The new foreign exchange policy introduced by the Central Bank of Nigeria strengthens the Naira on the parallel market on Wednesday.

The local currency which traded N512 to a Dollar on Tuesday, gained N11 to close at N501 against the US dollar, and stronger than N520 it traded on Monday.

Traders also noted that the buy rate of the greenback improved below N490 to the dollar as currency hoarders who had held on to the dollar for several weeks rushed to sell off the currency following the renewed confidence in the CBN’s ability to meet forex demand.

Also, global ratings agency, Fitch Ratings said on Wednesday that the new forex policy announced by the CBN would ease forex scarcity and banks’ pressure.

According to the statement released by Fitch Ratings, the most important part of the CBN’s announcement was the normalisation of the interbank market.

The intention of the CBN to clear forex backlog of overdue foreign currency obligations owe by banks to international creditors, and the fact that the apex bank will no longer have a say on how banks on-lend the foreign currency they access from it, will strengthen banks and allow them to focus on what really matter.

The CBN had on Monday removed the preferential treatment for certain sectors of the economy, explaining that although providing forex for the manufacturing sector remain a priority, banks can now lend foreign currency they procure from it as they deem fit.

The apex bank also reaffirmed its intention to increase forex supplies at the interbank market and reduce banks’ waiting time for delivery of foreign currency to 60 days from 180 days via its forward sales contracts.

“This should help banks make more timely payments to creditors, speeding up the flow of currency to importers and helping the economy.

“The CBN’s initiatives are an important boost for banks as access to foreign currency liquidity is tight and banks have struggled to meet their foreign currency obligations.

“Nigeria is highly dependent on imports and Nigerian banks have long provided trade finance facilities to importers.

“Currency scarcity and exchange rate weakness have made it harder for importers reliant on naira-denominated cash flows to service US dollar-denominated trade finance lines, forcing some banks to restructure their obligations with international correspondent banks last year.

“Correspondent creditor banks agreed to maturity extensions and were duly compensated for this,” Fitch explained.

http://investorsking.com/naira-improves-parallel-market-sells-n501/

Seems at last we are seeing the light at the end of the tunnel

Not bad, but #500+ isn't just good at all.

So we are now celebrating nonsensical nonsense & mediocrity

BeeBeeOoh:
So we are now celebrating nonsensical nonsense & mediocrity

Lol.... Where is the celebration??

You are just afraid that things are about to start getting better.

All is well that ends well.

I hope the Bankers and BDCs will not sabotage this improvements... Na dem hand the thing dey

Personally, I think the Min Fin, Gov CBN and others just wanted to build the reserves to $30 billion and then start selling dollars. This new policies of meeting FOREX orders comes just after getting to that milestone

i wan ask,abeg shey na like this we go dey dey?Apc gallantly condemned #216 to a dollar during campaign.... now they've helped to triple d exchange rate,so what that Bleep are we celebrating?

Help us tell your hero and his fellow thieves to release all the dollars stored in their wardrobes and those buried, i just pray the united states change their currency and thrash away the old notes... i bet you dollars will exchange for less than 100 naira in black market

McAustin92:
i wan ask,abeg shey na like this we go dey dey?Apc gallantly condemned #216 to a dollar during campaign.... now they've helped to triple d exchange rate,so what that Bleep are we celebrating?

Naira gain 11 and will loss 110 soon, Nigerians are good at sabotaging

As much as I hate this govt, I still hope this is a turning point for the naira.

You call this an improvement?


Where is GEJ?
We neeed our 150/170 per dollar back.

For how many days. It will go to 550.

Wrong approach

Idiots, fools n goats will come n say buhari is working nah!

Lifestone:
Seems at last we are seeing the light at the end of the tunnel

ıs dat one ımprovement?bunch of medıocres...

I hope this is not another hopeless hope from CBN.

A truly representative rate should not be more than 300/350 naira to a dollar, considering all the negative occurrences.

Naija!

BeeBeeOoh:
So we are now celebrating nonsensical nonsense & mediocrity

Lol

Where are they hiding those banners.

NNigerians have very short memory.

No wonder politicians just know how to gamble with them.

God please direct our leaders on the right paths.


God please also help Nigeria and deliver Nigerians!


With the right policy direction, I am optimistic we would regain our lost glory.

Hnmmm

ugochukwufrenzy:
ıs dat one ımprovement?

From 520 to 501 in a week is a good sign.

Things getting better should be like yesterday, not until most Nigerians perish.

genearts:


Lol.... Where is the celebration??

You are just afraid that things are about to start getting better.

Bad news for G. guys

kai osinbade is working fa

hmm

efilefun:
Help us tell your hero and his fellow thieves to release all the dollars stored in their wardrobes and those buried, i just pray the united states change their currency and thrash away the old notes... i bet you dollars will exchange for less than 100 naira in black market

Do you know how much was stolen during Abacha's reign? I bet, you will amazed if Buhari decides to probe obasanjo's government. But yet dollar remained at 150-220$ in 16 years. Then APC Flushed the naira down the drain with unprofessional policies.

when we see the truth, let's say it. Yes I agree that this government is fighting corruption even though it's one sided. But they should try and help grow the economy by appointing professional hands. e.g what does a lawyer has to do with power generation.

it's well sha