Forex

Naira Tumbles to 428 After MPC Decision

Published

8 years ago

September 22, 2016

Naira to Dollar Exchange- Investors King Rate - Investors King

The naira tumbled against the United States dollar to 428 on Wednesday, down from 424 on Tuesday, as persistent dollar shortage continues to weigh on the economy.

The major decline in the local currency against the greenback came a day after the Central Bank of Nigeria’s Monetary Policy Committee retained the benchmark lending rate at 14 per cent.

The MPC had risen from its two-day bi-monthly meeting and left the Monetary Policy Rate unchanged, contrary to calls for its reduction by analysts, stakeholders and some government officials, including the Minister of Finance, Mrs. Kemi Adeosun.

At the interbank official market, the local currency dropped to 310.08 on Wednesday, down from 307.25 on Tuesday, according to data on the FMDQ OTC platform.

Some foreign exchange analysts believe the decline in the value of the naira has nothing to do with the MPC decision to leave the lending rate unchanged.

They said the decline in the value of the naira against the US currency would have been more significant if the MPC had announced a cut in the MPR on Tuesday.

“The developments in the official and parallel markets are a reflection of the usual pressure on the naira. It has nothing to do with the MPC’s decision to leave the interest rate unchanged. We would have seen a major decline in the naira if the committee had announced a rate cut,” a currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, said.

“We can see that the dollar-naira exchange rate has been stable over time now. It is partly because the CBN has been able to meet its futures obligations. It has brought some relative calmness to the market. Again, the demand for forex by players in the oil and gas sector has been taken from the interbank market. This has also brought calmness to that market,” he added.

Meanwhile, the CBN said on Wednesday that interest rate cut alone would not help to pull the economy out of recession amid rising inflation.

The Director, Monetary Policy, CBN, Mr. Moses Tule, said policymakers would need to act together on fiscal, monetary and trade policies to jump-start economic growth.

He told Channels TV, “It’s not sufficient for the monetary policy committee to just meet and say we are reducing interest rates to address a stagflation.

“In a situation where we have negative interest rates, what we have to do is to overcome negative interest rates.”

He said Nigeria’s policy rate had been stuck at six per cent in the past but it didn’t spur credit growth, because the banking system did not respond to the move.

Tule explained that inflation was rising not due to excess money supply, but because of recent reforms, which included a hike in electricity tariffs, fuel price and a currency float that led to a 30 per cent drop in the value of the naira in one day.

“If we were merely in a recession, then we could say we would spend our way out of the recession. For an economy like Nigeria, where there are key structural deficiencies, there’s an urgent need to harmonise the policy mix,” Reuters quoted him as saying.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira

Dollar to Naira Black Market Today, April 19th, 2024

As of April 19th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,100 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

1 day ago

April 19, 2024

Samed Olukoya

As of April 19th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,100 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,020 and sell it at N1,010 on Thursday, April 18th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined slightly when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.

Black Market Dollar to Naira Exchange Rate

Buying Rate: N1,100
Selling Rate: N1,090

Naira

Naira’s Recent Gain Reflects Policy Direction, Says CBN Chief Olayemi Cardoso

Published

2 days ago

April 18, 2024

Samed Olukoya

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has explained that the recent surge in the Naira is a testament to the positive direction of government policies rather than active intervention to defend the currency’s value.

Addressing attendees at the spring meetings of the International Monetary Fund and World Bank in Washington, Governor Cardoso underscored that the CBN’s intention is not to artificially prop up the Naira.

He clarified that the fluctuations observed in the country’s foreign exchange reserves were not aimed at defending the currency but rather aligning with broader economic goals.

Over the past month, the Naira has experienced a notable uptick in value against the dollar, signaling a reversal from previous declines. Data from Bloomberg reveals a 6.4% decrease in liquid reserves since March 18, coinciding with the Naira’s rebound.

Despite this decline, Cardoso pointed out that around $600 million had flowed into the reserves in the past two days, reflecting confidence in the Nigerian market.

Governor Cardoso articulated the CBN’s vision of a market-driven exchange rate system, emphasizing the importance of allowing market forces to determine exchange rates through willing buyers and sellers.

He expressed optimism about a future where the central bank’s intervention in the foreign exchange market would be minimal, except in extraordinary circumstances.

The recent resilience of the Naira follows a period of volatility earlier in the year, marked by a substantial devaluation in January. Since then, the CBN has implemented measures to stabilize the currency, including monetary tightening and initiatives to enhance dollar liquidity.

Cardoso highlighted the transformation in market sentiment, noting that investors now perceive Nigeria’s central bank as committed to stabilizing inflation and fostering economic stability.

As Nigeria continues its journey toward economic recovery and stability, Cardoso’s remarks provide insight into the central bank’s strategy and its impact on the country’s currency dynamics.

Naira

Dollar to Naira Black Market Today, April 18th, 2024

As of April 18th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,020 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

2 days ago

April 18, 2024

Samed Olukoya

As of April 18th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,020 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,050 and sell it at N1,040 on Wednesday, April 17th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate improved when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.