CBN adds VFD, a UK based firm and eight (9) other companies to the list of Money Transfer Operators in Nigeria.
The apex bank has added Ten (10) more companies to the existing 47 licensed International Money Transfer Operators (IMTO) in Nigeria. This was disclosed by the bank in a CBN Circular titled ‘Updated list of International Money Transfer Operators in Nigeria as of April 01, 2021’ shared via its website.
Naira falls at NAFEX window as CBN moves to further boost diaspora remittances
Naira depreciated on Tuesday, at the Nigerian Autonomous Foreign Exchange (NAFEX) window, as the rate closed at N411.67 to a dollar. This represents a N1.67 drop when compared to the N410/$1 that was recorded on Monday, 26th April 2021.
Rising Oil Prices: The Double-Edged Sword for Nigeria
The resurgence in the price of crude oil bodes well for the Nigerian economy, as this will boost the country’s revenue needed for the implementation of the 2021 budget, improve crude oil receipts, and consequently bolster foreign exchange inflows.
NNPC Set to Deliver Zero FAAC Remittance in May as Subsidy Payment Bites Harder
The revenue drama that dominated the public space in the past weeks does not look like it will end anytime soon. This is because the Nigerian National Petroleum Corporation (NNPC) has disclosed that its projected monthly remittance to the Federation Accounts Allocation Committee (FAAC) for May will be zero.
FGN Bonds
The FGN bond market continued to trade on a bearish note, as yields rose across the benchmark bond curve for another consecutive trading session. We noted sellers mostly at the short to mid-dated papers, as tight system liquidity continues to squeeze banks out of holding positions.
Treasury Bills
The treasury bills space traded with continued selling pressure for another consecutive session as local players looked to offload positions to cover their funding positions amidst sustained tight system liquidity levels. Supply remained focused on short-dated papers, as the CBN Special Bill (31-May-2021 maturity) was offered at 6.00% as local banks looked to raise cash rather than continue overnight funding at double-digit rates.
Money Markets
Interest rates climbed higher for another consecutive session, despite OMO maturities of N40.00Bn, as local banks continued to camp at the CBN Lending window to fund their positions. System liquidity opened at c.N313Bn negative, the tightest levels seen since way back in September 2019.
FX Market
The Naira had a relatively quiet trading session at both the official and parallel markets. At the Investors and Exporters Forex (IEFX) space, we saw a slight uptick in traded volumes which increased by 2.00% D/D (c.$48.42mio traded). The Naira appreciated by N1.67k to close at N411.67/1$, as bids ranged between N401.10 and N436.55 to the dollar.
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