NAIRA REGAINS STRENGHT AS NNPCL BOOSTS FOREX SUPPLY WITH $3BN LOAN

 

The Naira yesterday recorded significant gain against the dollar in the parallel market and the official Investors and Exporters, I&E window even as the forex market received a major supply boost as   the NNPC Limited secured a $3 billion facility from the AfreximBank aimed at stabilising the exchange rate.

Latest report showed that   the   Naira appreciated by N28 or 3.8 per cent   in the parallel market, as the exchange rate fell to N885 per dollar from N920 per dollar on Tuesday. The Naira also appreciated by N21.44 per dollar or 3.25 per cent in the official I&E window as the indicative exchange rate fell to N759.86 per dollar from N781.30 per dollar on Tuesday.  

Parallel market sources attributed the appreciation of the Naira to the recent   pronouncement of the Acting Governor, Central Bank of Nigeria, CBN, Mr. Folashodun Shonubi, which signalled that the apex bank would soon unveil measures to boost forex supply, tackle speculators in a bid to address continued depreciation of the naira.  

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In line with this trend, and in a bid to support the ongoing fiscal and monetary policy reforms of the federal government, the NNPC Limited   yesterday said it has signed a Commitment Letter and Term Sheet with AfreximBank for an emergency $3 billion crude oil repayment loan.

The company said the agreement was jointly signed by both parties at the bank’s headquarters in Cairo, Egypt.

NNPC Limited, in a statement, explained that the loan “will provide some immediate disbursement that will enable the NNPC Ltd to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilizing the exchange rate market”.

Last week, the Federal Government reported a 13.6 percent drop in daily crude oil production in the month of July, leaving the country seriously short of dollar revenues from crude oil export.