The Central Bank of Nigeria (CBN) has initiated a move to bolster the forex market by issuing a circular to Bureau De Change operators (BDCs), informing them of the sale of $10,000 to each BDC at a rate of N1,251/$1.

According to the circular, each BDC is instructed to sell the allocated dollars to eligible customers at a rate not exceeding 1.5% above the purchase price. This translates to a maximum selling rate of N1,269/$1, assuming that BDCs adhere to the prescribed margin.

“We refer to our letter to you referenced TED/DIR/CON/GOM/001/071 in respect of the above subject wherein the CB approved a second tranche of sale of FX to eligible BDCs.

“We write to inform you of the sale of $10,000 to each BDC at the rate of N1,251/$1. The BDCs are to sell to eligible end users at a spread of NOT MORE THAN 1.5 per cent above the purchase price,” the circular said.

The resumption of dollar sales to BDC operators marks a significant development after a prolonged suspension by the central bank in 2021. This suspension was lifted earlier in the year following the revocation of licenses of over 4173 BDC operators in February.

Financial analysts interpret the CBN’s selling of forex to BDCs at N1,251/$1 as a strategy to prevent traders from locking in large transactions above the stipulated rate. Kalu Aja, a financial analyst, suggests that while the Naira appears to float, the CBN intervenes to strengthen the currency by selling its forex reserves to BDCs at a rate below the willing buyer/willing seller price. He added that it is the reason behind the recent naira’s gain in the FX market.

The naira experienced further appreciation at the parallel segment of the foreign exchange market, with currency traders in Lagos quoting the Naira at N1,440 to the greenback. This represents an appreciation of N30 or 2.04% from its previous rate of N1,470/$ on March 22.

At the FMDQ Exchange, which oversees official forex trading in Nigeria, the local currency rose by 1.64% or N23.41 to N1,408.08/$ on Monday, compared to N1,431.49/$ on March 22.

Aminu Gwadabe, president of the Association of Bureau De Change Operators of Nigeria (ABCON), said the CBN needs to adopt a paradigm shift in sourcing foreign exchange for the economy. Gwadabe emphasized the importance of resolving valid forex backlogs to enhance market stability and attract international investments.

“In summary, that is my observation: the increasing resilience, capacity, and arsenal of the Central Bank of Nigeria to defend our local currency through several measures,” Gwadabe said.

“My advice is for them to continue widening and undergo a paradigm shift in sourcing foreign exchange for the economy.”

However, economists have raised questions about the CBN’s selective approach to selling forex only to BDCs. They question why the CBN doesn’t extend this opportunity to all members of the Manufacturers Association of Nigeria (MAN) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

“I would prefer the CBN subsidize exporters If you export and remit back to CBN you buy your dollars at $1:N1251,” Aja noted.

China has introduced new guidelines aimed at gradually replacing US processors and software with domestic alternatives in its government computers and servers.

The rules, which were unveiled on December 26 and are now being enforced, signal a significant shift away from reliance on overseas technologies.

According to the Financial Times, the guidelines mandate that government agencies above the township level include criteria requiring “safe and reliable” processors and operating systems when making purchases. This means that CPUs from American companies like Intel and AMD, as well as Microsoft Windows and foreign-made database software, will be replaced with homegrown options.

The China Information Technology Security Evaluation Center has published a list of these “safe and reliable” products, which predominantly feature CPUs from Chinese companies such as Huawei and Phytium. These CPUs cover a range of architectures, including x86, Arm, and domestic designs.

China’s move to prioritize domestic products over foreign ones is part of its broader strategy outlined in the Made in China 2025 policy goals. This initiative aims to reduce the country’s reputation as the world’s factory and establish it as a global technology powerhouse in its own right.

The impact of these restrictions on US tech giants is significant. China represented Intel’s largest market last year, accounting for 27% of the company’s $54 billion in sales. Similarly, China generated $23 billion for AMD, representing 15% of its sales. While the restrictions will have less of an impact on Microsoft, which relies on China for about 1.5% of its revenues, they mark a notable shift in China’s procurement policies.

This move comes amid escalating tensions between Beijing and Washington, with the American government imposing restrictions on China’s ability to produce advanced chips. The ban on exporting advanced AI products from Nvidia to China is another recent development, prompting the creation of China-specific alternatives by the company.

In a parallel move, the US is also working to reduce its dependence on China and Taiwan for semiconductors through initiatives like the CHIPS Act. This legislation provides $52 billion in subsidies for companies to relocate manufacturing back to the US. Intel, for instance, was recently awarded the CHIPS Act’s largest sum to date: $8.5 billion in funding, along with $11 billion in loans and a 25% investment tax credit.

Apple and Huawei, major victims of the tech rivalry

China’s efforts to remove foreign CPUs and software from government buildings extend beyond American companies. In September, Apple’s shares experienced a 9% decline following news that China was expanding its ban on the use of iPhones in certain government offices, underscoring the broader trend of prioritizing domestic technology solutions.

The Cupertino giant has seen a significant decline in sales within China, a market that contributed $21 billion to Apple’s revenues in the fourth quarter, constituting 17 percent of its total sales. This figure represents a notable 13 percent drop compared to the previous year. Research firm Counterpoint reports that iPhone sales in the first six weeks of the current year also experienced a substantial 24 percent decrease compared to the same period last year.

Both Apple and Huawei have found themselves inadvertently caught in the crossfire of the US-China tech rivalry, impacting their growth in their markets. Apple’s challenges in China have been further compounded by various factors, including the Chinese government’s concerted effort to reduce the use of iPhones among state employees and the resurgence of Huawei as a domestic competitor. Despite facing US sanctions limiting its access primarily to the Chinese market, Huawei managed to launch a domestically developed smartphone capable of nearly 5G speeds, posing significant competition to Apple.

In light of these challenges, Tim Cook, Apple’s CEO, has emphasized the importance of China to the company’s operations.

“There’s no supply chain in the world that’s more critical to us than China,” Cook was quoted by China’s state-owned Global Times as saying.

Apple, which currently operates 57 stores in the greater China region, encompassing Hong Kong, Macau, and Taiwan, is seeking to expand its presence in the Chinese by upgrading its research center in Shanghai and establishing a new laboratory in Shenzhen.

Poor Nollywood, we have better movies: “Meanwhile, in a surprising turn of events, one of the detained Binance executives, Nadeem Anjarwalla, reportedly escaped from custody. Anjarwalla, 38, escaped on Friday, 22 March, from the Abuja guest house where he and his colleague were detained after guards on duty led him to a nearby mosque for prayers in the spirit of the ongoing Ramadan fast.

“The Briton, who also has Kenyan citizenship, is believed to have flown out of Abuja using a Middle Eastern airline, raising questions about security protocols and oversight.”

#unbelievable! How did this guy get into a plane? Did they check his arrival passport? Did they check his name? How did he buy a ticket?  People, buy your white flag as Nigeria has no security!

Nigeria Sues Binance Over Tax Evasion As A Binance Executive Escapes from Custody