Naira Steadies as Banks Issue Update on FX Purchase

Naira Steadies as Banks Issue Update on FX Purchase

The Nigerian naira traded steadies at N446.67 to the United States dollar at the Investors’ and Exporters’ foreign exchange (FX) market as high inflation rate stokes additional market uncertainties.

Data from the FMDQ Exchange platform indicates that the exchange rate movement maintained the previous position while normalcy in the black market keeps the naira on gaining streaks.

The local currency did not change from its value on Tuesday while the open indicative rate closed at N443.88 to the dollar on Wednesday, according to traders’ notes.

Foreign exchange analysts told MarketForces Africa that the outlook is however unstable over widening currency inflation. It is noted that due to gain in the parallel market, gaps between official and unofficial rate appears to have collapsed further.

On Wednesday, an exchange rate of N447 to the dollar was the highest rate recorded within the day’s trading before it settled at N446.67, according to FX market reports reviewed. READ: Treasury Bills Yield Steadies as Naira Slides at Official FX Window

The naira sold for as low as 432 to the dollar within the day’s trading. Meanwhile, a total of 86.41 million dollars was traded in foreign exchange at the official Investors and Exporters window on Wednesday


Elsewhere, Nigerian banks have started informing customers about changes regarding FX requests.  In an email sent to customers, FirstBank said going forward, a minimum of 60 days is required in processing school fees, following the submission of Form A documents at the branch.

The Nigerian local lender added that this is subject to a maximum of $15,000 per semester, with a limit of 2 semesters per session.

“Application for Upkeep requires a minimum of 60 days for processing, subject to a maximum of $3,000 (or its equivalent in other currencies) per Semester (limited to 2 semesters per session)”, FirstBank told customers.

The Tier-1 lender told customers that evidence of payment of school fees for the current session will be required if fees were not paid through FirstBank in what appears like the Central Bank of Nigeria’s requirement for controlling FX access.

The bank asked customers to ensure that all personal/business travelling allowance (PTA/BTA) applications along with the approved Form A are submitted, exactly 14 days before the proposed travel date.

It said sales are limited to two quarters a year.

“Remember, Applications for Form A which covers School fees, Student Upkeep, and PTA/BTA must be processed on the Central Bank of Nigeria’s Trade Monitoring System (TRMS) Platform. This must be in line with Regulatory Requirements”, the bank explained.

FirstBank however added that requests will be processed and disbursed subject to the availability of FX. # Naira Steadies as Banks Issue Update on FX Purchase

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