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NSE index plummets further by 0.25%

Skytrend Consulting LTD
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7
NSE index plummets further by 0.25%

NSE index plummets further by 0.25%

The All-Share Index (ASI) of the equity sector of the Nigerian Stock Exchange (NSE) plummeted further on Friday December 4, 2020 by 0.25%.

This, according to analysts may be due to negative market sentiments.

At the closed of transactions, ASI shed 87.88 absolute points, representing a decline of 0.25 per cent, to close at 34,968.94 points while the market capitalisation value also declined by N46 billion to close at N18.277 trillion.

The downtrend was driven by price depreciation in medium and large capitalised stocks – Guaranty Trust Bank, Flour Mills of Nigeria, Cadbury Nigeria, United Bank for Africa (UBA) and Zenith Bank.

Market sentiment, as measured by market breadth, was negative as 25 stocks declined relative to 13 gainers

The total volume of trades decreased by 21.5% to 289.394 million units, valued at N7.348 billion and exchanged in 4,878 deals.




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Oil prices climb towards $50, highest in 9 months

Femi Adeoya
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1
Oil prices climb towards $50, highest in 9 months

Oil prices climb towards $50, highest in 9 months

Oil prices climbed their highest in 9 months, Friday evening, a day after the Organization of the Petroleum Exporting Countries plus (OPEC+) sealed a compromise deal over its oil production policy early next year.

The cartel agreed to ease their production output cuts next year more gradually than previously planned which is aimed at giving a fragile market more time to absorb the extra supply.

Brent crude, the international benchmark, spiked 1.13 percent to almost $50 per barrel, peaking at $49.25 a barrel – the highest since March 5, 2020, when it traded at N49.99, while WTI crude was up by 1.03 percent at $46.06.

This is good news for Nigeria as crude oil accounts for half of the government’s income and about 90 percent of Nigeria’s foreign exchange earnings.

The nation’s economy has continued to battle foreign exchange scarcity following plummeting crude oil prices in the international market caused by the COVID-19 pandemic.

Organization of the Petroleum Exporting Countries plus (OPEC+), a group of non-OPEC countries which export crude oil, yesterday agreed to ease oil-output cuts next year after almost a week of fraught negotiations that exposed a new rift at the heart of the cartel.

The group agreed to add 500,000 barrels a day of production to the market in January, and ministers will then hold monthly consultations to decide on the next steps.

That’s a much shorter time frame than OPEC+ usually operates under, and before this week the expectation had been that the group would hold off putting more oil onto the fragile market for another three months.

Although the OPEC+ group failed the deliver the most widely expected outcome—a three-month extension of the current level of cuts, the fact that the alliance managed to exit this week’s meeting whole and with some sort of a decision reassured the market that neither the alliance nor the cartel would be breaking, at least for the next month or so.




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READ ALSO! Naira free fall: Parallel market not determined by demand, supply forces — CBN Governor

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Naira plunge: Speculators will suffer huge loss, Operators warn

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Naira falls again, hovering around N475/$ despite CBN new policy

Femi Adeoya
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3
Naira falls again, hovering around N475/$ despite CBN new policy

Naira falls again, hovering around N475/$ despite CBN new policy

The Nigeria’s Naira is hovering between N475 to N480 compared to the United States Dollar on Friday December 4, 2020, after losing N5 in value in 48 hours, following the initial gain.

The currency, which had closed at a four-year low of N510 on Monday, had firmed up and gained N20 on Tuesday December 1, 2020, exchanging for N490/$ after the CBN relaxed the policy on foreign remittances and domiciliary accounts.

On Wednesday, the naira gained a further N20 and traded at N470/4 in the parallel market.

The Central Bank of Nigeria (CBN) said on Monday that beneficiaries of diaspora remittances through the international monetary transfer operators (IMTO) shall now have such inflows in foreign currency (US Dollar) through the designated bank of their choice.

The apex bank in a statement signed by O.S. Nnaji, director of trade & exchange of CBN, said recipients of such remittances may have the option of receiving these funds in foreign currency cash or into their domiciliary account.

The CBN statement reads, “these changes are necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of Diaspora remittances into Nigeria”.

The Naira has been suffering intense depreciation and steady decline against the dollar at the black market in recent times due to dollar scarcity and speculative purchases.

Operators blame illegal activities by forex speculators for the sharp depreciation. Some traders also attribute the naira decline in value to increased demand due to speculation.

SKYTREND CONSULTING recalls that the forex market has been under intense pressure since March 2020 following a sharp drop in oil pricess as a result of the Covid 19 pandemic.




Call 0803 239 3958 for free financial consulting advice for your businesses. Attend our bi-monthly Peachtree Sage 50 accounting and reporting seminar.
Reach us or send your financial updates and articles to info@skytrendconsulting.com.

READ ALSO! Naira free fall: Parallel market not determined by demand, supply forces — CBN Governor

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Naira plunge: Speculators will suffer huge loss, Operators warn

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

Economy in crisis: Arik Air fires 300 workers

Femi Adeoya
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5
Economy in crisis: Arik Air fires 300 workers

Economy in crisis: Arik Air fires 300 workers

The management of Arik Air has fired 300 members of staff with immediate effect.

This was announced in a statement by the airline on Friday.

It blamed the sacking on the impact of COVID-19 pandemic.

The press statement was titled, “Arik Air management declares 300 staff redundant”.

The company explained that a redundancy package would be provided for the affected workers with the help of the aviation unions.

See Statement from Arik Air:

“Arising from the devastating impact of the COVID-19 pandemic, leading to the constrained ability of the airline to complete heavy maintenance activities and return its planes to operations, stunted revenues against increasing operational costs, the management of Arik Air (In Receivership) has declared 300 staff members redundant to its current level of operations.

“The leadership of the impacted unions has been contacted to negotiate a redundancy package for the affected staff.”




Call 0803 239 3958 for free financial consulting advice for your businesses. Attend our bi-monthly Peachtree Sage 50 accounting and reporting seminar.
Reach us or send your financial updates and articles to info@skytrendconsulting.com.

READ ALSO! Naira free fall: Parallel market not determined by demand, supply forces — CBN Governor

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Naira plunge: Speculators will suffer huge loss, Operators warn

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

Nigeria targets transport operators in its survival fund for small businesses

Femi Adeoya
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1
Nigeria targets transport operators in its survival fund for small businesses

Nigeria targets transport operators in its survival fund for small businesses

The Federal Government has said its Micro, Small and Medium Enterprise survival fund for the transport sector will benefit 4,500 transport businesses in each state across the federation.

The Managing Director, Bank of Industry, Kayode Pitan, said this at the launch of the transport sector track of the scheme in Lagos on Monday.

He said the transport fund was available to transporters driving buses, taxis, tricycles, motorcycles or in any other kind of transport business.

“This fund is for people whose transport businesses have been affected by the pandemic and the Federal Government would be disbursing N30,000 grant to 330,000 self employed people in the country,” he said.

He said the Federal Government had plans to support over 330,000 self-employed people that had been affected by the pandemic with this scheme.

“We will be working with the unions and we are also using this medium to encourage their members to apply for the fund as it would be on first come, first serve basis,” he said.

He said to qualify for the fund, transporters must be Nigerians with a verifiable Bank Verification Number; must be registered with a transport association, and self-employed in the transport business.




Call 0803 239 3958 for free financial consulting advice for your businesses. Attend our bi-monthly Peachtree Sage 50 accounting and reporting seminar.
Reach us or send your financial updates and articles to info@skytrendconsulting.com.

READ ALSO! Naira free fall: Parallel market not determined by demand, supply forces — CBN Governor

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Naira plunge: Speculators will suffer huge loss, Operators warn

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

Economy in crisis: We target $2bn diaspora remittances monthly — CBN governor

Femi Adeoya
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0
Economy in crisis: We target $2bn diaspora remittances monthly — CBN governor

Economy in crisis: We target $2bn diaspora remittances monthly — CBN governor

The Governor of the Central Bank of Nigeria, Godwin Emefiele, on Thursday said the target of the CBN was for the country to attract about $2bn monthly as remittances from citizens in diaspora.

Emefiele’s position is coming after the apex bank introduced its new Diaspora Foreign Exchange Remittances Policy.

The CBN boss told journalists during a press briefing on the new policy in Abuja that countries that had similar demographic features with Nigeria, such as Pakistan, often received about $2bn monthly from their citizens in diaspora.

His words:

“I’m aware from the data available that, for instance, Pakistan, even in the midst of COVID-19 receives $2bn monthly from flows from Pakistani in diaspora.

“If Nigeria is able to receive even if it is just $1bn monthly or moving close to $2bn monthly, I’m so certain you all know what will happen to the exchange rate in Nigeria.”

Emefiele noted that should the $2bn monthly target be met, Deposit Money Banks would after some time have no need of calling the CBN to fund their commercial operations.

“So that is why we are saying that we want to aggressively take on this and see how this will help our economy,” the governor stated.

He declared to Nigerians both at home and in the diaspora that the policy of recipients receiving their monies from abroad would kick off on December 4, 2020.

He noted that in a bid to block any loophole to manipulate the policy, the CBN had ordered all DMBs to close all their Naira General Ledger through which the naira remittances were hitherto being carried out.

He said the bank took the decision following resistance from international money transfer operators over its new decision on diaspora remittances.

Emefiele said, “The CBN observed some pushback by some of the IMTOs who were bent on continuing their nefarious activities of undermining our policy by attempting to resist the new policies.”




Call 0803 239 3958 for free financial consulting advice for your businesses. Attend our bi-monthly Peachtree Sage 50 accounting and reporting seminar.
Reach us or send your financial updates and articles to info@skytrendconsulting.com.

READ ALSO! Naira free fall: Parallel market not determined by demand, supply forces — CBN Governor

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Naira plunge: Speculators will suffer huge loss, Operators warn

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

New CBN policy: Naira gains N20 again, exchanges N470/$

Femi Adeoya
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1
New CBN policy: Naira gains N20 again, exchanges N470/$

New CBN policy: Naira gains N20 again, exchanges N470/$

The Nigeria’s Naira is gaining heavily in the parallel market following the Central Bank of Nigeria (CBN) amendments to the foreign exchange rule on diaspora remittances.

The nation’s currency exchanged at N470/$ on Wednesday December 2, 2020, gaining yet another N20 in 24 hour.

The currency, which had closed at a four-year low of N510 on Monday, had firmed up and gained N20 on Tuesday December 1, 2020 against the dollar as it exchanged for N490/$ after the CBN relaxed the policy on foreign remittances and domiciliary accounts.

On Monday, the CBN said beneficiaries of diaspora remittances through the international monetary transfer operators (IMTO) shall now have such inflows in foreign currency (US Dollar) through the designated bank of their choice.

The apex bank in a statement on Monday November 30, 2020, signed by O.S. Nnaji, director of trade & exchange of CBN, said recipients of such remittances may have the option of receiving these funds in foreign currency cash or into their domiciliary account.

The CBN statement reads, “these changes are necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of Diaspora remittances into Nigeria”.

“In addition, these changes would help finance a future stream of investment opportunities for Nigerians in the Diaspora, while also guaranteeing that recipients would receive a market reflective exchange rate for the market.”

The apex bank also noted that beneficiaries shall have unfettered access and utilisation to such foreign currency proceeds, either in cash and or in their domiciliary accounts.

Under the new guidelines, operators of export domiciliary accounts will continue to operate based on existing regulations which allow account holders use their funds for business operations only with any extra funds sold in the import and export window.

Also operators of ordinary domiciliary accounts where accounts are funded electronically or wire transfer would be allowed unfettered and unrestricted use of these funds for eligible transactions. And where accounts are funded by cash lodgments, existing regulation will continue to apply.

The CBN had on February 23, 2020, explained that only electronic fund transfers into Domiciliary accounts can also be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.




Call 0803 239 3958 for free financial consulting advice for your businesses. Attend our bi-monthly Peachtree Sage 50 accounting and reporting seminar.
Reach us or send your financial updates and articles to info@skytrendconsulting.com.

READ ALSO! Naira free fall: Parallel market not determined by demand, supply forces — CBN Governor

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Naira plunge: Speculators will suffer huge loss, Operators warn

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

Banks swim in excess cash to lend customers as CBN relaxes CRR

Femi Adeoya
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3
Banks swim in excess cash to lend customers as CBN relaxes CRR

Banks swim in excess cash to lend customers as CBN relaxes CRR

Commercial banks in Nigeria are now swimming in heavy load of cash to lend to customers as the Apex Bank has just relaxed its credit reserve ratio, CRR requirement which stipulates the minimum amount of cash the banks must deposit with it.

In a statement dated November, 30, the central bank’s Bello Hassan, director of banking supervision said, “the Central bank of Nigeria on November 30, 2020, approved the release of the excess above regulatory minimum cash reserve requirement of banks. This is part of measures to improve liquidity and support economic recovery through the increased extension of credit facilities to the real sector.”

This he said will be accomplished through the issuance of CBN special bills with the following features- “tenor of 90 days, subject to roll over at the instance of the CBN; zero coupons with an implied yield to be worked out by the CBN; the instrument will be traceable and will be discountable at the CBN window and finally, the instrument will qualify as liquid assets.”

It is the first time that the CBN has acknowledged it was holding cash beyond the CRR limit and this could be the most impactful action of the Apex bank yet as analysts have said it signals a shift from the dogged defence of the Naira which meant that the apex bank ruthlessly cleared away cash from the banking system to prevent the cash from chasing after scarce foreign exchange.

Two days ago, the CBN also amended the rules for receipt of diaspora remittances as part of its efforts to boost the foreign exchange market.

The Apex bank this will liberalize, simplify and improve the receipt and administration of diaspora remittances into Nigeria, beneficiaries of diaspora remittances through International Money Transfer Operators should henceforth, receive such inflows in foreign currency through the designated bank of their choice.




Call 0803 239 3958 for free financial consulting advice for your businesses. Attend our bi-monthly Peachtree Sage 50 accounting and reporting seminar.
Reach us or send your financial updates and articles to info@skytrendconsulting.com.

READ ALSO! Naira free fall: Parallel market not determined by demand, supply forces — CBN Governor

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Naira plunge: Speculators will suffer huge loss, Operators warn

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

New CBN Forex rule brings life back to Naira, exchanges N490/$

Femi Adeoya
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4
New CBN Forex rule brings life back to Naira, exchanges N490/$

New CBN Forex rule brings life back to Naira, exchanges N490/$

Following the Central Bank of Nigeria (CBN) amendments to the foreign exchange rule on diaspora remittances, life came back to the Naira as it exchanged at N490/$ on Tuesday December 1, 2020, gaining a whopping N20 in 24 hours.

The naira, which had closed at a four-year low of N510 on Monday, was able to bounce back, gaining 4 percent against the dollar.

The local currency is expected to firm further as over 5,000 Bureaux De Change (BDCs) are to receive dollar disbursement from the CBN today.

On Monday, the CBN said beneficiaries of diaspora remittances through the international monetary transfer operators (IMTO) shall now have such inflows in foreign currency (US Dollar) through the designated bank of their choice.

The apex bank in a statement on Monday, signed by O.S. Nnaji, director of trade & exchange of CBN, said recipients of such remittances may have the option of receiving these funds in foreign currency cash or into their domiciliary account.

The CBN statement reads, “these changes are necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of Diaspora remittances into Nigeria”.

“In addition, these changes would help finance a future stream of investment opportunities for Nigerians in the Diaspora, while also guaranteeing that recipients would receive a market reflective exchange rate for the market.”

The apex bank also noted that beneficiaries shall have unfettered access and utilisation to such foreign currency proceeds, either in cash and or in their domiciliary accounts.

The CBN had on February 23, 2020, explained that only electronic fund transfers into Domiciliary accounts can also be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.




Call 0803 239 3958 for free financial consulting advice for your businesses. Attend our bi-monthly Peachtree Sage 50 accounting and reporting seminar.
Reach us or send your financial updates and articles to info@skytrendconsulting.com.

READ ALSO! Naira free fall: Parallel market not determined by demand, supply forces — CBN Governor

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Naira plunge: Speculators will suffer huge loss, Operators warn

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

CBN battles forex market liquidity, amends diaspora remittance rule

Femi Adeoya
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1
CBN battles forex market liquidity, amends diaspora remittance rule

CBN battles forex market liquidity, amends diaspora remittance rule

The Central Bank of Nigeria says it had amended the rules for receipt of diaspora remittances as part of its efforts to boost the foreign exchange market.

It said this in a circular on entitled ‘Amendment to procedures for receipt of diaspora remittances,’ which was signed by Director, Trade and Exchange Department, Dr O. S. Nnaji.

The CBN said to liberalise, simplify and improve the receipt and administration of diaspora remittances into Nigeria, beneficiaries of diaspora remittances through International Money Transfer Operators should henceforth, receive such inflows in foreign currency through the designated bank of their choice.

It added that such recipients of remittances may have the option of receiving these funds in foreign currency cash or in their ordinary domiciliary account.

Part of the circular read, “These changes are necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of diaspora remittances in Nigeria.

“In addition, these changes would help finance streams of investment opportunities for Nigerians in diaspora, while also guaranteeing that recipients of remittances would receive a market-reflective exchange rate for their inflows.

“All authorised dealers and the general public should note that beneficiaries shall have unfettered access and utilisation to such foreign currency proceeds, either in cash and/or in their domiciliary accounts, in line with our circular TED/FEM/FPC/GEN/01/010.”

Meanwhile the naira closed on Monday November 30, 2020 at between N508 and N510/$
in the black market over persistent forex demand and speculative purchases.

Earlier in the day, the naira fell to N500 to the dollar after the Central Bank of Nigeria (CBN) adjusted the exchange rate by 3 percent across foreign exchange market segments.

This is according to SKYTREND CONSULTING prediction last week that the Naira will crash to N500 in exchange for the dollar early this week.

The Central Bank of Nigeria (CBN) has however amended its foreign exchange rule by announcing that beneficiaries of diaspora remittances through the international monetary transfer operators (IMTO) shall now have such inflows in foreign currency (US Dollar) through the designated bank of their choice.

The persistent depreciation in the value of the naira is due to an increase in demand for the dollar by the end-users amid a shortage of the greenback.




Call 0803 239 3958 for free financial consulting advice for your businesses. Attend our bi-monthly Peachtree Sage 50 accounting and reporting seminar.
Reach us or send your financial updates and articles to info@skytrendconsulting.com.

READ ALSO! Naira free fall: Parallel market not determined by demand, supply forces — CBN Governor

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Naira plunge: Speculators will suffer huge loss, Operators warn

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

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