The Central Bank of Nigeria CBN has overtime, pledged to meet all genuine foreign exchange forex demands of individuals and manufacturers. But that promise has collapsed in the face of rising forex scarcity and ongoing rationalisation of available forex for qualified users, especially manufacturers. Manufacturers now source extra dollar for raw materials imports from the parallel market, with dire consequence on product costs and sustainability of their operations.

That this is happening at a time more productive activities are needed to steer the economy out of recession and cut job losses across different segments of the economy is worrisome, writes COLLINS NWEZE. It was Monday morning on April In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. The practice, which was confirmed by several bank customers affected by policy shift, is affecting the production volumes of major manufacturers and hurting turnover of major businesses.

The bank pegged it at that amount to ensure that the scarce dollar goes round. The company based in Otta, Ogun State, produces Adstar type polypropylene, agro-allied and shopping bags needed for the production requirements of cements and other products.

Obasanjo said the banks have a big role to play in supporting the manufacturers, while the government should strive to fix the fundamental problems currently facing the economy, which include over dependence on crude oil, too much import and small export.

People that need dollar to pay school fees, and perhaps medical bills may decide to wait until a favourable exchange rate is achieved, but manufacturers have to maintain their customer base, and remain in business. He said the CBN has done well in stablising the exchange rate, but believed that more stills needs to be done. A manufacturer, who does not want his name in print, claims the policy is affecting his operations, and also clarifies what is going on.

But the big question is: Sounding optimistic, he hoped that in the future, if the availability of dollars improves, the CBN may review that plan but for now, that is the situation. The Lagos Chamber of Commerce and Industry LCCI called on the CBN to review its forex policy and give manufacturers better opportunity to thrive.

Its Director-General, Muda Yusuf, picked holes in the rationing of forex by banks, saying it would cut production volumes and discourage investments in the economy. The good news is that some progress has been made in the last couple of weeks to shore up this confidence. The banks should therefore avoid any actions that could reverse this progress or undermine the growing confidence level. Yusuf said reports of rationing by banks could give wrong signals to the players in the economy, trigger another round of uncertainties and activate new momentum of speculative activities in the forex market.

The idea is that by creating a market for some types of investment transactions, policy makers can satisfy calls to float the currency without risking an inflationary spiral that may come from a formal devaluation. He said that the ongoing forex rationing is likely to end when the CBN has enough dollar to go round.

On whether the ongoing rationing can lead to job losses, he said: I believe we have suffered the worst of situations.

Former Executive Director, Keystone Bank, Richard Obire, said the era of full forex availability is over, and we are in a regime where forex is scarce. He said the rationing of forex is not good enough for genuine manufacturers and could lead to more earn money by visiting sites in the economy if forex is not accessed at and when needed.

He said although forex availability has improved, there is need for companies to also use local raw materials so as to reduce the demand for forex. He said that forex scarcity has led to many banks closing their branches, job losses in telecoms and other key sectors of the economy.

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MTN Nigeria, for instance, a fortnight ago sacked workers while Ecobank Nigeria closed make money bartending review of its branches as rising current development stock exchange market capitalization nigerian of operations worsened.

Obire said not adequately providing forex to real sector operators can worsen the fate of the companies, as rising cost of operations impact on their profitability. Still, Group Forex brokers in sweden Executive Officer, Ecobank Group, Ade Ayeyemi, defended the forex policies and actions of the CBN. He spoke in South Africa at the World Economic Forum for Africa.

Ayeyemi said the CBN was in the best position to decide forex management issues based on facts available to the eads stock market listing regulator.

Buoyed by knock-on effects recognized stock exchange sfc the significant improvement in fiscal balance and the forex market — particularly related to forex liquidity — April manufacturing PMI expanded to The major drivers of the expansion in composite PMI were production level Other analysts said ongoing rationing forex blog wordpress theme forex will adversely affect the manufacturing sector, exchange traded futures investopedia reverse the gains of recent months.

For instance, at the height of forex scarcity last year, South African firms, Truworths and Clover announced their exit from Nigeria back in February last year, due to difficult operating environment. Tiger Brands also sold off forex is the most tough job of the world stake in Nigeria-based Dangote Flour, following challenging economic environment, biggest of which was forex scarcity.

Rewane said Nigeria is expected to return to positive growth this year at 0. Speaking at the Access Bank Forex Seminar held in in Lagos at market quest stock webquest middle school weekend, with the theme: Speaking on exchange rate stability, Managing Director, Renaissance Capital RenCap Nigeria, Temi Popoola, said the rate at which the naira exchanges against the dollar is inconsequential.

He said the most important thing was for the investors to be able to come in and exit at will without encumbrances. It has been a difficult time for banks.

Assuring Access Bank customers that it will continue to meet their demands, Olagunju said: That shows we are with you all the time. The Chief Executive Officer FMDQ OTC Securities Exchange, Bola Onadele, said foreign investors are warming to the foreign-exchange window to ease a severe shortage of dollars.

The forex is the most tough job of the world opened on Monday at Eligible transactions in the window include those for loan repayments, interest payments, capital repatriation and remittances. While Nigeria devalued the naira on the interbank market last June, it stopped short of allowing a free float and intervened to prop up the exchange rate.

Investors, concerned that the currency was overvalued, have stayed on the sidelines. Onadele, a former chief trader at Citigroup Inc.

Any foreign portfolio investor that wants to leave Nigeria will get its money. The CBN has consistently warned lenders to play by the rule in the forex market and equally sanctioned those that violate regulations.

Last week, the CBN barred 16 commercial banks from accessing forex from the newly instituted SMEs Forex Window for refusing to sell forex to genuine Small and Medium Enterprises SMEs that met disbursement requirements. Okorafor said appropriate sanctions are spelt out by the CBN Act and the Banks and Other Financial Institutions Act BOFIA. He said staff and even chief executives of banks the affected banks could be punished where necessary.

The CBN spokesman said the apex bank has already received series of complaints from bank customers, especially those that operate in the SMEs segment of the market that banks are frustrating their efforts at getting forex.

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He said some entrepreneurs still complain that banks are frustrating their efforts at obtaining forex for their eligible imports after the stipulated 48 hours. Give us the name of the bank, branch and send to us and we will deal with them as example to others.

He warned that the CBN would not allow any form of instability in the interbank forex market. Do you support the acquittal of the Senate President Dr. Bukola Saraki by the Code of Conduct Tribunal? My name is Damilola, and today I want to share with you my real life story of how I married my husband who could not per Advert Rates News Columnists Monday Sam Omatseye Soji Omotunde Emeka Omeihe Femi Macaulay Tuesday Olatunji Dare Olakunle Abimbola Sanya Oni Wednesday Mohammed Harunna Dele Agekameh Tony Marinho Thursday Gbenga Omotoso Lawal Ogienagbon Dapo Fafowora Jide Osuntokun Jide Oluwajuyitan Gbogun gboro Friday Segun Gbadegesin Olatunji Ololade Femi Abbas Louis Odion Steve Osuji Saturday Segun Ayobolu Ade Ojeikere Yomi Odunuga Dayo Sobowale Victor Akande Hannatu Musawa Sunday Tatalo Alamu Idowu Akinlotan Festus Eriye Biodun Jeyifo Ropo Sekoni Femi Orebe Tunji Adegboyega Lekan Otufodunrin Oyinkan Medubi Politics Business e-Business Editorial Hardball Opinion Cartoon Sports Health Entertainment Celebrity Magazine Education Campus Life Law.

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