The Nigerian Naira exchange rate to the United States Dollar remained at a record low ahead of the Central Bank of Nigeria (CBN) monetary policy decision scheduled for today and tomorrow.

Forex traders bought the Dollar at N1,665 at the parallel market, popularly known, as the black market and sold at N1,675. The British Pound Sterling (GBP) was acquired at N2,220 and sold at N2,240 as shown in the table below.

Naira (NGN) to Dollar (USD) Black Market Exchange Rate Today

At the official forex segment, the local currency was stronger as it was exchanged at N1,587.34 to a United States Dollar while the GBP was traded at N2,066.56 and N2,067.86, respectively.

CBN Exchange Rate Today

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has revealed that the country’s foreign reserves have seen a net inflow of approximately $2.35 billion in the first seven months of 2024.

The minister made this known in Lagos State during the Corporate Customers Forum on Thursday.

Edun attributed the gain in reserves and currency stability to the government’s proactive economic policies.

Furthermore, the minister highlighted some areas that require attention, including Nigeria’s tax-to-GDP ratio, which remains low at around 10%, and the revenue-to-GDP ratio, which stands at 15%.

Edun called for increased spending on infrastructure and social safety nets to address these figures.

His words: “We have relative currency stability. And, of course, the all-important margin of the rates. We’ve seen a gradual elimination of multiple exchange rates.

“We also have foreign exchange liquidity. The gross reserves are up. There has been a net inflow in the first seven months of this year of about $2.35 billion every month.

Minister Edun continued: “On the fiscal side as well, government revenues are growing, and the key to government revenue is not so much that government has revenue to compete with the private sector.

“It’s the fundamentals, the social spending, and the key infrastructure spending. The social safety net spending. Historically, our figures are low. Our tax-to-GDP ratio is as low as 10%. Our revenue-to-GDP ratio is also around 15%.”

Nigeria’s external reserves, also known as foreign currency reserves, jumped by $490 million in one week following the successful issuance of domestic dollar bonds by the Debt Management Office (DMO).

Data from the Central Bank of Nigeria (CBN) showed that the external reserves grew to $36.73 billion as of September 10, 2024, from $36.24 billion recorded on September 2, 2024.

On August 19, 2024 the Nigerian Government issued $500 million, the first series of the $2 billion domestic US dollar bond to investors, to stabilise the economy.

During the hybrid roadshow of the domestic US dollar bond in Lagos on August 15, 2024, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, said the move would enhance foreign currency reserves.

The naira on Wednesday recorded 5.06 percent gain on the official foreign exchange (FX) market following an increase in dollar supply to $221.24 million in one trading day.

After trading on Wednesday, the naira appreciated by 5.06 percent as the dollar was quoted at N1,558.75 compared to N1,637.59 quoted on Tuesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to data from the FMDQ Securities Exchange Limited.

In what is considered a landmark transaction, the Federal Government raised over $900 million from investors.

The bond, which was over 180 percent subscribed, marks a crucial step in broadening Nigeria’s funding avenues amid global economic headwinds. It reflects growing investor confidence in the nation’s economic outlook.

According to him, the move aims to stabilise the exchange rate, manage inflation, and ultimately reduce interest rates.

We are very pleased to announce the successful launch of this crucial domestic issuance of Federal Government U.S. dollar bonds to the investing public and other stakeholders. Under President Bola Ahmed Tinubu, the macroeconomic reforms have made bold and courageous strides to stabilize the economy while fostering innovation, creativity, and imagination among all economic actors, including those in the financial markets,” Edun stated.

He added, “This historic issuance will provide essential foreign exchange liquidity and boost reserves, which will help stabilise the exchange rate, manage inflation, and eventually lower interest rates. It will also lay the foundation for increased investment by both domestic and foreign direct investors.”