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Naira To Dollar: Aboki Fx Explains How It Get Information On Forex

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Naira To Dollar: Aboki Fx Explains How It Get Information On Forex

As Naira to dollar continues to drop in value, the Central Bank of Nigeria (CBN) had blamed the development on Aboki fx, a live exchange rate platform.

According to the apex bank, Aboki fx was fond of manipulating the forex market with rates, which was endangering the Nigerian economy.

Governor Godwin Emefiele who made this known at the just-concluded 280th Monetary policy committee (MPC) meeting held on Friday, September 17, 2021, however, assured that Aboki fx founder Oniwinde Adedotun would be prosecuted.

Emefiele further wondered if members of the public were ever curious about how Aboki fx secures the information it publishes on forex, especially on how the naira was valued.

Responding to the CBN governor, Aboki fx explained that it usually gets its information from bureau de change operators in Lagos.

“None of our data source providers know who we are or what their rates are being used for. This is to avoid any manipulation of rates. Our staff has a daily routine of going to the market to gather rates as all the BDCs in the country have their rates clearly displayed on their rates board and parallel market dealers give the information away freely. All we do is collate all that information and display it on all our platforms daily,” the firm said in a statement seen by Newsrand.

As regards allegations of fraud levelled against its founder by the CBN governor, the company said such allegations were not proven.

The firm said it doesn’t trade forex and it had always stated this on social media.

“Aboki FX purely provides benchmark parallel rate information which helps guide our users in almost 200 countries across the world. Aboki fx does not trade fx which we have always maintained in our emails and social media platforms,” it added.

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Economy

N-power Batch C Deployment: How Non-graduate Can Check Training Posting

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N-power Batch C Deployment: How Non-graduate Can Check Training Posting

It is no longer news that the Federal Government has announced the deployment of N-Power Batch C non-graduate tech-software beneficiaries.

However, while some of the beneficiaries have already checked their postings, Unmask NG understands that others were struggling to check theirs.

If you are one of the N-power beneficiaries having issues in checking their postings, follow the steps below:

1. Go to https://www.nasims.gov.ng

2. Click on the deployment page to see your training posting status.

NB: If you are posted, your training venue, training track, training main, training life skills, and remuneration details will be displayed.

It would be recalled that a few months after the inauguration of 510,000 Batch C1 graduate and non-graduate volunteers, a training portal had been opened for beneficiaries.

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Economy

Dollar To Naira: World Bank Tackles CBN On Forex Management

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Dollar To Naira: World Bank Tackles CBN On Forex Management

Dollar to naira alarming exchange rate has been a major issue causing setbacks for most businesses in Nigeria, and the World Bank has broken its silence about it.

In an interview published on Punch, Shubham Chaudhuri, World Bank’s Country Director for Nigeria, said the Central Bank of Nigeria (CBN) was deploying policies that don’t have the potency of addressing the lingering forex challenge.

According to Chaudhuri, even though the World Bank aligned with the CBN on the need to achieve price stability as one of its core mandates, it differed on the method and choice of policies in achieving this.

His words: “Nigeria, like many other countries, has gone through a very tough time, especially last year, with the price of oil falling, which had an immediate effect in terms of foreign currency inflows into the country because sales of crude oil are one of the biggest sources of foreign currency inflows into Nigeria.

“So, we recognise that in the middle of the economic crisis, Nigeria was under tremendous pressure, alongside the naira. One of the core mandates of CBN is price stabilisation. However, we differ with the CBN on how best this aim can be achieved.”

World Bank advises CBN on how to manage dollar to naira

For World Bank, it is not a smart thing to do for CBN to have multiple exchange rates, amongst other policies that bottle it up with pressures.

The World Bank director explained that it is pertinent for the apex bank to allow the naira to respond to pressures from market realities on its own.

“In the FX market, the way it works is to let the naira respond to very real pressures but in a way that let the steam off rather than bottle it. Because if you bottle it, the pressure does not get released, and at some points, there has to be a massive adjustment.

“Over the last year, the pressures have been building up. Finding ways to release some of the pressures by letting the naira adjust more gradually would help and keep the naira, in a long run, from depreciating by a very large amount,” he stated.

Chaudhuri also advised the central bank to adopt a more predictable, clear mechanism for the forex, as he expressed optimism that it would help in restoring and enhancing the confidence in the market.

“We haven’t had foreign portfolio investors come back to Nigeria since the COVID crisis, not at the levels that we saw earlier. Some of that has to do with what is happening to interest rates locally but some of that also has to do with their confidence – that if they do come into the market, they will be able to get the FX out again, repatriate their profits.

“What’s more concerning is foreign direct investors. FDI has not recovered. That also has to do partly with the level of confidence in terms of the ability to predictably access foreign exchange. While we understand and see what the CBN’s overall objectives are, we do differ on how those objectives might be obtained,” the World Bank boss added.

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Economy

NNPC: Petrol Subsidy May Hit N3trn

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NNPC: Petrol Subsidy May Hit N3trn

The annual subsidy on Premium Motor Spirit (petrol) will rise to N3 trillion if the current market realities persist. This is according to Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

Making this disclosure at a panel session during the 15th OTL Africa Downstream Week 2021 in Lagos, the Managing Director of PPMC, Isiyaku Abdullahi stated: “At $80 crude oil, 60 million litres daily consumption and N411/$1 forex, PMS under-recovery per litre will be N138/litre. Daily PMS under-recovery will be N8.3bn. Annual PMS under-recovery will escalate to N3 trillion.”

Newsrand understands that the sharp rise in global oil prices to record highs had pushed the subsidy cost being incurred by the Federal Government to N8.28 billion daily.

The subsidy, which the NNPC prefers to call ‘value shortfall’ or ‘under-recovery’, resurfaced in January this year as the government left the pump price of petrol unchanged at N162-N165 per litre despite the increase in oil prices.

The Federal Government had in March 2020 removed petrol subsidy after reducing the pump price of the product to N125 per litre from N145 following the crash in oil prices.

The NNPC, which has been the sole importer of petrol into the country in recent years, has been bearing the subsidy cost since it resurfaced.

Isiyaku said with the rehabilitation of the country’s refineries and the construction of condensate refineries as well as the Dangote refinery, the Nigerian fuels market would transform from import-dependent to a net exporter by 2024.

He said full deregulation of the downstream sector might push an accelerated switching to Compressed Natural Gas and Liquefied Petroleum Gas, subject to global energy prices trend in the near term.

According to him, the Petroleum Industry Act presents a unique opportunity for investments across the value chain.

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