Aboki News

Expert urges CBN to reduce MPR – The Guardian

FEBRUARY 01, 2017

Dr Samuel Nzekwe, finance expert, has urged the Central Bank of Nigeria to reduce the Monetary Policy Rate currently at 13 per cent in order to boost the economy.

Nzekwe, former President, Association of National Accountants of Nigeria (ANAN), told the News Agency of Nigeria (NAN) on Sunday in Ota, Ogun, that the higher MPR had eroded the purchasing power of most Nigerians.

NAN reports that the Monetary Policy Committee of CBN had at its two-day meeting in Abuja on Tuesday retained the MPR at 13 per cent.

According to him, the interest rate charged by the commercial banks was too high, making businesses difficult to do in the country.

“The Federal Government needs to create enabling environment by providing lower interest rate and address critical infrastructure deficiency for industries to thrive’’, the ex-ANAN boss said.

According to him, Nigeria is experiencing cost push inflation, the result of higher cost of production of goods and services.

Nzekwe said devaluation of the nation’s currency was a major factor that affected the high cost of production.

“Goods and services are available but people have no money to buy them because the recession made people to be worse off’’, he said.

He, therefore, advised the CBN to reduce interest rate so that investors could access cheap loans, reduced cost of production and create more employment.

This, he said, would boost the Gross Domestic Product and eradicate poverty level in the country.

FEBRUARY 2017 FOREIGN RESERVES IN USD - AbokiFX CHART

FEBRUARY 18, 2017

BY ABOKIFX RESEARCH

  • FOREIGN RESERVE RECOVERY NOT YET IMPACTING THE EXCHANGE RATE OF THE NAIRA AS NAIRA SPIRALS OUT OF CONTROL. 
  • ABOKIFX RESEARCH TEAM BELIEVES THERE IS A POSSIBLITY THE CENTRAL BANK COULD DEFEND THE NAIRA ONCE A FOREIGN RESERVE THRESHOLD IS REACHED.
  • CRUDE OIL PRODUCTION VOLUME IS AT 2 MILLION BARRELS A DAY WITH OIL PRICE STEADILY ABOVE $50 A BARREL. THIS EXPLAINS THE FAST RECOVERY OF THE RESERVE.
  • abokiFX RESEARCH TEAM WILL WATCH FOR EARLY SIGNS OF CBN INTERVENTION IN THE FX MARKET AS THE CHART SHOWS WE COULD BE HEADING BACK IN THAT DIRECTION. HOW SOON THOUGH, WOULD DEPEND ON A RESERVE THRESHOLD GOOD ENOUGH TO TRIGGER AN INTERVENTION.. 

 

DOWNLOAD APPS AT HTTP://ABOKIFX.COM ABOKIFX.COM 

PANIC OVERWHELMS THE PARALLEL MARKET AS TRADERS BEAR HEAVY LOSSES - abokiFX

FEBRUARY 24, 2017

Parallel market traders are turning customers away as they refuse to buy any foreign currency.

Those willing to buy off customers are offering low rates for the dollar and refusing to take on any large volume.

Traders are also reluctant to sell at low prices but those that have panicked are willing to offload low volumes as well at $460.

abokiFX  field agents believe that customers who usually source forex from the parallel market are now heading to the banks to take advantage of the reduced rates from the CBN.

abokiFX field agents have confirmed that RATES ARE UNSTABLE AT THE MOMENT AND ADVICE THAT TRADES SHOULD BE DONE OUT OF NECESSITY RATHER THAN PANIC.

HIGH TRAFFIC BUT LOW CURRENCY VOLUMES - abokiFX Research

FEBRUARY 24, 2017

TODAY'S MARKET OBSERVATION

abokiFX Research   24/02/2017

DOWNLOAD APPS AT https://www.abokifx.com/ ABOKIFX.COM

  • Market in chaos as rate fluctuation confuses traders.
  • A lot of customers trying to sell but traders not buying at high rates anymore.
  • Traders and customers weeping from loss in exchange rate.
  • Traders are not able to sell existing stock at low rates as the loss would be catastophic.
  • Traders willing to buy are buying limited volumes at discounted rates.
  • Volume traded per individual is low compared to standard trading days.
  • Customers trooping in to sell their stock are not impressed witht the rates. While some deal, others do not. The observed deals are light.
  • The weekend could not have come at a better time for some traders as they try to grasp the reality of the CBN's New FX Policy.

Market observations compiled by abokiFX Research Team.

DOWNLOAD APPS AT https://www.abokifx.com/ ABOKIFX.COM

NAIRA WARS: THE CENTRAL BANK STRIKES BACK - abokiFX

FEBRUARY 25, 2017

DOWNLOAD APPS AT https://www.abokifx.com/ ABOKIFX.COM

The Central Bank has found new muscle with the introduction of its new FX policy. The policy will see all banks receive a total of $20m weekly, to sell to the public at N375 /$1 thereby reducing the pressure on the parallel market.

CBN suffered the humiliation of not being able to respond to the dire demand for dollars in the country since late 2016 forcing the naira to spiral out of control.

DOWNLOAD APPS AT https://www.abokifx.com/ ABOKIFX.COM

CBN introduced IMTOs and empowered them to distribute $15,000 per week which was later slashed to $8,000 per week per BDC. AbokiFX field agents confirmed that the $8,000 dollars a week they receive barely last 60 minutes.

abokiFX observed that the Central Bank, who had been pushed to the wall since the start of 2017  decided to fight back aggressively on all fronts by using a combination of spots, forwards, price discounts and media announcements by selling $41m spot rates, $600m forwards contracts at rates below the parallel market and announcing a new FX policy.

DOWNLOAD APPS AT https://www.abokifx.com/ ABOKIFX.COM

abokiFX believes with a restored reserve approaching the $30bn threshold with further prospects of future growth, there is enough muscle to fight off any speculative demand in the market and ensure moderate liquidity is sustained on a weekly basis through multiple channels.

CBN has also called for back up from the banks to join the fight to strengthen the naira by instructing the banks to be located in BDC territories such as inside the airports, to provide liquidity penetration to customers. AbokiFX sees some conflict of interest occurring here initially but might be mitigated in the long run.

abokiFX research team will monitor closely what the impact of the new FX policy will have on the rates and liquidity volume in the peak seasons, as that would be the real test of the return of the Naira.

DOWNLOAD APPS AT https://www.abokifx.com/ ABOKIFX.COM

SEE HOW MUCH YOU GET IF YOU SELL

NGN
USD
GBP
EUR
Real Time Analytics