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Investors Transact $1.7b at I&E Window

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us dollar
  • Investors Transact $1.7b at I&E Window

Transactions at the nation’s autonomous foreign exchange market- the Investors and Exporters (I&E) Window, hit a record $1.7 billion in one week, despite relative losses by the local unit across segments.

The huge transactions, which also indicated a resurging confidence in the forex market, came amid the take off of the three-time weekly auctions for the Bureau De Change (BDC) operators, mandated by the Central Bank of Nigeria (CBN).Already, CBN’s data on Purchasing Managers’ Index (PMI) for May 2018, showed sustained expansion in both the manufacturing and non-manufacturing sectors for the 14th and 13th consecutive months respectively, riding on increasing forex.

This persistent improvement was attributed largely to the positives that have translated into improved access to forex by businesses, particularly since the launch of Investors’ and Exporters (I&E) FX window in April 2017.The manufacturing PMI expanded to 56.5 points, growing at a slower pace compared to 56.9 points recorded in April 2018, due to a slower increase in two components of the index – Inventories (58.7 points) and new orders (54.9 points).

Similarly, the non-manufacturing PMI, expanded to 57.3 points, 0.2 points lower than 57.5 points recorded in April 2018, with a slower growth rate in three components of the index – Business activity (58.7 points), New orders (55.9 points) and Inventories (59.2 points).The I&E Window had opened the week’s trading with the naira flat at N361.57/$ and by midweek, it depreciated by 45 kobo to N362.02/$, but reversed the losses with N1.05 and 12 kobo gians on Thursday and Friday respectively, to close the week at N360.85/$.

Subsequently, activity level in the I & E window strengthened as total turnover on Thursday rose by 92.8% to $1.7 billion against $883.9 million recorded the previous week.Also, the CBN spot rate weakened at the start of the week, depreciating five kobo to N305.95/$ against N305.90/$ recorded in the previous week and remained unchanged till Thursday.

At the close of transactions on Friday, the CBN spot rate further declined by five kobo to N306/$, while the parallel market, which opened the week at N364/$, depreciating by N1 against the previous week’s record, regained the loss as it ended the week at N363/$.

Meanwhile, the nation’s stock of external reserves remained at $47.6 billion, despite sustained interventions, which volume notched up with the new mandate to BDCs to increase the purchase of foreign exchange thrice a week.The apex bank, last week, auctioned a total of $541.41 million to the forex market in two interventions that helped the local unit to regain lost weight against other major currencies.

But in preparation for the resumption of trading activities this week, CBN ended the week with the second intervention worth $331.41 million to players in different sectors of the forex market.CBN’s Bank’s Acting Director, Corporate Communications Department, Isaac Okorafor, said companies in the agricultural, airlines, petroleum products and raw materials and machinery sectors were the beneficiaries of the intervention.He explained that the continued interventions in the forex market was to guard against illiquidity and checkmate actions of speculators that could mount pressure on the country’s reserves.

Reiterating the assurances of the CBN Governor, Godwin Emefiele, he said the bank was buoyant enough to meet the foreign exchange requests of various customers cut across the different segments of the market. He therefore charged every customer requiring foreign exchange to approach their respective banks with relevant documents to make formal requests, stressing that the authorized dealers had enough supply to meet every legitimate request.

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

Forex

Nigeria’s FX Reserves Dwindle by $1.6 Billion Amid Unification Efforts, Straining Naira

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Naira Exchange Rates - Investors King

The Central Bank of Nigeria’s directive to remove the rate cap on the naira at the official Investors and Exporters’ Window has triggered a significant decline in the country’s foreign exchange reserves.

From June 14 to December 1, 2023, the reserves have plunged by $1.6 billion from $34.62 billion to $32.97 billion.

The decision aimed at fostering a free float of the national currency against global currencies has faced challenges, leading to a weakened naira by more than 40%.

The limited capacity to earn foreign exchange from both non-oil and oil exports, coupled with increasing FX demand, has contributed to the decline, raising concerns about the nation’s economic stability.

Economists, including Obadan Mike, a member of the Monetary Policy Committee, highlight the persistent pressure on foreign exchange demand amidst weak accretion to external reserves.

The fundamental issues include low productivity, inadequate export earnings, and limited foreign capital inflows.

The Economist Intelligence Unit’s Africa Outlook report questions Nigeria’s ability to support its exchange rate unification policy due to insufficient FX reserves.

It predicts ongoing instability, periodic devaluations, and foreign investors’ unease, indicating the need for robust measures.

While JP Morgan estimates Nigeria’s net FX reserves at $3.7 billion, the Central Bank Governor, Mr. Olayemi Cardoso, remains optimistic.

He anticipates positive economic impacts in the medium-term, driven by policies such as the removal of the petrol subsidy and the adoption of a floating exchange rate.

However, challenges persist, necessitating a careful balancing act to secure the nation’s financial stability.

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Forex

Black Market Dollar to Naira Exchange Rate Today 6th December 2023

What is the Dollar to Naira exchange rate at the parallel market, known as the black market (Abokifx) today? As of December 6th, 2023, the dollar to naira exchange rate is 1 USD to 1165 NGN at the black market.

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New Naira notes

What is the Dollar to Naira exchange rate at the parallel market, known as the black market (Abokifx) today? As of December 6th, 2023, the dollar to naira exchange rate is 1 USD to 1165 NGN at the black market.

This means that for every one US dollar, you can exchange it for ₦1165, Investors King reports.

This digital business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.

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

This rate is subject to change depending on a variety of factors including global economic trends, political developments, and market fluctuations. However, you can buy and sell 1 USD at ₦1165 and ₦1160 as of the time of writing today.

What is the current exchange rate of the dollar to naira in the black market today?

According to Investors King, as of the time this report was filed, a dollar can be purchased at the Lagos parallel market (black market) for ₦1165 and sold for ₦1160.

Exchange Rate of Dollar To Naira in Black Market Today?

Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Selling Rate 1160
Buying Rate 1165

Central Bank of Nigeria (CBN) Naira Exchange Rates for Banks

Investors King understands that although the dollar to naira opened at N1165 per $1 in the parallel market today, the Central Bank of Nigeria (CBN) does not acknowledge the parallel market, also referred to as the black market. The CBN has instructed individuals in need of forex to approach their bank as the I&E window is the sole recognized exchange.

On Wednesday, December 6th, 2023, individuals in the black market purchased one US dollar for N1165 and sold it for N1160. This shows that the value of the Naira improved when compared to Tuesday, December 5th, 2023 when the local currency was exchanged at N1170 to a Dollar and a Dollar was purchased at N1160.

To stay informed about the dollar to naira exchange rate, there are several reliable sources that you can turn to. Here are some tips for staying up-to-date:

  • Check the Central Bank of Nigeria’s website: The CBN is responsible for regulating the country’s monetary policy and is a reliable source for the latest exchange rates. You can check their website regularly for updates.
  • Follow financial news outlets: Financial news outlets such as Investors King, Bloomberg, Reuters, and CNBC provide regular updates on the global currency markets, including the dollar to naira exchange rate.
  • Use online currency converters: There are a number of online currency converters that allow you to quickly and easily check the exchange rate between the dollar and the naira.
  • Follow social media accounts of financial experts: Following social media accounts of financial experts such as analysts, economists, and financial advisors can give you valuable insights into the latest trends in the currency markets.

By staying informed about the dollar-to-naira exchange rate, you can make informed decisions when buying or selling foreign currencies. Whether you are a business owner looking to trade in foreign currencies or an individual looking to invest in the currency markets, knowledge of the latest exchange rates is key to success. Keep these tips in mind and stay informed about the latest trends in the global currency markets.

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Business

How Much is Dollar to Naira Today December 5th 2023 in Black Market

What is the Dollar to Naira exchange rate at the parallel market, known as the black market (Abokifx) today? As of December 5th, 2023, the dollar to naira exchange rate is 1 USD to 1170 NGN at the black market.

Published

on

New Naira Notes

What is the Dollar to Naira exchange rate at the parallel market, known as the black market (Abokifx) today? As of December 5th, 2023, the dollar to naira exchange rate is 1 USD to 1170 NGN at the black market.

This means that for every one US dollar, you can exchange it for ₦1170, Investors King reports.

This digital business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.

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

This rate is subject to change depending on a variety of factors including global economic trends, political developments, and market fluctuations. However, you can buy and sell 1 USD at ₦1170 and ₦1165 as of the time of writing today.

What is the current exchange rate of the dollar to naira in the black market today?

According to Investors King, as of the time this report was filed, a dollar can be purchased at the Lagos parallel market (black market) for ₦1170 and sold for ₦1165.

Exchange Rate of Dollar To Naira in Black Market Today?

Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Selling Rate 1165
Buying Rate 1170

Central Bank of Nigeria (CBN) Naira Exchange Rates for Banks

Investors King understands that although the dollar to naira opened at N1170 per $1 in the parallel market today, the Central Bank of Nigeria (CBN) does not acknowledge the parallel market, also referred to as the black market. The CBN has instructed individuals in need of forex to approach their bank as the I&E window is the sole recognized exchange.

On Tuesday, December 5th, 2023, individuals in the black market purchased one US dollar for N1170 and sold it for N1165. This shows that the value of the Naira declined when compared to Friday, December 1st, 2023 when the local currency was exchanged at N1155 to a Dollar and a Dollar was purchased at N1150.

To stay informed about the dollar to naira exchange rate, there are several reliable sources that you can turn to. Here are some tips for staying up-to-date:

  • Check the Central Bank of Nigeria’s website: The CBN is responsible for regulating the country’s monetary policy and is a reliable source for the latest exchange rates. You can check their website regularly for updates.
  • Follow financial news outlets: Financial news outlets such as Investors King, Bloomberg, Reuters, and CNBC provide regular updates on the global currency markets, including the dollar to naira exchange rate.
  • Use online currency converters: There are a number of online currency converters that allow you to quickly and easily check the exchange rate between the dollar and the naira.
  • Follow social media accounts of financial experts: Following social media accounts of financial experts such as analysts, economists, and financial advisors can give you valuable insights into the latest trends in the currency markets.

By staying informed about the dollar-to-naira exchange rate, you can make informed decisions when buying or selling foreign currencies. Whether you are a business owner looking to trade in foreign currencies or an individual looking to invest in the currency markets, knowledge of the latest exchange rates is key to success. Keep these tips in mind and stay informed about the latest trends in the global currency markets.

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