this was important to reduce fiscal and external imbalances.

The CBN had said on Wednesday that a market-driven foreign exchange market would commence on Monday, in the process abandoning the peg of N197 to the dollar that it had supported for 16 months.

Experts, who spoke to our correspondent on Wednesday, lauded the CBN for its courage to implement the market-determined exchange rate policy, saying it would bring down prices and eliminate market distortions.

Traders said on Thursday that the naira would likely fall next week as the country switches to a flexible and market-driven exchange rate policy.

Analysts also said that the naira might slide to a record low when the new open-market foreign currency trading commenced on Monday.

“We are expecting an initial wide depreciation of the naira at the official window, but the rate could stabilise at around the present black market rate of 370, depending on how much dollars the central bank will be willing to push into the market,” a senior trader told Reuters.

However, the CBN has said it is “reasonably optimistic” the naira will settle at around 250 to the US dollar, according to Reuters.

While forecasting that that naira will initially weaken against the greenback following a flotation on Monday, the CBN Governor, Godwin Emefiele, said the local currency would gain significantly over time.

Quoting a letter to President Muhammadu Buhari by the CBN governor was said to have noted that the naira would settle around 250 against the greenback.

“I must assure Your Excellency that we are indeed reasonably optimistic that at some point, the rate will settle around 250 naira,” Emefiele was quoted to have written by News Agency of Nigeria.

The letter, which briefs Buhari on the foreign exchange plan, says it could take three to four weeks to clear a $4bn backlog of foreign exchange demand.

Meanwhile, currency dealers and bank chiefs will meet CBN officials today (Friday) to discuss trading under the new interbank foreign exchange regime, according to a treasury source.

Members of the Financial Market Dealers Association met on Thursday to evaluate the new policy and determine how trading would work, the treasury source told Reuters.

IMF spokesman, Gerry Rice, told a weekly news briefing that the Fund wanted to see how effectively the naira exchange market would function once the new float system was put into effect on Monday.

“I think the announcement yesterday (Wednesday) to revise the guidelines for the operation of the Nigerian interbank foreign exchange market is an important and welcome step,” Rice told reporters, adding, “It will provide greater flexibility in that market, the foreign exchange market.”

http://www.punchng.com/forex-policy-imf-lauds-cbn-naira-appreciates/

May the Nigeria continue to get better.

Very soon in this country we would start to commend the key players in the different sectors. Everyone must show competence. No more God bless Buhari, Buhari has don this or that. Let these ministers and governors take up the challenge. Because the overall boss has no educational qualification.


FYI Buhari didn't even pass any of the officers training. He was manipulated up the ranks as typical of the northern oligarchs, if you doubt me why is Buhari the only General without those abbreviated course suffixes and titles after his name.

Make una sit down make pant dey wear you. I am not judging him based on certification, but I believe the Constitution understands the necessity of education

we have dance to d tune of imf, why wont them applaud it,

All i want is for the Naira to appreciate, my business de suffer from high cost and lack of Forex to import necessary equipments and consumables.

houstonia:
Very soon in this country we would start to commend the key players in the different sectors. Everyone must show competence. No more God bless Buhari, Buhari has don this or that. Let these ministers and governors take up the challenge

i dont know where u ipod came from, when things were bad, u blame pmb, it was dis same Godwin with phd that cause d own problem, but u flat head ipod insult pmb for cbn failure, God bless pmb for bearing all d insult cause by cbn

If you're expecting the new open market policy to push up the naira against the dollar ,then you are on a long thing,the multinational corporations responsible for the rise wouldn't want to stop making their profit hence they'll device a way to induce scarcity

Whagt happened was just a paaanic reaction to wednesday announcement. The pprice will start going up by wednesday

AKAKAK:
Oyetunji Abioye

The local currency gained N12, rising from 367 to 355 against the United States dollar at the parallel market on Thursday, a day after the Central Bank of Nigeria released the much-awaited foreign exchange market framework.

Forex dealers and analysts said the naira-dollar exchange rate, which closed flat at 367 on Wednesday, started reacting to the new policy following a rise in the supply of the greenback at the parallel market on Thursday.

The International Monetary Fund on Thursday said it welcomed the decision by the CBN to abandon its currency peg and adopt a flexible exchange rate policy, saying this was important to reduce fiscal and external imbalances.

The CBN had said on Wednesday that a market-driven foreign exchange market would commence on Monday, in the process abandoning the peg of N197 to the dollar that it had supported for 16 months.

Experts, who spoke to our correspondent on Wednesday, lauded the CBN for its courage to implement the market-determined exchange rate policy, saying it would bring down prices and eliminate market distortions.

Traders said on Thursday that the naira would likely fall next week as the country switches to a flexible and market-driven exchange rate policy.

Analysts also said that the naira might slide to a record low when the new open-market foreign currency trading commenced on Monday.

“We are expecting an initial wide depreciation of the naira at the official window, but the rate could stabilise at around the present black market rate of 370, depending on how much dollars the central bank will be willing to push into the market,” a senior trader told Reuters.

However, the CBN has said it is “reasonably optimistic” the naira will settle at around 250 to the US dollar, according to Reuters.

While forecasting that that naira will initially weaken against the greenback following a flotation on Monday, the CBN Governor, Godwin Emefiele, said the local currency would gain significantly over time.

Quoting a letter to President Muhammadu Buhari by the CBN governor was said to have noted that the naira would settle around 250 against the greenback.

“I must assure Your Excellency that we are indeed reasonably optimistic that at some point, the rate will settle around 250 naira,” Emefiele was quoted to have written by News Agency of Nigeria.

The letter, which briefs Buhari on the foreign exchange plan, says it could take three to four weeks to clear a $4bn backlog of foreign exchange demand.

Meanwhile, currency dealers and bank chiefs will meet CBN officials today (Friday) to discuss trading under the new interbank foreign exchange regime, according to a treasury source.

Members of the Financial Market Dealers Association met on Thursday to evaluate the new policy and determine how trading would work, the treasury source told Reuters.

IMF spokesman, Gerry Rice, told a weekly news briefing that the Fund wanted to see how effectively the naira exchange market would function once the new float system was put into effect on Monday.

“I think the announcement yesterday (Wednesday) to revise the guidelines for the operation of the Nigerian interbank foreign exchange market is an important and welcome step,” Rice told reporters, adding, “It will provide greater flexibility in that market, the foreign exchange market.”

http://www.punchng.com/forex-policy-imf-lauds-cbn-naira-appreciates/

Let's stop applauding the Government like they did something extraordinary. They should have done this last year and they are doing it quite late in the day. The naira should have been allowed to float 9 months ago. Besides they had no option than to do this. CBN does not have the dollars to support 197.

Applauding the government is like Applauding Jonathan for handing over. The CBN had no choice please. We have few dollars.

Simple truth...the naira is dead

experience does not have to be the best teacher

you should learn from the mistake of others

when buhari was told by people who had ssce certificate, masters n PhD,him dey do like say know everything

him eyes don neat


this is what we get for voting in a man who presented Nepa bill as certificate n hired 15 SAN to defend him when he was asked to bring it

t

When things go bad, Baba gets the blame, when things turn out for the better, anyone but Baba gets the credit.

Well, what can we say- it is a fundamental human right for people to be excessively idiotic.

Nice

Still anticipating how it pans out in some few hours, policy looks good on paper tho
I'm very optimistic

Naira will most likely appreciate, if not immediately, then with time. The policy will encourage capital inflow and increase forex liquidity in the market. Naira could drop to as low as 280-300 in a few months.

I just need the exchange rate to stay around $1 = N370 for one more week, before the naira begins to appreciate. I get hot deal wey I want take care of this week

[size=18pt] lol...the dollars will rise to 400 on monday follow by a continous rise for 3 weeks whike cbn clears the debt at that high rate but after that,the dollars will collapse but still settle at the rate of 420 naira where it will remain for at least 1yr

[/size]

the real change is about to happen......jah bless bubuhari

Everybody must work to attain a better Nigeria

The president must appoint the right people

the right people must be ready to work

Fashola is working

Emefiele is working

Buratai is working

Arase is working

Amina is working

Kachukwu is working

the rest senators continue meandering around oo, especially you, Rotimi, be doing like you don't have blood

Nigerians start working, 50people cannot back you people to the promise land

you have to use your own legs too, they can only clear the way for you

NB: If you want Yams in BULK i.e multiples of 100 tubers at the best wholesale price just buzz me

umarmash2@gmail.com

I am also working too as you can see, putting food on people's table

Mylove55:
i dont know where u ipod came from, when things were bad, u blame pmb, it was dis same Godwin with phd that cause d own problem, but u flat head ipod insult pmb for cbn failure, God bless pmb for bearing all d insult cause by cbn

It's too early to bash anybody abeg.. He blame Buhari wahala.. He praise am wahala..

MAKE DOLLAR NO APPRECIATE O

cool

YoursGEJ:
I just need the exchange rate to stay around $1 = N370 for one more week, before the naira begins to appreciate. I get hot deal wey I want take care of this week

See as you selfish reach. What about those wey get such hot deals to seal in one year's time??

themosthigh:
[size=18pt] lol...the dollars will rise to 400 on monday follow by a continous rise for 3 weeks whike cbn clears the debt at that high rate but after that,the dollars will collapse but still settle at the rate of 420 naira where it will remain for at least 1yr
[/size]

You must truly be the most high to be able to say what will happen and not happen

To me....you are just saying rubbish.

Optimistic that it Naira would stabilize at 250 to a dollar?
That, to me, isn't cheery enough.
I'll only be happy when naira gets to be 150 to a dollar. That's the exchange rate I've always had in my subconsciousness!

9jii:
May the Nigeria continue to get better.

Big AMEN to that

If naira return to 220,i won't thank pmb policy because he met it at that rate when he came to power. Until it is exchange for #1/$1,he remains a scam

imperialist

IMF?
Nyc policy by CBN really

IMF should leave us alone, why are they monitoring like we are their financial lab rats. We want investors not commentators.

AKAKAK:
Oyetunji Abioye

The local currency gained N12, rising from 367 to 355 against the United States dollar at the parallel market on Thursday, a day after the Central Bank of Nigeria released the much-awaited foreign exchange market framework.

Forex dealers and analysts said the naira-dollar exchange rate, which closed flat at 367 on Wednesday, started reacting to the new policy following a rise in the supply of the greenback at the parallel market on Thursday.

The International Monetary Fund on Thursday said it welcomed the decision by the CBN to abandon its currency peg and adopt a flexible exchange rate policy, saying this was important to reduce fiscal and external imbalances.

The CBN had said on Wednesday that a market-driven foreign exchange market would commence on Monday, in the process abandoning the peg of N197 to the dollar that it had supported for 16 months.

Experts, who spoke to our correspondent on Wednesday, lauded the CBN for its courage to implement the market-determined exchange rate policy, saying it would bring down prices and eliminate market distortions.

Traders said on Thursday that the naira would likely fall next week as the country switches to a flexible and market-driven exchange rate policy.

Analysts also said that the naira might slide to a record low when the new open-market foreign currency trading commenced on Monday.

“We are expecting an initial wide depreciation of the naira at the official window, but the rate could stabilise at around the present black market rate of 370, depending on how much dollars the central bank will be willing to push into the market,” a senior trader told Reuters.

However, the CBN has said it is “reasonably optimistic” the naira will settle at around 250 to the US dollar, according to Reuters.

While forecasting that that naira will initially weaken against the greenback following a flotation on Monday, the CBN Governor, Godwin Emefiele, said the local currency would gain significantly over time.

Quoting a letter to President Muhammadu Buhari by the CBN governor was said to have noted that the naira would settle around 250 against the greenback.

“I must assure Your Excellency that we are indeed reasonably optimistic that at some point, the rate will settle around 250 naira,” Emefiele was quoted to have written by News Agency of Nigeria.

The letter, which briefs Buhari on the foreign exchange plan, says it could take three to four weeks to clear a $4bn backlog of foreign exchange demand.

Meanwhile, currency dealers and bank chiefs will meet CBN officials today (Friday) to discuss trading under the new interbank foreign exchange regime, according to a treasury source.

Members of the Financial Market Dealers Association met on Thursday to evaluate the new policy and determine how trading would work, the treasury source told Reuters.

IMF spokesman, Gerry Rice, told a weekly news briefing that the Fund wanted to see how effectively the naira exchange market would function once the new float system was put into effect on Monday.

“I think the announcement yesterday (Wednesday) to revise the guidelines for the operation of the Nigerian interbank foreign exchange market is an important and welcome step,” Rice told reporters, adding, “It will provide greater flexibility in that market, the foreign exchange market.”

http://www.punchng.com/forex-policy-imf-lauds-cbn-naira-appreciates/

while commending CBN for this new open market policy,I also. want to remind them that for the naira to appreciate better there is need for government to enact the necessary policy that will help us to diversify our economy,protect indigenous company,so that we can produce more and import less......thereby the naira will gain strenght