Naira is making gradual comeback after Nigeria raised $4 billion through a Eurobond sale, which is $1 billion more than initially planned.
The local currency at the weekend, appreciated from N575 to dollar to N570 to dollar at the parallel market. The naira further appreciated, closing the week at N560 to dollar at the parallel market.
Central Bank of Nigeria (CBN) Governor, Godwin Emefiele said the apex bank only recognised the Investors’ and Exporters’ (I&E) Forex Window as the right rate for forex trading. The local currency at the weekend, closed at N410.7 to dollar at the I&E forex window.
The Eurobond issuance had immediately impacted positively on the naira, which saw the local currency gradually rebounding.
The three-tranche deal will help finance projects outlined in the Nigerian 2021 Appropriation Act, as well as boost the reserves and leading to gradual recovery of the naira.
In an emailed report to investors, Trading Desk Manager, AZA, Murega Mungai, said the naira will in the next seven days, appreciate on the parallel market.
The naira halted its recent depreciation against the dollar after the CBN, last Friday shut AbokiFx, a key website that publishes daily updates on the currency’s unofficial market rate.
The naira has appreciated from N570 to dollar to N560 to dollar since Emefiele accused the AbokiFx platform of manipulating prices and undermining the economy.
The CBN has also called for the support of the International Air Transport Association (IATA) to curb ‘Ticket renting’.
Ticket renting is a nefarious activity where air tickets are being issued to unscrupulous persons for the fraudulent purchase of BTA and then voided once the economic fraud has been committed.
This was disclosed by IATA via a memo entitled: “Issuance of Tickets for the Fraudulent Purchase of BTA”, issued to the National Association of Nigerian Travel Agencies (NANTA) calling for their cooperation to tame the menace, which the CBN described as economic sabotage, as it constitutes a leakage in its foreign exchange supply system.
The memo, which was signed by the Head of Account Management, West and Central Africa, IATA, Samson Fatokun, stated: “The Central Bank of Nigeria (CBN) called my attention to the criminal practice of air tickets being issued to unscrupulous persons for fraudulent purchase of BA and same tickets are voided the same day once the economic fraud has been committed. This nefarious activity amounts to economic sabotage as it constitutes a leakage in the CB foreign exchange supply system.
“Issuing tickets for the sole purpose of purchasing BTA and voiding those tickets, thereafter, termed ‘Ticket renting’, is fraudulent and amounts to participating in economic sabotage.You are advised to alert your members about this fraudulent practice and warn that whichever agent that might be involved in this economic sabotage to desist from it. The Central Bank of Nigeria expects our utmost cooperation.”
The apex bank supports a strong currency and has sold over $20 billion in each of the last three years defending the naira against the dollar to check the soaring inflation.
Recent data from the CBN showed that the apex bank sold a total of $1.47 billion to authorised forex dealers in January, this year alone.