PLANET FOREX

The foreign exchange offered for sale under the Retail Dutch Auction System (RDAS) amounted to $300.00 million, the Central Bank of Nigeria (CBN) disclosed over the weekend.
The amount showed an increase of 25 per cent over the level in the preceding week.
Making this known through its weekly bulletin on the foreign exchange market for the week ended January 30, 2009, the apex bank further said "aggregate demand for foreign exchange by authorised dealers rose to US$1,128.39 million, indicating an increase of 172.1 per cent when compared with the level recorded in the week-ended January 23, 2009."
Consequently, it continued, the actual amount of foreign exchange sold by the Central Bank increased from US$205.08 million or 143.7 per cent above the level in the preceding week to US$499.72 million during the week under review.
On the level of participation, it noted that the average number of participating banks increased from 12 to 23. Similarly, the average number of successful banks increased to 21 from 11.
At N145.75 per US dollar, the Bank observed, the average exchange rate of the naira depreciated by 0.2 percent below the level in the preceding week. Similarly, at the Bureau-De-Change (BDC) segment of the market, the naira traded at an average exchange rate of N150.00 per US dollar, showing a depreciation of 1.6 per cent below the level in the previous week.
Consequently, the premium between the official and BDC rates widened from 1.9 per cent in the week-ended January 23, 2009 to 2.9 per cent during the week.
Meanwhile, the apex Bank has requested banks to annualize all their charges, commissions and fees and add them to their base lending rates to arrive at their all-inclusive average lending rates which should be submitted for publication.
Making this known through a circular BSD/DIR/GEN/CIR/02/019 of January 29, 2009, the acting Director of Banking Supervision, Mr. Dan Eke, said "this is to remind all Deposit Money Banks that as agreed at the last Governor's breakfast meeting with Chief Executive Officers of banks, and with effect from January, 2009 the CBN-published monthly deposit and interest rates and charges, will be inclusive of all charges, commissions and fees."
Also, the CBN shall, with effect from January 2009, include the following footnote to the monthly publication of banks' deposit and interest rates and charges. "The Central Bank of Nigeria publishes the average deposit and lending rates paid or charged by deposit money banks in Nigeria for the interest of the general public in order to promote transparency. The lending rates which include all charges, fees and commissions and the deposit rates represent the true rates at which the banks do business.
Failure to comply with the requirements of the circular, according to the apex bank, shall be met by appropriate sanctions.
In another development, the Bank would be holding a seminar on the challenges of ensuring appropriate inflation rate, exchange rate and interest rate regimes in Nigeria.
An invitation letter sent to the media yesterday, the Governor, Professor Chukwuma Soludo, stated "against the backdrop of recent developments in the Nigerian economy fuelled by the global crisis with its attendant effect on the crude oil prices in the international market, and the implication for interest rate, exchange rate and inflation, the Central Bank of Nigeria (CBN) is organizing a one-day seminar on the theme: "The Challenges of Ensuring Appropriate Inflation Rate, Exchange Rate and Interest Rate Regimes in Nigeria".
The seminar which is scheduled for next Thursday would hold at the Main Auditorium, CBN Head Office, Central Business District, Abuja.