Local Currency Falls to N416.50/$1 as Bitcoin, Others Gain | Business Post Nigeria – Business Post Nigeria


By Adedapo Adesanya
The local currency weakened against the US Dollar by 50 kobo or 0.12 per cent at the Investors and Exporters (I&E) segment of the foreign exchange (forex) market on Wednesday, November 9.
According to data obtained from the market yesterday, the value of the Naira to the Dollar was N416.50/$1 compared with the preceding day’s N416/$1.
The domestic currency suffered the loss despite a 26.0 per cent or $27.31 million decline in the demand for FX at the market window on Wednesday.
During the trading day, the value of transactions at the I&E stood at $77.61 million compared with the turnover of $104.92 million recorded on Tuesday.
It was not different at the interbank market window, where the Nigerian currency also suffered a loss against the United States currency, depreciating by 17 kobo yesterday to sell for N414.61/$1 in contrast to N414.44/$1 of the previous day.
In the same vein, the Naira depreciated against the British Pound Sterling at the midweek session by N2.25 as it sold at N565.57/£1 versus Tuesday’s closing rate of N563.02/£1.
Against the Euro, the indigenous currency declined by N1.23 on Wednesday to trade at N471.25/€1 in contrast to N470.02/€1 it closed a day earlier.
Meanwhile, the cryptocurrency market witnessed a recovery on Wednesday as nine of the 10 digital coins tracked by Business Post recorded gains, with Cardano (ADA) rising by 8.9 per cent to trade at N754.47.
Ripple (XRP) appreciated by 6.8 per cent to N440.01, Litecoin (LTC) rose by 6.4 per cent to sell at N79,636.97, Binance Coin (BNB) gained 5.3 per cent to trade at N200,894.04, while Dogecoin (DOGE) appreciated by 4.5 per cent to sell at N93.56.
Further, Tron (TRX) made a 4.7 per cent rise to sell for N38.68, Ethereum (ETH) jumped by 4.2 per cent to trade at N1,921,793.40, Bitcoin (BTC) improved by 0.1 per cent to quote at N24,403,999.09 just as the US Dollar Tether (USDT) appreciated by 0.1 per cent to sell for N569.83.
But Dash (DASH) depreciated by 0.2 per cent during the trading day to sell at N81,844.35.
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Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.
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By Aduragbemi Omiyale
The Association of Bureaux De Change Operators of Nigeria (ABCON) has said foreign exchange (FX) users, especially in the Micro, Small and Medium Enterprises (MSMEs) sector of the economy, are undergoing untold hardship because of the decision of the Central Bank of Nigeria (CBN) not to sell forex to Bureaux de Change (BDCs).
The group said the FX funding stoppage was hurting the nation’s economy as many medium and small scale users of foreign currencies were having it tough to process Form M in commercial banks for the importation of items needed to complete their productions.
Speaking at its Quarterly Economic Review Report for the fourth quarter of 2021, the organisation advised the bank to consider removing restrictive controls that make it difficult for its members to compete for the $20 billion inflow in the unofficial forex market.
“These and more opportunities are open to the BDC sub-sector to research and evolve operational strategies and techniques without recourse to funding from CBN,” ABCON stated.
As regards the high import bill of the nation, the association said efforts must be made to tackle the issue so as to strengthen the Naira against the major foreign currencies.
“Data from Nigeria Bureau of Statistics (NBS) shows that Nigeria’s import bill rose by 51.1 per cent year-on-year to N8.15 trillion in Q3 2021.
“For as long as imports are increasing without matching equivalents in exports or foreign exchange inflows, the currency must depreciate,” it said.
“By principle, a depreciated currency makes exports of a country cheaper in the international market thereby increasing inflow of foreign exchange but unfortunately for Nigeria, the sectors where it has comparative advantage to excel is grossly traumatised by terrorism and insurgency due to lack of will power of government to control the situation,” it added.
“The serious consequences of the continuous trade deficit are that it also affected the country’s balance of payment account, thereby causing more pressure on the exchange rate.
“Inflation-linked devaluations, which often seemingly lead to higher rates of inflation in the absence of sound domestic policies, are damaging. Government should allow economic reasoning to outplay political tendencies which in the long run may lead the economy into catastrophic consequences,” ABCON stated.
By Adedapo Adesanya
The Federal Government of Nigeria has released 49 new high yield crop varieties to farmers through the National Varieties Release Committee (NVRC) to boost food production in the country.
This was disclosed by Mr Oladosu Awoyemi, the NVRC Chairman at the 30th meeting of the National Committee on Naming, Registration and Release of Crop Varieties, Livestock Breed/Fishes in Ibadan, Oyo State yesterday.
He explained that “All the 49 hybrid varieties of 11 crops submitted for consideration, registration and release by the Nigerian research institutes and private sector seed companies were approved for release.
“The released crop varieties include two rice hybrids namely Arize 6444 Gold and Arize TEJ Gold.
“Two high protein-rich oat varieties namely SAMOAT 1 and SAMOAT 2, three Durum wheat varieties namely LACRI-WHIT 12D and LACRI- WHIT 13D.
“Three pro-Vitamin A hybrids cassava, namely UMUCASS 52, UMUCASS 53 and UMUCASS 54.
“Nineteen maize varieties namely ILOMAZ 2; HAKIM 1, HAKIM 2; HAKIM 3; DK7500; SAMMAZ 64, 65, 66, 67; Drought TECO WE8206; WACQH6, WAC55E, WAC14M5, among others.”
On the activities of NVRC, he said the decree that set up the committee makes it mandatory “for anybody who wants to release new varieties of crop into the Nigerian farming community to send samples of that seed to research institute that is relevant for it”.
“The research institute will test such seed across the ecological zones for which it is recommended.
“And, when they are satisfied that it is suitable for cultivation in Nigeria, then, they will bring it to the committee to officially consider it for release on registration.
“We have a national register of all important that are produced in Nigeria that has been certified by the committee.
“And, if there is any new research officer who wants to go into any crop he has to go into the register to see what has been done in the past before he can now start of what to do in the future,” he explained.
In his remarks, Mr Mohammed Al Hassan, the Commissioner for Agriculture in Jigawa, who sponsored the release of Durum Wheat said, “this is the first time hard wheat (durum wheat) would be registered and released to Nigerian farmers.
According to Mr Alhassan, Durum wheat is very high in yielding as it has very low fertilizer requirement, and produces big grains which are attractive and the price is different in the markets which make it give farmers high earnings.
He said that the expectation of farmers in Jigawa was to continuously improve varieties of various crops planted in the state.
Mr Alhassan said the vision of the state government “is to make sure that economy of the country was improved through agriculture for the benefits of Nigerians, especially people of Jigawa.”
On his part, Mr Sheu Ado, the National Coordinator for Maize Research, said the development in the new crops varieties were encouraging.
According to Mr Ado, some crops, which are not even grown previously in the country, such as oat, “is now being cultivated to improve the availability of food in the country.
“If we can grow our own oat, then, such amount of money expended in foreign exchange on importation of oat will be conserved for the country.”
In his remarks, Mr Olusegun Ojo, the Director-General of National Agricultural Seeds Council (NASC), said the 49 crops that have been officially released by the committee would be passed on to the council.
Mr Ojo said the council would make arrangements for wide multiplication of the crop for distribution to all farmers across the country.
“The expectations of the farmers will be higher yields, better resistance crops and at the end of the day, what farmers will be taken home as a result of the higher yields would be higher productivity and more income in their pockets.
“The process of getting a crop released for broad distribution involves testing the seed at research institutes and on farmers’ fields across the country.
“It is only when representatives of farmers have accepted that the crop is good for them and that such crop is better than the old varieties, then we bring it to the committee for consideration for official release,” he said.
Adding his input, Professor Abdullahi Mustapha, the Director-General, National Biotechnology Development Agency (NABDA), said the agency was saddle with the responsibility of looking into the genetic constituents of the crops.
“Looking at it from that angle, this is the transformation of the crops and bringing in new varieties of the crops; it affects genes constituent so the gene threat is what defined the quality, the yield and characters there.”
By Dipo Olowookere
The stop rates of Nigerian treasury bills witnessed an increase at the primary market on Wednesday when the Central Bank of Nigeria (CBN) approached the market with N77.6 billion worth of the asset class.
As usual, the appetite of investors for the investment tool remained high and in order not to disrupt this, the apex bank decided to raise the rates.
According to details of the exercise, market participants staked N113.1 billion on the treasury bills offered in three different maturities.
However, much of the subscriptions were for the long end of the curve as the short and mid-tenors suffered low subscriptions.
Business Post reports that the 91-day bill received bids worth N2.5 billion of the N4.2 billion auctioned by the central bank, while bids worth N2.3 billion were received for the 182-day bill, lower than the N7.5 billion offered for sale.
But the 364-day bill recorded subscriptions valued at N108.3 billion, higher than the N65.9 billion brought to the market for sale.
In terms of the allotment, the CBN sold N2.2 billion for the three-month instrument, N1.5 billion for the six-month T-bills and allotted N53.9 billion worth of the 12-month bill.
From the analysis, the central bank only sold N57.6 billion worth of the treasury bills to traders at the primary market yesterday, significantly lower than what it intended to sell.
As for the stop rates, the apex bank raised the 91-day bill to 2.50 per cent from the preceding exercise’s 2.49 per cent, while the one-year bill cleared at 5.50 per cent compared with the previous PMA’s 4.90 per cent, with the 182-day tenor slashed to 3.44 per cent from 3.45 per cent.
From what happened yesterday, investors should be expecting another rate hike at the next exercise so as to further jerk up the hunger for treasury bills at the fixed income market in Nigeria, especially at a time inflation rate remains high in double figures.
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