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Forex

Dealers Pick $85.69m Out of $100m Offered by CBN

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Dollar
  • Dealers Pick $85.69m Out of $100m Offered by CBN

The Central Bank of Nigeria (CBN) said on Friday that authorised dealers were only able to pick $85.69 million out of the $100 million it offered at Thursday’s FOREX wholesale auction in the inter-bank market.

Confirming the development last night, the Acting Director of Corporate Communications at the CBN, Isaac Okorafor, said the inability of authorised dealers to pick up the whole amount offered by the apex bank was a pointer that there was enough foreign exchange to meet legitimate forex demands within the system.

While stressing that the CBN had the capacity to sustain the current levels of liquidity in the forex market, Okorafor said the Bank was “committed and was indeed working to achieve convergence in the forex rates between the Interbank and the Bureau de Change (BDC) segment.”

Meanwhile, reports gathered in Abuja and Lagos in the course of the week indicate that the Naira sustained its momentum against major currencies, especially the United States dollar, exchanging at an average of N380 to $1.

The CBN on Thursday offered $100 million to authorised dealers to meet the requests of wholesale customers at the forex auction in the interbank wholesale window.

The CBN spokesman had stated that no intervention was made in the retail window in Thursday’s auction, but stated that the Bank continued its weekly sale of forex to the Bureau de Change (BDC) segment to meet the needs of low-end users.

He said the CBN had observed that quite a good number of dealers were adhering to the forex guidelines. Nevertheless, he said the CBN will continue to monitor the activities of authorised dealers to ensure that no outfit or individual circumvents the laid down forex rules.

He urged all concerned to put the Nigerian economy first, reiterating that the CBN was determined to guarantee the international value of the naira.

In line with assurances by CBN Governor, Mr. Godwin Emefiele that the CBN would continue to intervene in the foreign exchange market, the Bank on Wednesday auctioned the sum of $185.86 million through retail Secondary Market Intervention Sales (SMIS).

The Bank also on Wednesday settled the 10th Over-the-Counter (OTC) foreign exchange (FX) Futures Contract valued at $965.29 million which matured on the FMDQ OTC Securities Exchange. The FMDQ revealed this on its website.

Okorafor while confirming the Wednesday auction sale, disclosed that out of the auctioned amount, only $3.14million was sold as spots, while the sum of $182.72million was sold as forwards.

He further explained that the overall picture of the inter-bank forex market was that of optimism, going by the level of access now being enjoyed by different categories of customers in both the wholesale and retail segments of the market.

The CBN Governor had given a firm assurance of the imminent end of the current recession in 2017, at the end of his meeting with intervention in the forex market.

Emefiele said: “Our reserves stand at above $31bn and that provides us enough of firepower or ammunition to be able to defend the currency, and we will do so with all intensity to ensure that foreign exchange is procured by everybody.”

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

Black Market Dollar to Naira Exchange Rate Today 13th June 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of June 13th, 2024 stood at 1 USD to ₦1,490.

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NAIRA - Investors King

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of June 13th, 2024 stood at 1 USD to ₦1,490.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,480 and sold it at ₦1,470 on Wednesday, June 12th, 2024.

This indicates a slight decline in the Naira exchange rate value when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

  • Buying Rate: ₦1,490
  • Selling Rate: ₦1,480

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

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Naira

Black Market Dollar to Naira Exchange Rate Today 12th June 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of June 12th, 2024 stood at 1 USD to ₦1,480.

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Naira to Dollar Exchange- Investors King Rate - Investors King

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of June 12th, 2024 stood at 1 USD to ₦1,480.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,500 and sold it at ₦1,490 on Thursday, June 6th, 2024.

This indicates an improvement in the Naira exchange rate value when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

  • Buying Rate: ₦1,480
  • Selling Rate: ₦1,470

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

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Forex

Cedi Falls to Record Low Due to Increased Dollar Demand from Importers

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inflation

The Ghanaian cedi has plummeted to a record low of 14.9335 per dollar as the increase in demand for US dollars by companies importing fuel, pharmaceuticals, and other fast-moving consumer goods put pressure on the currency.

This depreciation, observed by the close of trading in Accra, marks the cedi’s lowest level since at least 1994 when Bloomberg began tracking the data.

Since the start of the year, the cedi has declined by 20% against the US dollar, ranking it as the fourth-worst performing currency among approximately 150 tracked globally by Bloomberg, following the Egyptian pound, Nigerian naira, and Lebanese pound.

“Dollar demand from oil importers, the pharmaceuticals industry, and FMCG companies remains strong,” noted Samantha Singh-Jami, Africa Strategist at Rand Merchant Bank. “Although authorities have significantly increased foreign exchange reserves in recent months, there are still constraints on foreign exchange liquidity in the market.”

Ghana’s gross international reserves rose to $6.6 billion in April, the highest in over 19 months, as per data compiled by Bloomberg.

The central bank has been strategically managing these reserves to ensure sufficient market supply, including directly addressing some companies’ foreign exchange needs to alleviate the pressure on commercial banks.

This increase in reserves follows Ghana’s decision to halt servicing most of its external debt since December 2022.

The move was part of a debt restructuring effort to qualify for an International Monetary Fund (IMF) program. Disbursements from the $3 billion IMF package and inflows from other multilateral and bilateral sources have bolstered the reserves.

However, the cedi’s decline is also attributed to a significant drop in cocoa export revenue, which has diminished foreign exchange supply. Revenue from cocoa shipments fell by 49% to $599 million from January through April.

The country’s cocoa output for the 2023-24 season is projected to be between 422,500 and 425,000 tons, which is only half of the initial estimate.

“The weakening of the cedi seems to reflect foreign exchange flow mismatches,” said Samir Gadio, head of Africa Strategy at Standard Chartered Bank. “Foreign exchange demand recovered this year, though it has remained broadly constant in recent months, and continues to exceed supply.”

The combination of high demand for dollars by importers and reduced foreign exchange inflows has created a challenging environment for the cedi.

Despite efforts by the central bank to manage the situation, the currency continues to struggle under the weight of these economic pressures.

Economic Outlook

The Ghanaian government and central bank face a tough task in stabilizing the cedi amidst these challenges.

Ensuring adequate foreign exchange liquidity while addressing the structural issues in the economy, such as reliance on imports and fluctuating export revenues, will be crucial in reversing the cedi’s downward trend.

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