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Nigerian banks can now trade with deposited FX

Published

1 month ago

November 7, 2024

The Central Bank of Nigeria has announced a free foreign exchange deposit window for banks in the country with instructions on how to implement it.

The procedures for commercial, merchant, and non-interest banks to join the programme were outlined in the rules that the CBN published on Tuesday.

John Onojah, the acting director of the Financial Policy and Regulation Department, and Dr. Adetona Adedeji, the acting director of the Banking Supervision Department, jointly signed the notice of the scheme guidelines, which go into effect on Wednesday.

The “Guidelines On Implementation Of The Foreign Currency Disclosure, Deposit, Repatriation And Investment Scheme, 2024” paper states that banks are free to deal with the foreign exchange that scheme participants make available.

“Commercial, merchant, and non-interest banks may trade with any deposited ITFC (Internationally Tradable Foreign Currencies) not immediately invested by a participant, provided that the funds would be made available to the participant when needed.

“Interest payment by CMNIBs on the balance in the designated domiciliary account shall be in line with relevant provisions of the Guide to Charges by Banks and Other Financial Institutions in Nigeria,” part of the guidelines read.

The Nigerian government recently announced a nine-month scheme that will allow people to deposit dollar bills held outside of the official banking system without being scrutinised. The program will start on October 31, 2024.

In its most recent instructions, the apex bank also said that banks must request information such as a Tax Identification Number (for legal people) or a Bank Verification Number and National Identification Number (for natural persons and directors of incorporated businesses).

The applicant’s designated domiciliary account details, the amount of the ITFC to be deposited, and any other information the bank may occasionally need are among the other criteria.

Additionally, the CBN insisted that banks not violate anti-money laundering, anti-terrorism financing, and anti-proliferation financing rules and regulations.

Related Topics:Featured Foreign exchange Nigeria

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Egypt’s November inflation drops to 25.5%, near 2-year low

Published

1 day ago

December 11, 2024

Ifeoluwa Dada

According to figures released Tuesday by statistics agency CAPMAS, Egypt’s annual urban consumer price inflation rate fell more than anticipated to 25.5% in November, the lowest level since December 2022.

Following the Russian invasion of Ukraine, which caused international investors to pull billions of dollars out of Egyptian treasury markets, inflation started to rise sharply in early 2022.

In September 2023, headline inflation reached a record high of 38.0%. It dropped to 26.5% by October 2024.

In a Reuters survey last month, 15 economists’ consensus prediction was for annual inflation to gradually decline to 26.4%.

According to CAPMAS statistics, headline inflation decreased from 1.1% in October to 0.5% in November every month.

Compared to October, when they fell 1.1%, food costs fell 2.8% over the month, making them 23.3% more than they were a year ago.

An increase in the money supply has been a major contributor to inflation. According to central bank data, Egypt’s M2 money supply increased by 29.54% in October compared to the same month last year.

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Nigeria creates N20bn consumer credit fund for domestic automakers

Published

3 days ago

December 9, 2024

Ifeoluwa Dada

In an attempt to increase demand for cars built domestically, the Nigerian government has established a N20 billion consumer credit facility programme.

The goal of the programme, which is run by the Nigerian Consumer Credit Corporation (Credicorp), is to keep customer interest rates to single digit.

The fund aims to remove obstacles that consumers face when purchasing cars on credit, according to Credicorp Managing Director/CEO Engr. Uzoma Nwagba, who spoke at the official launch/agreement signing between Credicorp and the National Automotive Design and Development Council (NADDC) in Abuja.

Nwagba said that the credit economy contributed to the creation of jobs and wealth for Nigerians as well as to the enhancement of residents’ quality of life.

According to him, the government is dedicated to helping the industry in order to guarantee its expansion and survival. According to him, the N20 billion fund was only the start, and if the initial support proves effective, the government intends to create a larger fund.

Earlier, Mr. Joseph Osanipin, the Director General of NADDC, stated that the industry’s expansion depends on the demand side of the car market being improved.

According to Osanipin, credit programs enable consumers to acquire brand-new cars of their choosing, but in the majority of prosperous nations, people do not pay cash for cars and other autos.

According to him, the program, which covers all types of autos such cars, vans, tricycles, and motorbikes, is available to all Nigerians and involves automakers that produce or assemble their goods entirely domestically.