Business and Brands
Naira strengthens against the US dollar to N856.57/$1 in the official market
Naira further gained against the dollar on Monday, 8th December 2024 at the official market, marking the third gain in the New Year.
The domestic currency appreciated 1.45% to close at N856.57 to a dollar at the close of business, data from the NAFEM where forex is officially traded, showed.
- This represents an N12.56 gain or a 1.45% increase in the local currency compared to the N869.13 closed the previous day.
Similarly, the naira appreciated at the parallel forex market where forex is sold unofficially, the exchange rate quoted at N1245/$1, representing a 0.80% increase over what it closed the previous day, while peer-to-peer traders quoted around N1235.17/$1.
What you should know
Afreximbank recently released $2.25 billion out of the $3.3 billion foreign exchange (FX) support facility to Nigeria’s FG to relieve the acute liquidity shortage in the country’s FX market.
This pivotal agreement was officially signed on December 29, 2023, marking a milestone in the financial cooperation between the involved entities, who also recently signed a $150 million deal.
- In this strategic financial arrangement, Afrexim Bank, fulfilling its role as the Mandated Lead Arranger, works in close coordination with the United Bank for Africa, which assumes the responsibility as the Local Arranger.
- The facility was successfully finalized with NNPC Limited acting as the principal financier.
The arrangement also includes Guvnor and Sahara Energy as key participants in the transaction, highlighting the collaborative effort of multiple stakeholders.
- The total transaction value is US$3.3 billion, a facility obtained through Afrexim bank to help boost dollar supply towards alleviating Nigeria’s current FX supply challenges in the NAFEM official trading window.
- The first tranche of the transaction amounts to US$2.25 billion. This sum will be deposited into a designated account at the Central Bank, and it is expected to ease forex liquidity pressures.
- UBA is also functioning as the Onshore Depository Bank for this arrangement.
- The Nigerian National Petroleum Corporation (NNPC) is facilitating the financing of this transaction, acting as a lender. Other major oil trading firms involved as sub-lenders include Sahara Energy, Vitol, Oando, and Gunvor.
- In addition to their roles in the transaction, UBA, Sahara Energy, Vitol, Oando, and Gunvor contributed $100 million to the facility.
- Entertainment19 hours ago
Olajumoke Onibread Gets New Opportunity In Life, Takes Fresh Move…(Videos)
- Politics10 hours ago
Ohanaeze Ndigbo Reveals Speaks On What Simon Ekpa’s Arrest Means For Igbo Nation
- News18 hours ago
Man found d3ad in Ogun hotel room four days after arriving from U.S
- Top Stories19 hours ago
Embattled UNIZIK VC Rejects President Tinubu’s Sack,Gives Reason
- Entertainment19 hours ago
Italian village offers $1 houses to Americans fleeing Donald Trump
- Top Stories10 hours ago
2023 Presidential Poll Not Rigged – Okupe To Peter Obi
- Top Stories17 hours ago
Reevaluate your economic policies….they have worsened lives of Nigerians – ACF tells President Tinubu
- News18 hours ago
NEWSPAPER HEADLINES FOR THURSDAY 21ST NOVEMBER 2024