Forex

CBN Disburses $240 Million Forex to BDCs, Others Today

Published

7 years ago

April 4, 2017

CBN Disburses $240 Million Forex to BDCs, Others Today

The Central Bank of Nigeria (CBN) resumes this week’s foreign exchange market intervention today with a disbursement of $240 million.

Of the sum, $90 million is for invisibles – business/personal travel allowances, medical, school fees, among others, while $150 million goes to interbank wholesale auction window targeted at real sector operators.

The move, meant to stabilise the interbank market and weaken speculators by strengthening the naira at the parallel market, would also help to return all rates to near convergence.

CBN’s Acting Director of Corporate Communications, Isaac Okorafor, who confirmed the development, added that the apex bank had adjusted the planned sale of dollars to bureaux de change (BDCs).

According to him, the bank now offers dollar auction to the BDCs only on Tuesdays to reduce logistical difficulties, while they will, from today, be offered $10,000 each for resale to end users.

To ease access to customers, he confirmed that the CBN had directed banks to make cash available to desirous foreign exchange customers at over-the-counter transactions.

Warning commercial banks and other dealers against sabotaging the efforts, he advised customers to report infractions to the CBN through 07002255226 or email to cpd@cbn.gov.ng, with the name and branch of the bank.

The financial institutions had mid last week refused to sell dollars to some customers seeking to buy forex for business/personal travel allowances, medical and school fees, citing insufficient allocation. But the apex bank described the claim as false.

The CBN has in the recent months made offers and releases to the inter-bank foreign exchange market in its bid to sustain forex rule supply to different categories of users.

Meanwhile, the South Africa-based Renaissance Capital has insisted that the resultant convergence of the interbank and parallel rates, coming after six weeks of foreign exchange injections, was a precursor to a devaluation of the naira with the NGN350-390/$1.

“CBN’s fixation on a stable foreign exchange rate implies it will need to sustain its interventions to contain the parallel market premium. We estimate reserves will begin to fall when the CBN’s quarterly injections exceed $3.7 billion.

“We consider this ‘convergence optics’ a signal that a naira devaluation is in the offing. In reducing the parallel market premium (N380/$ vs. N520/$), we believe the CBN is hoping the market is now less inclined to think the naira should be at NGN500/$.

“Nigeria’s oil receipts – the country’s biggest source of foreign exchange – by far, will be a key determinant of how much the CBN can inject into the market, while keeping reserves flat,” the sub-Saharan Africa Economist at RenCap, Yvonne Mhango, said.

However, based on assumptions of oil price projection of $55 per barrel for 2017 and the current level of reserves, the apex bank is reiterating its readiness to sustain efforts at stabilising the local currency and prices nationwide.

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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

10 hours 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

1 day 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.