Connect with us

Uncategorized

CBN’s ‘Form A’ policy drives positive sentiment in Forex market

Published

on

·    As volatility rate declines

By Emeka Anaeto,

A close monitor of the trajectories in Nigeria’s foreign exchange market has shown some positive turns in the retail end of the inter-bank market, which may have also accounted for similar development in the parallel market in the first 14 days of this year, ending last weekend.

The key driver of the change is linked to the most recent policy of the Central Bank of Nigeria, CBN, which allows individuals to apply for forex online, and get their supply. The new policy involves deployment of an electronic Form ‘A’ to expedite applications for Personal/ Basic Travel Allowance (PTA/BTA), medicals, education, and other remittances.

Vanguard findings reveal that as at last weekend, while exchange rate recorded minor uptick, volatility rate has recorded a decline at 0.13% on a 30-day moving average, down from 0.16% on a 90-day average.

The 30-day average coincides with the period the new Form A policy has run so far. The introduction of the e-Form A is just another of several initiatives of the CBN to ensure the easy accessibility of forex and related services to Nigerian bank customers.

This development was coming against the backdrop of the usually massive uptick in both exchange rate and volatility rate in the retail space especially on PTA/BTA transactions as students based outside the country begin returning to their schools.

So far So Good This Year

The Naira gained average of 1.58 percent or N7.56 against the United States Dollar at the official forex market in the first week of this year.

The local currency closed the first business day of the year at N423.56 to a US Dollar before improving in value to N416 against the greenback the next day where it hovered till end of the week.

The improvement in Naira value was after the market had digested the CBN’s currency adjustment. The apex bank had adjusted the Naira to Dollar exchange rate by N2 from N411 to N413 on the last business day of 2021, Friday December 31, leading to devaluation outcry across Africa’s largest economy, with the local currency plunging to as low as N435 against the United States Dollar at the official forex trading market and N575 at the unregulated parallel market, popularly known as the black market, before moderating to N416.

Last week was also fairly good for the local currency with relative stability in exchange rate.

But most important aspect of the new ‘Form A’ policy was the relative ease in accessing forex by individuals, a development which may have been responsible for the exchange rate stability in the 30-day moving average.

This development, according to traders, may have also reduced pressure on the parallel market channel which in turn moderated rate to about N565/$1.

Though most observers believe that the positive turn in the market is still too early to be conclusive on the effectiveness of the policy but it is also show the determination of the apex bank to sustain the fight against bottlenecks that have bedeviled many public policies in Nigeria, creating windows for corruption and arbitraging, especially in the financial markets.

The Policy

In a circular titled, “Automation of Form ‘A’ on the Trade Monitoring System” and signed by Dr Ozoemena Nnaji, Director Trade and Exchange Department, the CBN states that all hard copies of Forms ‘A’ created on or before November 2, 2021 (before the start of the e-Form ‘A’) must be used within 15 working days of the Form’s creation.

What is Form A?

‘Form A’ is an application form designed by the Central Bank of Nigeria to pay for service transactions (invisible trade).

The form allows customers to purchase forex at the CBN or interbank rate to make payments for eligible services as predetermined by the foreign exchange manual.

The e-Form ‘A’ is meant to replace its hardcopy from November 30, 2021. The Bank also noted that customers would pay a charge of N5,000 as fee per declaration of e-Form ‘A’.

The circular reads: “This is to inform all authorized dealers and the general public of the deployment of e-Form ‘A’.

“Accordingly, the e-Form ‘A’ shall replace the hard copy of Form ‘A’ for invincible transactions [PTA/BTA, medicals, education, other remittances etc.]with effect from November 30, 2021.

“Consequently, all authorized dealers are required to ensure that the processing of Form ’A’ shall only be done electronically on the Trade Monitoring System accessible at www.tradesystem.gov.ng.

“The general public is required to obtain a valid Bank Verification Number (BVN) from their authorized dealer Banks. The BVN is a prerequisite for customers to access the Trade System for e-Form ‘A’ application.

“The e-Form ‘A’ is web-based and allows the general public to initiate the Form from their offices/homes and submit same to the authorized dealer bank.

“A charge of N5,000 (Five Thousand Naira) as fee per declaration of e-Form ‘A’ is applicable with effect from November 30, 2021, and henceforth. There will be a direct debit from the processing bank’s current account for each declaration which should be recovered the charge on the customer by the bank. However, customers for the e-Form ‘A’ should be separated from other bank charges.”

“All hard copies of Forms ‘A’ established on or before November 2 2021 (prior to the commencement of the e-Form ‘A’) shall be utilized within 15 working days of the establishment of the Form.

“For the avoidance of doubt, all established hard copies of Forms ‘A’ for which disbursement had not been made within the transition period of 15 working days shall be deemed cancelled.

“All authority dealer banks are enjoined to inform their customers of the development for compliance.”

Banks responded

Nigerian banks in adherence to the directive issued by the Central Bank of Nigeria (CBN) have informed their customers that forex requests can be processed online.

The banks can now process forex requests online with CBN automated Forms A & NCX for invisible and non-commercial export transactions, according to emails sent to consumers.

Stanbic IBTC Bank informed its customers in an email, stating, “We wish to bring to your notice that the Central Bank of Nigeria (CBN) has deployed the automated Forms A and NCX for invisible and non-commercial export transactions (in addition to commercial export already on the platform) on the Trade Monitoring System (TRMS) platform.”

This, according to the bank, is to take advantage of digital technology to streamline the request process so that applicants can submit requests from the comfort of their own homes, as well as to unify the processes involved in completing these transactions and for global monitoring and reporting purposes.

It added: “It has therefore become imperative for every individual (Current and potential customer for invisible transactions such as tuition fees, upkeep, medical fees, personal travel allowance (PTA), business travel allowance (BTA), subscription, professional exams, and certification fees and other related requests) to immediately sign up on the Trade Monitoring System (TRMS) platform preparatory to cut over to the new system by the Central Bank of Nigeria (CBN).”

FSDH Merchant Bank Limited also sent a notice to its customers informing them of the CBN’s initiative to automate the processes of obtaining Forms A and NCX via online means.

The notice read, “Dear valued customer, we wish to bring to your notice that CBN has deployed the automated Forms A & NCX for invisible and non-commercial export transactions (in addition to commercial export already on the platform) on the TRMS platform.

Hence, it has become imperative for every individual (Current and Potential customers for invisible transactions e.g., for tuition fee, upkeep, medical fee, BTA/PTA, subscription, professional exams/certification fee, etc.) to immediately sign up on the TRMS platform preparatory to cut over to the new system by the CBN.

(The post CBN’s ‘Form A’ policy drives positive sentiment in Forex market appeared first on Vanguard News.)

Continue Reading

Uncategorized

63rd Independence: Tinubu Approves Wage Palliative for Junior Workers, Appeals for Patience Over Reforms

Published

on

President Bola Ahmed Tinubu has approved a temporary wage award for workers on the lower rung of the Civil to cushion the effects of economic reforms by the Federal Government.

In an Independence Anniversary broadcast to the nation on Sunday, the President announced a N25,000 addition to the monthly wages of the affected workers for the next six months.

President Bola Tinubu also said that the Federal Government has been taking the path to economic greatness since his administration assumed office in May, and that he was aware of the hardships being experienced by Nigerians, but affirmed that nothing good comes easy.

He appealed to Nigerians to remain resolute as the gains of the reforms will be visible and felt in a short while.

Full text of Presidential broadcast:

Dear Compatriots,

It is my unique honour to address you on this day, the 63rd anniversary of our nation’s independence, both as the President of our dear country and, simply, as a fellow Nigerian.

On this solemn yet hopeful day, let us commend our founding fathers and mothers. Without them, there would be no modern Nigeria. From the fading embers of colonialism, their activism, dedication, and leadership gave life to the belief in Nigeria as a sovereign and independent nation.
Let us, at this very moment, affirm that as Nigerians, we are all endowed with the sacred rights and individual gifts that God has bestowed on us as a nation and as human beings. No one is greater or lesser than the other.

The triumphs that Nigeria has achieved shall define us. The travails we have endured shall strengthen us. And no other nation or power on this earth shall keep us from our rightful place and destiny. This nation belongs to you, dear people. Love and cherish it as your very own.

Nigeria is remarkable in its formation and essential character. We are a broad and dynamic blend of ethnic groups, religions, traditions and cultures. Yet, our bonds are intangible yet strong, invisible yet universal. We are joined by a common thirst for peace and progress, by the common dream of prosperity and harmony and by the unifying ideals of tolerance and justice.

Forging a nation based on the fair application of these noble principles to a diverse population has been a task of significant blessing but also serial challenge. Some people have said an independent Nigeria should never have come into existence. Some have said that our country would be torn apart. They are forever mistaken. Here, our nation stands and here we shall remain.

This year, we passed a significant milestone in our journey to a better Nigeria. By democratically electing a 7th consecutive civilian government, Nigeria has proven that commitment to democracy and the rule of law remains our guiding light.

At my inauguration, I made important promises about how I would govern this great nation. Among those promises, were pledges to reshape and modernize our economy and to secure the lives, liberty, and property of the people.
I said that bold reforms were necessary to place our nation on the path of prosperity and growth. On that occasion, I announced the end of the fuel subsidy.

I am attuned to the hardships that have come. I have a heart that feels and eyes that see. I wish to explain to you why we must endure this trying moment. Those who sought to perpetuate the fuel subsidy and broken foreign exchange policies are people who would build their family mansion in the middle of a swamp. I am different. I am not a man to erect our national home on a foundation of mud. To endure, our home must be constructed on safe and pleasant ground.

Reform may be painful, but it is what greatness and the future require. We now carry the costs of reaching a future in Nigeria where the abundance and fruits of the nation are fairly shared among all, not hoarded by a select and greedy few. A Nigeria where hunger, poverty and hardship are pushed into the shadows of an ever-fading past.

There is no joy in seeing the people of this nation shoulder burdens that should have been shed years ago. I wish today’s difficulties did not exist. But we must endure if we are to reach the good side of our future.
My government is doing all that it can to ease the load. I will now outline the path we are taking to relieve the stress on our families and households.

We have embarked on several public sector reforms to stabilize the economy, direct fiscal and monetary policy to fight inflation, encourage production, ensure the security of lives and property, and lend more support to the poor and the vulnerable.

Based on our talks with labour, business, and other stakeholders, we are introducing a provisional wage increment to enhance the federal minimum wage without causing undue inflation. For the next six months, the average low-grade worker shall receive an additional Twenty-Five Thousand naira per month.

To ensure better grassroots development, we set up an Infrastructure Support Fund for states to invest in critical areas. States have already received funds to provide relief packages against the impact of rising food and other prices.

Making the economy more robust by lowering transport costs will be key. In this regard, we have opened a new chapter in public transportation through the deployment of cheaper, safer Compressed Natural Gas (CNG) buses across the nation. These buses will operate at a fraction of current fuel prices, positively affecting transport fares.

New CNG conversion kits will start coming in very soon as all hands are on deck to fast-track the usually lengthy procurement process. We are also setting up training facilities and workshops across the nation to train and provide new opportunities for transport operators and entrepreneurs. This is a groundbreaking moment where, as a nation, we embrace more efficient means to power our economy. In making this change, we also make history.

I pledged a thorough housecleaning of the den of malfeasance the CBN had become. That housecleaning is well underway. A new leadership for the Central Bank has been constituted. Also, my special investigator will soon present his findings on past lapses and how to prevent similar reoccurrences. Henceforth, monetary policy shall be for the benefit of all and not the exclusive province of the powerful and wealthy.
Wise tax policy is essential to economic fairness and development. I have inaugurated a Committee on Tax Reforms to improve the efficiency of tax administration in the country and address fiscal policies that are unfair or hinder the business environment and slow our growth.

To boost employment and urban incomes, we are providing investment funding for enterprises with great potential. Similarly, we are increasing investment in micro, small, and medium-sized enterprises.
Commencing this month, the social safety net is being extended through the expansion of cash transfer programs to an additional 15 million vulnerable households.

My administration shall always accord the highest priority to the safety of the people. Inter-Service collaboration and intelligence sharing have been enhanced. Our Service Chiefs have been tasked with the vital responsibility of rebuilding the capacities of our security services.

Here, I salute and commend our gallant security forces for keeping us safe and securing our territorial integrity. Many have paid the ultimate sacrifice. We remember them today and their families. We shall equip our forces with the ways and means needed to perform their urgent task on behalf of the people,
We shall continue to make key appointments in line with the provisions of the Constitution and with fairness toward all. Women, Youth and the physically challenged shall continue to be given due regard in these appointments.

May I take this opportunity to congratulate the National Assembly for its role in the quick take-off of this administration through the performance of its constitutional duties of confirmation and oversight
I similarly congratulate the judiciary as a pillar of democracy and fairness.

I also thank members of our dynamic civil society organizations and labour unions for their dedication to Nigerian democracy. We may not always agree but I value your advice and recommendations. You are my brothers and sisters and you have my due respect.

Fellow compatriots, the journey ahead will not be navigated by fear or hatred. We can only achieve a better Nigeria through courage, compassion, and commitment as one indivisible unit.

I promise that I shall remain committed and serve faithfully. I also invite all to join this enterprise to remake our beloved nation into its better self. We can do it. We must do it. We shall do it.!!!

I wish you all a happy 63rd Independence Anniversary.
Thank you for listening.
May God bless the Federal Republic of Nigeria.

Continue Reading

Uncategorized

Eid-ul-Mawlid: FG Declares Wednesday Public Holiday

Published

on

By Ojone Grace Odaudu

The federal government has declared September 27 as a public holiday to mark this year’s Eid-ul-Mawlid celebration.

Olubunmi Tunji-Ojo, minister of interior, announced the holiday on Monday in a statement by Oluwatoyin Akinlade, permanent secretary of the ministry.

The Eid-ul-Mawlid celebration is in commemoration of the birth of the Holy Prophet Muhammad (PBUH).

Tunji-Ojo congratulated all Muslims in the country and in the diaspora for witnessing this year’s occasion.

The minister urged Nigerians to embrace the virtues of hard work and peaceful disposition towards one another.

“His admonition to Nigerians is to imbibe the spirit of love, patience, tolerance, and perseverance which are deep spiritual virtues that the Holy Prophet Muhammad (Peace be upon him) exemplified,” the statement reads.

“Tunji-Ojo also urged Nigerians, especially our youths, to embrace the virtues of hard work and peaceful disposition toward fellow humans, irrespective of faith, ideology, social class, and ethnicity, and join hands with President Bola Tinubu’s administration in its effort to build a progressive and enviable Nation that all citizens will be proud of.”

Continue Reading

Uncategorized

Female wrestler Adekuoroye Obtains 2024 Olympics Spot

Published

on

Female wrestler Adekuoroye obtains a spot in the 2024 Olympics.

By Ojone Grace Odaudu

Odunayo Adekuoroye, a female wrestler representing Nigeria, won the bronze medal in the women’s 57kg division at the upcoming World Championships in Belgrade on Wednesday. She therefore became the nation’s first grappler to qualify for next year’s Olympic Games in Paris.

Adekuoroye overcame Turkish opponent Elvira Kamaloglu in the third-place match 9-5 to earn a spot in Paris.
Adekuoroye will compete in her third Olympic Games in Paris in 2024, aiming to win a medal after obstacles in Rio in 2016 and Tokyo in 2020.

The 29-year-old, who missed the African Wrestling Championship earlier this year, was charged with winning her first world title but dropped 6-4 in the quarter-finals against world No. 1 and India’s Sarita Mor on Tuesday.

She was however able to compete in the repechage on Wednesday, securing her third World Championships bronze medal and a spot to per take in next year’s Olympics.

Continue Reading

Trending

Copyright © 2021 Sunrise Magazine. All rights reserved