International forex broker, Forex Time (FXTM) has been named best online forex trading company of the year 2016 for its commitment to local traders. On April 22, FXTM received the new award for best online forex trading company of the year, at the Beacon of ICT Awards. The awards ceremony took place in Lagos which drew top politicians and government officials, as well as captains of the ICT and finance industries.tiny.cc Global award-winning forex broker FXTM achieved record growth in Nigeria in 2016, with an impressive 25% increase in actively trading clients. This rapid growth is down to the launch of several innovative products and services, including FXTM invest and the broker’s naira denominated trading accounts, as well as the expansion of FXTM’s local educational program.
The company’s copy trading and investment program, FXTM Invest, which launched last February, has also proven highly popular with Nigerian traders. At present, clients from Nigeria account for 36% of FXTM’s active investors, with a growth of 114% in registered accounts in 2016 and 2017 is on track to surpass these figures. In 2016, the broker introduce its first educational roadshow tailored specifically to Nigerian traders. The local educational events were led by FXTM’s head of education, Andreas Thalassinos, and saw the company host more than 650 attendees across a series of certified seminars and TINYURL.COM workshops in Lagos and Abuja. For traders who are already familiar with the essential ins and outs of trading and have put them into practice, FXTM Nigeria’s advanced forex course offers a deeper look into the world of professional trading. This course is geared towards understanding how professional traders operate. It focuses on the use and application of technical tools in day-to-day trading, as well as appropriate fund and risk management.
800,000 forex at N185 from CBN on the instructions of Emefiele and sold at N350 on the same day. 6m forex from CBN at N185 and sold at N362,“ the opposition party tweeted further. 22m from the CBN and sold at N362. 22m forex from CBN on the instructions of Emefiele and the company sold at N362 same day. 400,000 at N185 and sold for N340. Meanwhile, Presidential spokesperson Garba Shehu has denied the allegation. According to him, the day he chooses to start trading in FOREX, he will resign as a Presidential spokesman. 8,000 since becoming a presidential spokesperson. 2. Amounting to Eight Thousand Dollars (USD 8,000) sent to my daughter and nephews through UBA. 4. If I know the coward and psychopath behind the official @PDPNigeria handle, I will launch a defamation suit against him/her. 5. And I will claim money in millions as damages!
9 billion in assets from Nigeria's government, the bank's head said on Monday. Such a sum would be one of the largest financial liabilities imposed on Nigeria in its history, representing 20% of the currency reserves of Africa's largest economy and top oil producer. Central bank chief Godwin Emefiele said Nigeria had sufficient grounds to appeal the ruling, over an aborted gas project in the southern Nigerian city of Calabar, made on Friday in favor of Process and Industrial Developments Ltd. Emefiele told reporters in the capital, Abuja. Pressure has been building on the naira as oil prices drop and foreign investors lock in their profits on local bonds as yields have fallen from as high as 18% a year ago.
As yields have fallen, foreign inflows have slowed, in turn leading to a shortage of dollars and hurting the naira. In a further sign of pressure on the currency, President Muhammadu Buhari last week told the central bank to stop providing funding for food imports, his spokesman said. However Emefiele did not say what other measures the central bank might take to defend the country's currency or its foreign exchange reserves. Cobus de Hart, senior economist at South Africa's NKC African Economics. On Monday, traders were seeking higher rates for one-year treasury bills as the naira weakened, and bid-offer spreads doubled in volatile trades. The naira has been quoted at 364 per dollar for foreign investors since last week from 363.50, as liquidity dried up on the forex market.
Nigeria operates a multiple exchange rate regime that it has used to manage pressure on the currency. Last week, Emefiele met fund managers in London in a roadshow arranged by South Africa's Standard Bank (J:SBKJ) following its second debt auction that week, where the central bank told dealers to raise rates to lure foreign investors. Emefiele sought to reassure investors who were focused on the oil price and the bank's policy on debt sales, saying that the currency would continue to be stable. We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. Stay focused and on track. Only post material that’s relevant to the topic being discussed. Be respectful. Even negative opinions can be framed positively and diplomatically.
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Sunday Michael Ogwu, Kayode Ekundayo and Peter Moses — President Muhammadu Buhari on Tuesday gave a directive to the Central Bank of Nigeria (CBN) to stop providing foreign exchange (forex) for food imports. The directive, which was contained in a statement by his spokesman, has drawn reactions from experts and industry watchers; while some applaud the move, others are raising concern on the independence of the bank. Daily Trust, in this exclusive piece, dissects these views. A renowned economist, Prof. Sheriffdeen Adewale Tella, speaking to Daily Trust in Abeokuta, welcomed President Buhari's ban on access to forex for food importation, saying it would curb wastage of funds in that area.
The expert who is a Professor of Economics, equally said Buhari ought to have specified if the ban was placed on manufactured foods or not. But, it's good to ban some of these things so that we don't continue wasting money that is not there. On the overall objective of the statement, he said: “What President Buhari is saying is, “Let us see how we can grow the local economy. I don't know the evidence the president based his pronouncement on. But on a general perspective, we can't use monetary policy tools to fight every problem we have in Nigeria. That is very bad. The CBN has become a development bank; CBN has become an investment etc. The CBN is doing everything. MPC is not part of the CBN. And to underscore the importance of monetary policy, members who are not part of the executive committee members of the CBN have to be cleared by the Senate to ensure their capability, capacity, competence, integrity and so on. What the president should have done is constitute his economic team first; the team can sit and consider raising tariffs on imports for agricultural items.
For the second consecutive year, Nigeria has been the fastest growing market for retail forex trading. The industry is seeing a stable growth rate around the world, especially in Africa and Asia, but among all countries Nigeria is growing at the fastest pace. What makes forex trading so attractive to Nigerians? Will the country continue to grow its number of traders in the following years? What brokers do Nigerians use most? We'll try to answer these questions in this article. To better understand why Nigerians are so keen to embrace forex trading, we have to start with the national currency, the Nigerian Naira (NGN) and the way it has shaped the everyday life of Nigerians. Such exchange rate movement makes people aware of the realities of the forex market and of the potential winnings that can be obtained trading currencies.
If someone would have bought US dollars with all his Naira before the devaluation, and bought back his Naira two months later, he would have made a profit of 25% in only two months. And we're talking about dealing with zero leverage. The Naira was kept stable for another five years, going from 147 to only 165, which translates into a devaluation of 2% per year. The Central Bank of Nigeria tried to calm the anxieties of its citizens in relation to the value of the Naira by keeping a fixed exchange rate of 199 NGN for one USD. But market forces are too strong to be ignored for too long.
The Oil Price Crash had increased the pressure on the exchange rate to the point where the Central Bank had no other option but to let the Naira devalue again. From June to July of 2016 the exchange rate moved from 199 to 318 which represents a huge 60% devaluation in less than two months. Capital controls were imposed to limit the money that could be spent abroad and limit the USD outflows. The repeated devaluations of the local currency made the population extremely conscious about foreign exchange rates and how the currency markets work. People know their savings are not safe unless kept in a foreign currency such as the US Dollar or the Euro, and they also know that a lot of money can be made in the currency markets.
Investing in the stock markets is the most common way for people to invest their money for retirement in developed countries. This way, people hope to increase the value of their savings over a period of many years while taking limited risk. It is a wise choice when your savings are in the tens of thousands of dollars every year. In wealthy countries such as the United States or Switzerland, many families can afford to save 20,000 dollars per year for retirement. If they do so for 30 years, they can save 600,000 dollars for retirement. The problem with such long-term and low-yield investments is the high capital needed in order to achieve substantial earnings.
If you cannot afford to save large amounts of money, low-yield investments will generate too little profit and are not a solution for achieving the much needed financial independence. If you can invest only 1,000 dollars, you can't earn much by owning stocks and bonds. This is why in less wealthy countries people tend to look for alternative opportunities to multiply their money at much faster rates. This is where leverage comes into play. Trading forex is done through the use of Contracts For Difference (CFD). The forex brokers will only require a margin deposit that covers the potential loss of your operation, instead of charging the full amount traded. For example, an operation that uses a leverage of 1:100 will require only 1% of the traded amount as collateral.
This means that a deposit of 100 dollars will allow you to buy Euros worth 10,000 dollars if you are trading using 1:100 leverage. Forex brokers know that currencies move slowly, and in a day the price rarely moves more than 1% in the case of high traded currencies such as the US Dollar, Euro, Japanese Yen, British Pound or Canadian Dollar. This is why the brokers give leverage to their traders. The brokers make more money when their clients trade large volumes, because their commissions are proportional to the volumes traded. Because of that, the brokers want to give their clients the chance to trade larger amounts, as long as they can cover their potential losses with their margin balance. Based on historical volatility for various currency pairs, forex brokers have determined what are the leverage ratios that are safe to provide for their clients.
This means that when trading EUR/USD the broker will give you higher leverage compared to the trading of a high volatility pair such as USD/RUB. Most forex brokers offer at least 1:200 leverage for smaller accounts (those with less than 10,000 dollars in their balance). This is because they want even their smaller clients to trader high volumes. By using leverage, a trader can decide how much he wants to risk and how much the potential profit will be. You can double your money in a single day, but you can also lose your entire balance in the same amount of time if you use excessive leverage.
It is all up to the trader to decide how much money he is willing to win/lose in a small time frame. Nigerian traders are using leverage to their advantage, because they can aim for higher profits without having to deposit large amounts of money. Because of high leverage, forex trading is accessible to everyone, as you can deposit amounts as low as 10 dollars and experiment with the broker's platform and learn how to become a better trader. Many Nigerians have started with low amounts and once they mastered forex trading they increased the stakes to increase their profits.
High leverage brokers offer an unprecedented opportunity for Nigerians to trade on the forex market even if they lack the money to finance large forex trades. A mobile phone with an internet connection and as low as 10 dollars are enough to test the forex market nowadays. In order to trade on the forex market, Nigerians need to choose a broker. Currently there are no forex brokers based in Nigeria, but this didn't reduce the appetite of Nigerians for trading forex, as all the major international forex brokers accept traders from Nigeria. This gives Nigerians a wide range of options when it comes to the broker they want to use. Going with one of the highest rated forex brokers in the world will be a natural choice for most people.
Some of the major forex brokers are actively targeting the Nigerian market and have a large number of clients from Nigeria. All of them are very high rated brokers, which shows again that Nigerians have done their due diligence when it comes to selecting a broker and are trading with some of the best companies in the world. Forex trading is getting very popular in Nigeria with thousands of new traders joining the ranks every month. A combination of mobile trading platforms, high leverage and low minimum deposit requirements have made the forex market accessible to everyone. Choosing a forex broker can be a very daunting task because the number of available options is overwhelming. There are many reasons why people decide to open bank accounts offshore. They can include a better privacy protection, access to better banks where money are safer or simply better services that home based banks don't offer.
3.83 billion since it was established on April 24, traders said on Monday, with the naira trading more strongly than on the black market. The window, where buyers and sellers are free to agree an exchange rate, was introduced in April to try to attract foreign investors into the country and boost the supply of dollars. 354.8 million in the previous week, indicating a gradual return in investors' confidence to the West African nation's foreign exchange market. A central bank spokesman last month said the bank was, on average, responsible for less than thirty percent of trading in the investor market. The window, however, has effectively introduced yet another exchange rate to the five already in operation.
These include a retail rate set by licensed exchange bureaus, as well as official and black market rates. At the forex window, market regulator FMDQ OTC Securities Exchange quoted the naira at 364.56 to the dollar on Monday, versus 367 to the dollar on the black market. The local currency traded at about 520 to the dollar on the black market in February and at 400 in the forex window when it opened in April, with the two rates then starting to converge. Commercial lenders quoted the naira at 306 to the dollar on Monday, the level they have been quoting for around the last two weeks.
The Executive Vice Chairman (EVC) Nigeria Communications Commission (NCC), Umar Garba Danbatta has said that the commission is intervening to ensure forex support from the Central Bank of Nigeria (CBN). His words: “We are intervening in so many ways to see that our licensees have the necessary support from the CBN, for forex to be given at the prevailing rate. For the Universal Service Provision Funds(USPF), the money sought by the industry is so huge that the USPF cannot carter for it’’. The NCC boss explained that the issues of funding was critical to the industry and cannot come from government but private sector. According to him, what government does is to provide an enabling environment for ease of doing business. 68 billion investment already in Telecom’s sector in Nigeria is huge, but it is by no means adequate for one of the fastest growing telecommunications markets in the world. He said that the capital intensity of the industry, the need for service providers to increase their infrastructure deployment to satisfy, the ever-increasing demand, create room for double the size of this investment in the next ten years. Represented by Mr. Mohammed Babajika, Director Policy Competition and Economic Analysis, the NCC boss said, “We have about 40 million Nigerians yet to be reached with basic infrastructure and services. The NCC roadmap for broadband has created new frontiers for investment.
Philippe is currently OIM for Transocean on a semi-submersible in India. He started out in 1980 on a land rig in France as a Roughneck. In 1985 he progressed to Asst Driller and was transferred to West Africa offshore drilling operations for Cosifor-Techfor. He later went to Sedco-Forex and then Transocean where he spent 20 years between, Angola, Congo, Gabon, Cameron and Nigeria on Tenders, Semi-Subs and DP rigs - working his way up to an OIM position! Philippe then transferred to Asia and Australia for a few years on different types of floating Rigs. Married with 4 Kids, his youngest daughter is only 6 years old and is “keeping him young”. In his spare time he enjoys windsurfing, diving and gardening and he has delegated the spending of his £250 to his wife while he spends Christmas and New Year on the rig.
The Federal Government needs to harness opportunities in the Foreign Exchange Market to create jobs and fight poverty, Managing Director and Chief Executive Officer of MBA Forex and Capital Investment Limited, Maxwell Odum has said. He spoke during a press conference heralding the MBA Forex “From Bare2Blue” revolution in Lagos. He expressed optimism in the potential of foreign exchange in Nigeria to reduce unemployment and tackle poverty. He said institutional mechanism can be used to drive a profitable foreign exchange market adding that with government regulation in the market, Nigeria may be set on its pathway into drastically reducing unemployment and its increasing poverty level. Odum said the ‘Bare2Blue’ revolution will enable forex-driven financial diversification for sustained economic growth.
According to him, ‘Bare2Blue’ revolution is intended to change lives by providing jobs and streams of income for Nigerians through life-changing packages. He revealed that ‘Bare2Blue Banquet’ schedule to hold on August 16th and 17th in Lagos, will give the company opportunity to unveil its products. He called for regulation of forex companies in Nigeria, to protect people in forex business. “MBA Forex is changing the narratives, by pushing for regulation of forex companies coming into Nigeria. This will help in putting a check on fraudulent activities relating to Forex trade and also protect Nigerians by ensuring that people go into forex through right channels. Odum warned Nigerians not to see forex trading as gambling, saying MBA Forex and Capital Investment Limited is registered and certified by the Central Bank of Nigeria, CBN.
He also added that the company has also been cleared by the Economic and Financial Crimes Commission (EFCC). Those listed to also have certified the company include the Security Exchange Commission (SEC) and the Corporate Affairs Commission (CAC) to allay the fears of Nigerians on the issue of fraud. “Forex is not gambling and the risk is high. In MBA, we want to stabilise the system and make forex profitable to venture. We know the dynamics on how the market works, I want Nigerians to take advantage of it. 6.5 trillion daily. We have the expertise, knowledge and technical know-how.
We have what it takes to navigate into profit. For over two years, we have been consistent in getting lives changed through the forex market,” he said. Also speaking, the Business Development Manager of Exclusive Markets, Claude Herve Tchatchouang, said the foreign exchange market still remained largely unexplored in Nigeria. He noted that with the level of willing investors in the market, unemployment will be drastically reduced in the country.tiny.cc He added that with the transfer of knowledge and needed skill set to Nigerians on the opportunities in the market, Oma Reeder unemployment will be dealt with. “Forex market in Nigeria is a growing market, mainly unexplored for the time being. Right now we do understand that with the level of funding in the market, the level of unemployment can be drastically reduced. Because the market gives the stakeholders something they can use an alternative source of income and opportunity for employment. “Solving unemployment through forex market will be mainly through the transfer of knowledge because you need to particularly understand that forex is skill based business. It is not gambling and it has nothing to do with gambling. The way the business model was introduced in Nigeria was like an activity through which you invest and start gambling, but forex market in the real sense has nothing to do with gambling.
Nigeria's finance minister on Thursday played down an International Monetary Fund forecast that the country's growth would shrink this year, seeking to allay fears of recession in Africa's top economy. The IMF said on Tuesday it expected Nigeria's economy to contract by 1.8 percent in 2016 after having forecast a 2.3-percent expansion in April. But Kemi Adeosun said she was “not too worried” about the prediction, as the world body monitors global trends and had also warned about the impact of Britain's vote to leave the European Union. Senate committee hearing in Abuja. Nigeria [August 2019] - Forex Trading Tutorial For Beginners In Nigeria- on paper Africa's biggest economy [August 2019] - Forex Trading Tutorial For Beginners In Nigeria[August 2019] - Forex Trading Tutorial For Beginners In Nigeria depends on oil sales for 70 percent of government revenue but that has been slashed by low prices worldwide in the last two years.
The situation has complicated the task for the government, which has complained of being left a “virtually empty” treasury by the previous administration and the theft of vast sums of public money. It has struggled to pay public sector wages, while the naira currency has weakened, foreign exchange dried up and Oma Reeder investment stalled. The National Bureau of Statistics said this week that inflation rose to 16.5 percent in June [August 2019] - Forex Trading Tutorial For Beginners In Nigeria[August 2019] - Forex Trading Tutorial For Beginners In Nigeria the highest for nearly 11 years [August 2019] - Forex Trading Tutorial For Beginners In Nigeria[August 2019] - Forex Trading Tutorial For Beginners In Nigeria with predictions it could reach 20 percent by the end of the year. The central bank in May said recession was “imminent” after negative growth in the first quarter of this year. Figures for the second quarter are expected soon. But I don't think we should dwell on definition. That tells you that all the smuggling that was going out of the country based on the subsidy that we were providing has stopped.
LAGOS, Dec 19 (Reuters) - Nigeria's central bank on Monday asked banks to submit bids for a “special currency auction” to clear the backlog of matured outstanding dollar obligations for selected sectors of the economy, traders said on Monday. The central bank instructed commercial lenders to submit backlog dollar demand from fuel importers, airlines, raw materials and machinery for manufacturing firms and agricultural chemicals by 1500 GMT for a special forex intervention. Nigeria is in its first recession in 25 years, caused by low global oil prices which have cut the supply of dollars needed to fund imports. Attacks by militants on pipelines in the oil-rich Niger Delta since January have reduced crude output, reducing dollars earned.
Stakeholders in the agriculture sector of the economy have tackled President Muhammadu Buhari over his directive to the Central Bank of Nigeria not give foreign exchange to importers of food items. Some critics accused the president of taking the country back to the military era when directives are issued with military fiat. The Presidential directive, according to others will also kill many factories. According to him, “apart from affecting our capital base, our production output will be drastically reduced. We, the manufacturers depend so much on Forex to source our raw materials and so this policy will affect us negatively.
The CBN on its part does not help us either. Apart from not giving us any fund, the CBN does not give us loans at reasonable interest rate. They have a lot of terms and conditions which are not favourable to local manufacturers. He Cited Sonia Foods Limited, Lagos as one of the most affected local companies. Government policies, he argued “must be reviewed to stop making importation easier while those of us using local raw materials suffer. Even the importers who import concentrates to produce food are enjoying government patronage instead of the local manufacturers that use natural raw materials.
There should be a standard policy for those importing so that they will find it difficult to import those items we are producing here.tinyurl.com He said, “we may have food adequacy in the country meaning that we produce enough food for local consumption but we do not have sufficiency. We have to produce all kinds of foods and even export some, and then we can say we are sufficient. “When we import food, we have to be careful the kind of food we import. For instance, we have in Nigeria a lot of foreigners who may not eat the kind of food we produce here; therefore, their kind of food should be imported into Nigeria.
To do that, if we do not want to give them Forex, we are pushing them to source it from the open market. We need to carry out a detailed study before giving this kind of policy directive. By the president giving such directive, it brings to an end, the independence of the CBN. If they have done it by sending a memo to the CBN to consider the position, it would have been better. But by this way, it takes us back to the military era. “Again, this presidential directive may send wrong signal to potential investors, who might say if they come to Nigeria; they would not know what policy the government will come up with tomorrow and so stop investing in Nigeria. The president should have allowed the CBN to carry out its own study and come out with its findings. By the way we are going; it will push importers to start smuggling into the country. That is why it is good to follow policy process so that we will not make a mistake at the end and the aim will not be defeated.
Ike Ekweremadu, read out in the house. The naira's official rate, controlled by the government, has hovered just above 300 to the dollar since it was devalued in June. But the gap with the parallel market is discouraging investment from overseas and leaving Nigeria starved of foreign currency. By basing its budget on the official exchange rate, even though most individuals and businesses source dollars from the parallel market, the government is at risk of struggling to fund its economic plans. International financial institutions, among others, have argued that Nigeria must allow its currency to float freely to solve its foreign exchange woes, a measure which has met opposition from President Muhammadu Buhari.
The lawmakers' calls ramp up pressure on Buhari to address the forex gap, and echo comments on Tuesday made by his own vice president. Last year, Buhari told a gathering of business leaders that he did not see the benefit of the naira's currency peg against the U.S. The upper house passed a projected gross domestic product growth rate of 2.5 percent for 2017, suggesting optimism about a recovery despite Nigeria entering its first recession in 25 years last year. Also approved was a projected inflation growth rate of 12.92 percent for 2017, far lower than December's rate of 18.55 percent year-on-year, the 11th straight monthly rise and the highest inflation in over a decade. But despite the improved projections, the issue of the currency remains. The naira now has multiple exchange rates, which have created inefficiency and opportunities for corruption, analysts at Exotix said in a note. In an attempt to stop up the foreign currency shortfall, Buhari's government has been in talks with financial institutions, including the World Bank, for loans. But those efforts to secure funds have stalled because Nigeria has not submitted the required economic reform plans, according to one of the banks and sources close to the matter.
The foreign exchange policies of Central Bank of Nigeria is generating a fiery debate on its implications for the economy. Many high-profile Nigerians, including business leaders and former CBN governors, as well as the International Monetary Fund have fiercely criticized the policies and have called for devaluation of the naira. The main thrust of the argument against the CBN's forex policies is that it will hamper Nigeria's investment competitiveness. Nigeria's manufacturing output is expected to decline as companies struggle to obtain forex for the importation of vital raw materials. Foreign investors are expected to remain on the sidelines of Nigeria investment because of dollar illiquidity and capital controls.
Furthermore, currency speculators are having a field day, exploiting and exacerbating the arbitraging opportunity that has emerged with the wide disparities between the official and parallel markets exchange rates. At present the proponents of these arguments seem to have some facts to buttress their position. In order to counter these arguments, and dare to argue against fact [August 2019] - Forex Trading Tutorial For Beginners In Nigeria because it is presented out of context [August 2019] - Forex Trading Tutorial For Beginners In Nigeria it is important to present a holistic view of the underlying issue. As an import-dependent economy where oil is the major source of government revenue, Nigeria has been significantly impacted by the sharp decline in the prices of oil.
Oil prices have dropped by over 70 percent in the past 20 months, causing government revenues to plummet. This development has also caused Nigeria's foreign reserves to fall drastically as the CBN sought to defend the naira from nose-diving. As long as oil prices remain low because of unremitting oversupply, Nigeria has little wriggle room. We either continue to deplete our reserves defending the naira or devalue the currency. A realistic middle ground, however, is to curb imports so as not to face the longer-term consequences of either of the first two options. It is this third option that has inevitably created the sharp price contrast for foreign exchange, with the CBN protecting the official market. As mentioned earlier, many Nigerians have argued that the CBN should adopt the second option, which is to devalue the naira and let market forces determine its value.
Without a shadow of doubt, this would provide only very short-term relief. Foreign investors with hot money may cash in and invest, but such investments promote volatility and the disorderly exits we have experienced in more than a year now [August 2019] - Forex Trading Tutorial For Beginners In Nigeria something that is conveniently forgotten by the devaluation proponents. There is the argument that part of the dollar illiquidity is being perpetuated by local businesses who have refused to repatriate their export proceeds. Such capital importers could lose up to N200.00 on every dollar they would have to sell in the official market if they repatriated their funds. An extension of the argument is a terrifying prospect that the businesses would be unable to purchase forex in the same official market they had sold their dollars.
This argument, unwittingly, suppose that the CBN should conduct its forex policy to cater for currency speculators, who masquerade as local investors. Some of these businesses, in the first place, would have sourced the dollar for their export transactions in the official market. But now with the proceeds, they turn to currency speculators, wanting to sell at much higher parallel market rates. Needless to say that the initial businesses would have been done on the profitability of sourcing the funding and selling the dollar proceeds in the official market. Thankfully, the CBN has chosen not to devalue the currency. The Central Bank has opted for providing dollar liquidity to boost domestic production and import substitution. This is the only option that provides Nigeria with long-term benefits of domestic output growth, retention of oil proceeds, diversification of the economy, and creation of jobs.
An additional benefit is growth in non-oil export revenue. Successive governments have paid lip service to the difficult task of diversifying the sources of the country's forex earnings. But the CBN recognizes that Nigeria must seize this opportunity to kick-start the diversification process. It's a fact that no country has developed without implementing some form of the CBN's import substitution policies at one point in their history. Amidst the current decline in global commodity prices, it's noteworthy that Nigeria is not the only African economy to implement forex restrictions or currency pegs. The central banks of countries such as Angola, Rwanda, Mozambique, Ghana, etc. have all implemented some sort of forex controls to protect their foreign reserves and stabilize their currencies.
This trend suggests that commodity-exporting countries are starting to readjust their economic models to weather the current headwinds. President Muhammadu Buhari has rightly defended the CBN's anti-devaluation stance because of the inflationary impact devaluation could have on the Nigerian economy. High inflation will reduce the purchasing power of the vast majority of Nigerians, worsening their already dire economic and social conditions. This is a recipe for social upheaval. There is the big question as to whether the CBN can sustain its forex policies. Honestly, we don't know. However, if we keep the objectives of the policies in focus and work hard towards achieving them, the country would be better for it.
But what we know is that the alternative policies and the practices that the opponents are clamoring for have proven unsustainable, economically and socially. There's no gainsaying that the CBN's forex policies has caused hardships for individuals and businesses with legitimate forex needs. But Nigerians must understand that it is now or never if we want to develop our local industrial capacity. Neither side of the devaluation debate can win the argument any time soon. As long as businesses continue to face difficulties in accessing forex, they would believe devaluation will bring them relief; the grass is always greener on the other side. Equity investors at the NSE would continue to believe that devaluation would open the floodgate of capital inflows to reflate equity prices.
Moreover, a lot of Nigerians still feel entitled to their indulgences in foreign goods and services. But the CBN knows that the threat of devaluation-induced inflation is formidable. Inflation and its consequences can counter and reverse any of the immediate benefits of devaluation that are being propounded now. We have to even be very considerate of our wishes now. 100.00 a barrel, it can derail the current efforts to diversify the local production base. Our old habits may just as quickly relapse, and we would return to the position we are in today in the future. In other words, immediate rally in the price of oil may not even be beneficial. What would save us from our recurring economic woes and the absorbing, but fruitless debate, is progress with transforming our non-oil sector and reducing our external dependencies. The more quickly we commit to this, the sooner our dollar travail would end.
Forex trading in Nigeria can be a serious investment and before committing your money to the hands of the brokers, you should know how reliable and trustworthy they’re in trading Forex. Don’t assume all Forex brokers are dependable, in fact, many are outright frauds. That may help you make an informed decision in regards to the best Forex brokers in Nigeria. I’ve compiled a list of world most trusted and reliable Forex brokers in Nigeria, which is promising to invest. These Foreign exchange brokers and Forex trading platforms have been around for a while and it’s completely free to use. All you need to do would be to make a deposit and start trading, no extra or special fee is needed.
Another good thing is that these Forex brokers are around for both the beginner Forex traders and with the Pro Forex traders, no distinction and you’ll start with any minimum deposit that the Forex brokers allow in currency trading. 10. InstaForex - This Broker is based in Russian, works along with Asia, has offices in London and several other places around the world (including Nigeria). InstaForex has won many awards as one of the best Foreign exchange brokers on the planet and holds licenses in Brokerage, Dealing and Capital Management Services from the Russian government. InstaForex come with many trading and monitoring tools for open and easy Forex trading. It is amongst the biggest Forex brokers in the world and has been in operation for some time now.
FXTM could be the fastest growing Forex broker on the globe and also the founder is Andrey Dashin, the same investor behind Alpari Broker. FRTM is used by traders in over 180 countries and it’s licensed and fully regulated properly. The headquarters of FRTM is in Cyprus and can be located in the luxury five storey building in this country. ForexTime allows its customers to use, both mobile and online trading, and fully loaded with one of the coolest trading tools you can find any other places in the Forex market. 8. AVATRADE - This Brokerage has their headquarters located in the British Virgin Islands and it is regulated by the Irish Authority (MIFID) and ASIC.
AVATrade began in the year 2006 and became one of the world biggest FX Brokers. The company is owned and managed through the Ava Capital Markets Ltd; a subsidiary of Ava Financial Ltd. AVATrade is among the most reliable Foreign Exchange Brokers in the world. Trading forex with AVATrade is much easier if you know exactly what you’re doing with Forex signals. Practice/Demo Accounts Allowed: Readily available for all accounts. AVATrade also support both FX online and mobile trading which has a top notch support that is available 24 hours. 7. XTrade - This Forex Broker is top notch in most facets of trading. Founded in 2003 and properties of the XTB Limits, XTrade is believed to be among the best Forex Broker ever with many forex trading strategies.
XTrade is reliable and among the safest platform to trade Forex with over ten years’ experience in the online Forex trading game. XTrade is among the best Forex trading platforms out there and support both mobile and internet based trading. 6. XM Broker - This Forex Broker has more than 500 thousand clients, XM is probably the go-to FX broker when you need to make extra cash with Forex trading system. They are also located in Cyprus and managed by Trading Point Holdings Ltd, registration plate: HE 322690, ( Address: 12 Richard & Verengaria Street, Araouzos Castle Court, 3rd Floor 3042 Limassol, Cyprus).
If you want to start trading right now, this is one of the best position to begin and you are absolutely clear you’re trading in secured hands. 5. FXPrimus [August 2019] - Forex Trading Tutorial For Beginners In Nigeria It is a company to trade Forex, commodities, CFDs & indices together with the safest trading platform. Find out about this award-winning safe trading environment by yourself. It’s founded on a proven philosophy of success through security. FXPrimus pride itself as a leader in Forex Trading and excellence. They are one of the leading sponsors of Manchester City Football Team in England. With more than 100 thousand current clients, you’re sure to be in the hands of a great company loved by many Forex traders. 4. EToro - This is among the biggest name in the Forex marketplace and has been around for many years.
EToro brokers can be seen as a social trading and a multi asset brokerage company that has registered offices in Cyprus, Israel and Great Britain. One thing unique about eToro is that they allow its traders to look at the financial trading activity of other users, copy the skill, and earn their unique trades. With 4.5 million registered clients, you will understand that this company is actually among the giants in the world of Forex trading. They’re fully regulated by the world regulatory bodies and boast several of the best trading platforms. Much like most Forex Brokers, the company is located and headquartered in Cyprus.
Fully licensed and controlled by CySEC & FSB. The broker offers exclusive market analysis and news, live webinars, seminars, ebook and video libraries, along with free 1-on-1 online training with a personal account manager. 2. Alpari - This Broker is well respected in Nigeria and the company invites you to trade Forex with them with a promise to come out with the best result in trading currency. The company has received so many awards by year in the Forex Markets. With spreads from .1 pips, you can Leverage approximately 1:1000 and it comes with free analytical tools. Alpari is really a highly successful Forex Brokers with many different years of experience in the game. When it comes to Forex security and reliability, make sure you are dealing with the top in the Forex business. 1. FXPro -This is the number 1 Forex Brokers in the world and it has remained the best choice since 2006. FXPro is professional in Forex investment and one of the top Forex brokers. I hope reading this post will enable you to make the best choice when choosing the best Forex brokers in Nigeria. Do you have anything else to add to this article? Leave your comment below.
To start Forex trading investment used to be a mystery to private individuals. It was what only the banks were involved in and no private individuals ever dared venturing into it. This has however changed with the wide spreading of the internet. The internet has solved the issue of disconnect and made it possible for individuals to assess the market at ease. It’s Popular saying that one can even trade forex from the comfort of his bedroom. Interestingly, the market has a low entry financial requirement. 100 but this is not advised as the person will find it difficult to make reasonable profit. This article will point out the various ways that you can make money in the Forex market that you did not know.
Can Ordinary individuals still make money from forex trading? You can start trading investment as an individual. As a part-time or full time trader, how much profit do you stand to gain? What forex risks do you need to be aware of? Can an individual with average or basic knowledge about money market and financial management Start a forex business? This article will address the above issues and many more. So, follow through to the end and don’t forget to drop a comment. What Exactly Is Forex Trading? Forex trading can be defined as the online/internet currency exchange trade or an act of simultaneously buying and selling currencies of different countries online using internet trading platforms. Literally, Forex is a combination of the two Foreign Exchange, so, Forex Trading simply means Foreign exchange trading or trading on foreign currencies by its exchange rate.
Owing to the fact that Forex trading involves the trading in various currencies with disparities in their exchange rates, the ability to make profits or losses depend so much on the economic state of different countries at a time. The various factors that affect an economy at a time defers from those that affect the other economies at that time. Hence, the interaction between economies are volatile and never static. So, the forex market fluctuates with the economies as well. The currencies of the various economies in exchange for each other experience rises and falls due to so many reasons from demand and supply of currency to government fiats.
For instance the Dollar in exchange for the naira can rise or fall pending on how many people demand the dollar in exchange for naira and how many people demand the naira in exchange for the dollar. If more people demand the dollar in exchange for the naira, the value of the dollar rises and that of the naira falls. When the values of currencies fall, the forex market is affected. In the forex market, traders speculate on the tendency of a currency to rise or fall within a specified time period. Traders profit on every right speculation of the trend and lose vice versa.
The Forex market is a volatile market that is constantly changing and never totally accurately predicted. This is where the profit or loss is made. If the currency goes up in your favor, you make profit, if it goes down against you, you make loss. The essence of this long explanation is that you need to have the necessary information if you want to start forex trading investment. It is a very technical business. Understanding the Forex market well enough implies availing yourself of serious training in Forex trading! This equips you with the technical know-how required in Forex trading.