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Naira tumbles to N595/$ at parallel market as FX demand surges

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The naira, on Thursday, depreciated further against the dollar at the parallel section of the foreign exchange market.

Bureaux De Change operators (BDCs), popularly known as ‘abokis’, who spoke to TheCable in Lagos, quoted the naira at N595 to the dollar at the street market.

The figure represents a depreciation of N6 or 1 per cent compared to the N589 it traded last week.

The street traders put the buying price of the dollar on Thursday at N590 and the selling price at N595, leaving N5 profit margin.

They attributed the decline in the value of the naira to increased demand for the greenback (dollar) mostly by importers.

A parallel market (street/black market) is characterised by noncompliant behaviour with an institutional set of rules.

The Central Bank of Nigeria (CBN) has often maintained that the parallel market is not the true reflection of the naira.

On the official market side, the local currency depreciated at the investors and exporters window (I&E window) on Wednesday, exchanging at N418.75 to the dollar — a 0.12 per cent depreciation from N418.25 traded on Tuesday.

The open indicative rate closed at N417.70 to the dollar on Wednesday.

An exchange rate of N444.00 to the dollar was the highest rate recorded within the day’s trading before it settled at N418.75.

The naira sold N410 to the dollar with a total of $115.78 million traded at the I&E window.

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  1. Noe Serafini

    May 17, 2022 8:12 am at 8:12 am

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The paper currency will soon be out of circulation, says CBN

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The Central Bank of Nigeria CBN has said that paper currency will soon be out of circulation, urging market men and women to sign into the e-Naira.

The Delta State Branch Controller of CBN, Mr Godwin Okafor, stated this on Friday at the popular Ogbogonogo market during the market sensitisation on e-Naira.

He urged traders to key into the central bank’s e-Naira policy.

He said, “We here at the market today to sensitise the market people on the use of e-Naira. It is fully backed by CBN unlike Bitcoin has no legal backing.”

The consultant of CBN on e-Naira, Dr. Aminu Bizi, said Delta was chosen as the second state to sensitize market women on e-Naira after Lagos.

“We are here to sensitise market men and women shop to shop on the use of e-Naira. CBN has gone behind ATM, POS, therefore, we are going to meet the Okada/tricycle union on this policy.

“Paper currency will soon be out of circulation because CBN spent money to print money and people abuse the currency in the market, spraying at the occasion, payment of Okada/tricycle and others and CBN is losing”.

He said the use of e-Naira was effective, charges free unlike ATM and POS and cannot be hacked by fraudsters.

In his remark, the Secretary to the State Government, Chief Patrick Ukah, applauded CBN for e-Naira initiative.

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Business

Netflix fires 150 workers amid low revenue margins

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Netflix, an American streaming service, says it laid off 150 staff members in the United States amid dwindling revenue margins.

The company said this in a statement on Tuesday.

Netflix said the layoff represents only two per cent of its total workforce force.

It added that the decision to sack its workers was basically due to the slow revenue growth and not based on performance.

“Our slowing revenue growth means we are also having to slow our cost growth as a company,” the statement reads.

“These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us wants to say goodbye to such great colleagues.”

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Business

Oil price hits $115 a barrel — highest in seven weeks

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Oil prices rose on Tuesday amid an ongoing push by the European Union for the Russian oil imports ban.

Brent crude climbed 1.04 per cent to $115.29 a barrel on Tuesday — the highest since March 28.

West Texas Intermediate (WTI) saw a corresponding leap of 0.36 per cent, trading at 114.6 a barrel.

On Monday, EU foreign ministers failed in their effort to pressure Hungary to sign up to a proposed embargo on Russian oil.

Jeffrey Halley, analyst at brokerage OANDA, said: “Oil prices have remained near multi-week highs this week, supported by surging gasoline and distillate prices in the U.S., and fears around an EU ban on Russian oil imports remaining in play”.

Meanwhile, Tina Teng, an analyst at CMC Markets, said: that “intensifying geopolitical tension” between the EU and Russia will further bolster prices, even as Sweden and Finland seek to join NATO.

High oil prices, among other underlying factors, continue to affect Nigeria’s deregulated oil market.

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