Naira Value Declines as Banks Release Update on Rebates
Nigerian naira crashed to N464 versus the United States (US) dollar at the Investors’ and Exporters’ foreign exchange (FX) window on Monday as deposit money banks released fresh updates on rebate schemes seeking to keep the supply side strong.
The means decrease of 0.36 per cent in the value of the local currency when compared to the N462.33 it exchanged at the close of business on May 12.
According to FX market data tracked, the open indicative exchange rate closed at N463 .50 to the dollar on Monday. Meanwhile, a spot exchange rate of N467 was used for trading within the day before it settled at N464.
The record showed that Nigerian local currency sold for as low as N460 to the US dollar within the day’s trading. Overall, FX market data indicated that a total turnover of 55.10 million US dollars was traded at the official Investors’ and Exporters’ window.
The latest exchange rate suggests that the market faced much more demand pressures above the level seen in the second quarter. However, some analysts differ on the rate movement noting that the apex bank allowed some moderation to spot fx rate at mid-week secondary market intervention auction sales conducted last week.
Elsewhere, deposit money bank told customers that further to the CBN circular dated Feb 25 2022 and the outcome of deliberations at the just concluded third edition of RT200 Non-oil export bi-annual summit that export products in their raw form will be eligible for rebates.
Local lenders said there will be a rebate amount of N25 for every US dollar repatriated and sold at investors’ and exporters’ FX window for third-party use.
Also, the apex bank will give a rebate amount of N15 for every US dollar repatriated and sold on the Investors, and exporters’ FX market for receivers’ own use, adding that the effective date for implementation of the revised guideline is April 1.
In a similar development, parallel market players priced rates higher at ₦759 to US dollar amidst FX crisis.
Data from CBN shows external reserve was last reported at $35.22 billion, while Oil prices edged lower on demand fears. Brent and Bonny closed at $74.2 and $74/barrel. Naira Value Declines as Banks Release Update on Rebates