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THE NATION THURSDAY, JANUARY 22, 2015

MONEYLINK

CBN stops dollar sales to BDCs

HE Central Bank of Nigeria (CBN) yesterday, stopped, with immediate effect, sale of dollars (forex) through the Retail Dutch Auction System (RDAS) and interbank to Bureau De Change (BDC) operators. A circular to authorised dealers signed by CBN Director, Trade & Exchange, Olakanmi Gbadamosi, however said the weekly sales of forex to BDCs will be sustained by the CBN based on the liquidity needs of the market. He explained that the regulator took the decision based on ongoing review of developments in the foreign exchange market and the need to check speculative demand in the market. Both the interbank and RDAS funds, he said, should be used for strictly funding of Letters of Credits, Bills for Collection and other invisible transactions. However, this is subject to appropriate documentation as provided by extant regulations. The RDAS and interbank funds, the he said, should no longer be sold to BDCs and other authorised dealers. “In continuation of the review of developments in the foreign ex-

•Emefiele Stories by Collins Nweze

change market and to curb speculative demand in the market, both the RDAS and interbank funds should henceforth be used, strictly for funding of Letters of Credits, Bills for Collection and other invisible transactions. It is also subject to appropriate documentation as provided by extant regulations,” Gbadamosi said. The CBN also reviewed upwards,

the Net Foreign Exchange Trading position from 0.1 per cent of the shareholder’s fund unimpaired by loses, to 0.5 per cent of the shareholder’s fund unimpaired by loses. Currencies Analyst at Ecobank Nigeria, Olakunle Ezun told The Nation that the CBN by the circular has not only stopped selling dollars through the specified channels to BDCs, but also stopped banks from doing same. He said the circular followed CBN Governor, Godwin Emefiele’s directive that the regulator can only meet all legitimate transactions of dealers. He explained that before now, BDCs relied heavily on banks in souring their forex, and that with the policy directive; volume of dollars to the operators will shrink. The CBN two weeks ago, given approval to additional 102 BDCs, bringing the total approved operators to 2,544 since the recapitalisation deadline elapsed in July. The CBN had in June announced a new minimum capital requirement of N35 million for the operation of BDCs in the country, up from the N10 million it was previously.

Entrepreneur praises Emefiele on reforms

N Entrepreneur and auto dealer in Lagos, Adejare Adegbenro has commended the Governor of Central Bank of Nigeria (CBN), Godwin Emefiele for his reforms in the apex bank. Adegbenro, who is the Managing Director/CEO of Balmoral International Limited, said in less than a month in office, the cashless policy became effective nationwide on June 30, though, spearheaded by his predecessor. He described his reforms as ‘having human face.’

The cashless policy started in January 2012, in Lagos as a pilot exercise before moving to Rivers, Kano, Ogun, Abia, and Anambra States as well as FCT, Abuja. The businessman, who is also a grandson of the late elder statesman and frontline nationalist, Pa Alfred Rewane, was particularly happy with Emefiele’s achievements in redirecting the activities of the Bureau De Change (BDC) in line with his ongoing reforms. He said: “His record of success arguably remains unprecedented.”

The current sanity in the operations of BDC in the country, according to him, is a welcome development from the unorganised system with the attendant leakages and impunity that has become the order of the day. Hr praised the CBN’s Governor’s courage and wisdom in the way he handled the initial protest and resistance that greeted his efforts at sanitising this sub-sector of the economy, adding that he supported Emefiele’s decision to block the leakages.

United Capital unveils financial markets report

NITED Capital Plc has released its Nigerian Economy and Financial Markets 2015 report. The report provides a detailed review of the Nigerian market in 2014 with projections for the year. It discusses the outlook for different sectors, inherent opportunities as well as strategies for navigating the financial market. The report is an invaluable tool for investors covering Global economic review and outlook, Africa update and outlook, oil price dynamics and Nigeria 2015 outlook, domestic macro-economic trends and outlook, capital market review and outlook as well as specific sector reviews and recommendations. “We are pleased to release the

Nigerian Economy and Financial Markets 2015 report at United Capital. The report contains extensive research on capital markets, providing an in-depth analysis of various market groupings and industry trends that have shaped our predictions,” Group CEO of United Capital Plc, Toyin Sanni said. The report, he said, investigates the impact of the global economic and trade activities within advanced economies. It further dissects the impact of global financial activities on the Nigerian economy which is set to face one of the most difficult times in history, as global crude oil prices, a key anchor for fiscal strength and macroeconomic stability, continues on a downward trajectory in 2015.

Sterling Bank backs Social Media Award

TERLING Bank has reiterated its commitment to support social media projects. The bank, which sponsored Social Media Awards Africa holding in Lagos on Saturday, said the Chairman of the Award Advisory Board and founder, Social Media Week Toby Daniels has arrived in Lagos for the ceremony. Others include Fred Swaniker, Founder, African Leadership Academy and Eric Chinje, Chief Executive Officer, African Media Initiative (AMI). Other eminent members of the Jury & Advisory Board expected to come in on or before Friday are: Ken Banks, Founder, kiwanja.net; Hetal Shah, Director of Operations, Mara Group of Companies; Francis Ebuehi, Vice President VAS, Airtel Nigeria; Dr.Kasirim Nwuke; Louis Onyango Otieno, Director, Legal & Corporate Affairs, Microsoft Africa and the 45 prospective winners. The event which is a premier conti-

nental initiative seeks to recognize and reward creativity, excellence and impact the usage of social media across Africa. The event will bring together social media influencers, experts, enthusiasts and policy makers to explore and forge new developmental paths for social media in Africa. SMAA was unveiled at a closed event last September to a cross section of media professionals and social media influencers in Lagos, Nigeria. Nomination into the four categories opened on October 1, 2014 at www.smaafrica.com until midnight October 27, 2014. The voting phase, which was part of the process led to the emergence of 45 Finalists. A total of 923 nominations were received during the nomination period as follows: Personality Based (468), Platform Specific (266), Institutional (115) and Indigenous (74).

DATA BANK AFRINVEST W. A. EQUITY FUND ARM AGGRESSIVE GROWTH BGL NUBIAN FUND BGL SAPPHIRE FUND CANARY GROWTH FUND CONTINENTAL UNIT TRUST CORAL INCOME FUND FBN FIXED INCOME FUND FBN HERITAGE FUND FBN MONEY MARKET FUND FIDELITY NIG FUND • UBA BALANCED FUND • UBA BOND FUND • UBA EQUITY FUND • UBA MONEY MARKET FUND

125.78 9.17 1.12 1.19 0.63 1.39 1,734.04 1,101.29 112.61 121.16 1.67 1.29 1.32 0.95 1.17

125.70 9.08 1.12 1.19 0.62 1.33 1,734.04 1,100.53 112.00 120.30 1.62 1.28 1.32 0.93 1.17

O/PRICE 34.14 2.17 0.69 20.40 0.81 4.00 2.93 3.78 0.61 6.17 1.65 160.10 20.72

C/PRICE 35.84 2.27 0.72 21.28 0.84 4.10 3.00 3.85 0.62 6.25 1.67 162.00 20.96

CHANGE 4.98 4.61 4.35 4.31 3.70 2.50 2.39 1.85 1.64 1.30 1.21 1.19 1.16

LOSERS AS AT 21-01-15

SYMBOL

O/PRICE

PORTPAINT 3.89 IKEJAHOTEL 2.96 DANGFLOUR 3.69 AGLEVENT 1.25 WAPIC 0.57 WEMABANK 0.96 ZENITHBANK 17.50 CUSTODYINS 3.80 ACCESS 5.10 SEPLAT 305.00 NAHCO 5.00 OANDO 16.40 LEARNAFRICA 1.29

C/PRICE 3.70 2.82 3.52 1.20 0.55 0.93 17.10 3.72 5.00 300.06 4.92 16.14 1.27

Transaction Dates 13/01/2015 3/12/2014 1/12/2014 ECONOMIC INDICATORS

Inflation: December

CHANGE -4.88 -4.73 -4.61 -4.00 -3.51 -3.13 -2.29 -2.11 -1.96 -1.62 -1.60 -1.59 -1.55

Amount Offered in ($) 500m 400m 350m

Amount Sold in ($) 499.93m 399.97m 349.96m

CBN EXCHANGE RATES January 14, 2015

Monetary Policy Rate

GAINERS AS AT 21-01-15

SYMBOL UACN EVANSMED NEIMETH ASHAKACEM NPLMCRFBK UPL MANSARD UBA COSTAIN NASCON AIRSERVICE 7UP GUARANTY

RETAIL DUTCH AUCTION SYSTEM (RDAS)

Currency

Buying (N)

Selling (N)

167

168

13.0%

Foreign Reserves

$35b

US Dollar

Oil Price (Bonny Light/b)

$45

Pounds Sterling

261.9395

263.508

Euro

206.2617

207.4968

171.546

172.5732

Yen

1.3838

1.3921

CFA

0.2944

0.3144

242.3484

243.7996

Yuan/Renminbi

27.1505

27.314

Money Supply (M2)

N16.42 trillion.

Credit to private Sector (CPS)

N17.2 trillion

Primary Lending Rate (PLR)

Swiss Franc

16.5%

NIGERIAN INTER-BANK OFFERED RATES (NIBOR)

WAUA Tenor

13-01-15 Rate (%) Rate (%) 14-01-15

Overnight (O/N)

10.54

11.17

Riyal

44.4906

44.757

11.94

12.18

SDR

243.2856

244.7424

13.08

13.33

14.03

14.17

GOVT. SECURITIES YIELD – SECONDARY MARKET

Tenor

FOREX RATES

R-DAS ($/N)

165.29

Interbank ($/N)

162.75

Parallel ($/N)

185.50

Jan. 13, 2015

Rates

T-bills - 91

13.65

T-bills - 182

13.88

T-bills - 364

13.65

Bond - 3yrs

13.81

Bond - 5yrs

13.85

Bond - 7yrs

13.83