Forex

CBN’s Forex Market Intervention Improving Business Climate —Adenuga

Published

7 years ago

July 19, 2017

CBN’s Forex Market Intervention Improving Business Climate

The continued intervention of the Central Bank of Nigeria in the nation’s foreign exchange market is gradually enhancing the country’s business climate, the Managing Director, Premier Standard Industrial Limited, Mr. Gbolahan Adenuga, has said.

Adenuga noted that the greatest challenge that faced the business environment last year and the earlier part of this year was forex scarcity, adding that the situation almost crippled some firms.

He observed that the creation of the Investors and Exporters FX Window by the CBN had enhanced the inflow of forex into the country.

This, he said, had improved the country’s business climate.

The Premier Standard MD, however, urged the central bank to do more, describing the injection of dollars into the market as a good development.

Adenuga said, “The situation is abating at the moment; it’s no longer scarce as it was. This year is a tale of two halves. We’ve had the first quarter which was very tough, the spillover of 2016 where there was scarcity of dollar from the Central Bank of Nigeria.

“But since the new policy was introduced in April, where the CBN opened the Investors and Exporters window, things seem to have improved a lot with the inflow of forex. And of course, the CBN has been very active releasing forex into the market on weekly basis.”

According to Adenuga, the government must not pay lip service to the issue of diversifying the economy because there is a need to develop alternative sources of forex earnings for the country.

Premier Standard, which was established over 20 years ago, is an importer of animal feeds.

The CEO said with banks offering between 15 and 30 days forward in accessing forex, there had been a marked improvement compared with 2016.

He however, said the importers and business organisations would like to see a situation where it could even be lesser than 15 days.

The Premier Standard boss also urged the Federal Government to take the issue of economic diversification, particularly agriculture and mining very seriously in the light of economic realities.

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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 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

30 mins 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.

Black Market Dollar to Naira Exchange Rate

Buying Rate: N1,020
Selling Rate: N1,010

Naira

Naira’s Upsurge Strains Nigeria’s Foreign-Exchange Reserves

Published

23 hours ago

April 17, 2024

Samed Olukoya

As the Nigerian Naira continued to rebound from its record low against its global counterparts, the nation’s foreign exchange reserves has been on the decline, according to the data published by the Central Bank of Nigeria (CBN) on its website.

CBN data showed liquid reserves have plummeted by 5.6% since March 18 to $31.7 billion as of April 12, the largest decline recorded over a similar period since April 2020.

The recent surge in the Naira follows a series of measures implemented by the Central Bank to liberalize the currency market and allow for a more flexible exchange rate system.

These measures included devaluing the Naira by 43% in January and implementing strategies to attract capital inflows while clearing the backlog of pent-up dollar demand.

Charles Robertson, the head of macro strategy at FIM Partners, acknowledged the Central Bank’s efforts to restore the Naira to a realistic exchange rate, suggesting that it aims to stimulate investment in the local currency and enhance liquidity in the foreign exchange market.

Despite the rapid depletion of foreign-exchange reserves, Nigeria still maintains a significant cushion, bolstered by a rally in oil prices and inflows from multilateral loans.

Gross reserves of approximately $32.6 billion provide coverage for about six months’ worth of imports, according to the International Monetary Fund.

The Central Bank’s disclosure last month that it had cleared a backlog of overdue dollar purchase agreements, estimated at $7 billion since the beginning of the year, indicates progress in addressing longstanding currency challenges.

However, uncertainties remain regarding the extent of dollar debt retained by the Central Bank as revealed by its financial statements late last year.

Furthermore, the decline in foreign-exchange reserves persists despite a surge in inflows into Nigeria’s capital markets, driven by interest rate hikes and increased attractiveness of local debt.

Foreign portfolio inflows exceeded $1 billion in February alone, contributing to a total of at least $2.3 billion received so far this year, according to central bank data.

Analysts remain cautiously optimistic about the trajectory of Nigeria’s foreign-exchange reserves, anticipating stabilization or potential growth fueled by anticipated inflows from Afreximbank, the World Bank, and potential eurobond issuance.

Also, the resurgence of oil prices and the expected return of remittances through official channels offer prospects for replenishing reserves in the near future.

Naira

Dollar to Naira Black Market Today, April 17th, 2024

As of April 17th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,050 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

1 day ago

April 17, 2024

Samed Olukoya

As of April 17th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,050 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 N1,070 and sell it at N1,060 on Tuesday, April 16th, 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.