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US Dollar to Naira Bank Rate Today – See Investorsking Daily Currency calculator

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Naira Dollar Exchange Rate

US Dollar to Naira Bank Rate Today and Details of Macro Fundamental Challenges Hurting the Naira

US dollar to naira bank rate today remained largely unchanged at around N386 to a US dollar. However, currency traders can check the daily US dollars to the Naira exchange rate using our currency calculator.

On the black market, US Dollar to Naira exchange rate stood at N468 on Wednesday morning, a decline of N1 from the N467 it traded on Tuesday. Suggesting that economic uncertainties continue to dictate Naira value despite central bank efforts at supporting the local currency.

The apex bank had lowered the monetary policy rate to stimulate growth and broaden economic productivity just a few weeks after resuming forex sales to the bureau de change operators across the nation.

Also, the federal government announced a survival fund to support micro small and medium businesses impacted by COVID-19. All these are yet to reflect on the economy or the naira value as weak sentiment regarding project recession in the third quarter continued to outweigh any positivity.

While interest rate reduction had bolstered the attractiveness of the Nigerian Stock Exchange in the last one week, it is yet to reflect on Naira value as forex scarcity has impeded manufacturers and other import dependent businesses from access the US dollar for their raw materials.

Even with the US Dollar to Naira bank rate trading better when compared to the black market rate, it is generally inaccessible as banks have capped the foreign spending limit to $100 per month, meaning small import businesses that depend on Dollar to Naira bank rate to operate will struggle henceforth.

These numerous macro fundamentals issues amid a 27.1 percent unemployment rate and over 13 percent inflation are affecting investors’ confidence in Africa’s largest economy.

The central bank US Dollar to Naira exchange rate remained N379 but available at N380 to banks that also added operating cost and spread to between N383 and N386 depending on the bank you are dealing with.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Forex

Nigeria’s Annual Remittance Inflow Estimated at $24 Billion -CBN

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The Central Bank of Nigeria (CBN) has started focusing on how to better harness Nigeria’s huge diaspora remittances as seen in recent foreign exchange policy geared towards stimulating growth and fast-tracking economic recovery with foreign inflows.

On Thursday, the apex bank said it adjusted forex policy to service the economy with diaspora remittances and curb the excesses of few unscrupulous forex dealers.

In an effort to boost remittance inflows and foster an environment that would enable faster, cheaper, and more convenient flow of remittances back to Nigeria, the Central Bank of Nigeria, on November 30, 2020, announced a new policy initiative, which would help to support these objectives,” Godwin Emefiele stated.

Speaking further, he said, “Given the estimated annual remittance inflow of close to $24bn, which could help in improving our balance of payment position, reduce our dependence on external borrowing and mitigate the impact of COVID-19 on foreign exchange inflows into the country, the CBN sought to find ways to support improved remittance inflows into the country through official channels.

Based on this premise, we analyzed data on IMTO inflows into the country over the past year, and through our investigations discovered that some IMTOs, rather than compete on improving transaction volumes and create more efficient ways for Nigerians in the Diaspora to remit funds, resorted to engaging in arbitrage arrangements on the naira dollar exchange rate, which to a large extent resulted in a significant drop in flows into the country. It also encouraged the use of unsafe unofficial channels, which also supported diversion of remittance flows meant for Nigeria, thereby undermining our Foreign Exchange management framework.

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CBN Forced Speculators, Hoarders to Sell Dollar Lower

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The Central Bank of Nigeria’s new forex policy has forced many speculators and hoarders at the Nigerian parallel market popularly known as the black market to start bringing out their forex at an even lower price.

The Naira to United States Dollar exchange rate moderated from N500 to N470 earlier this morning across the nation’s black market.

Similarly, the local currency exchanged at N620 to a British Pound, an improvement from N640 it was sold on December 1, 2020.

The story is not different against the European common currency as it gained slightly to N570, up from N580 it sold on Tuesday.

The improvements recorded against global counterparts was after the CBN directed that henceforth recipients of foreign remittance can now receive such fund in foreign currency (US Dollar) in cash or through an ordinary domiciliary account.

This means the apex bank planned to inject $20 billion estimated diaspora remittances per year into the real sector of the economy to force hoarders to sell their dollars or lose substantially and also to curb forex dealers in the habit of buying forex directly from the recipient’s domiciliary account because of old CBN policy that restricted them from withdrawing foreign currency in cash.

With this old policy out of the way, recipients of foreign remittances can now withdraw foreign currency and exchange it at any of the registered bureau de change operators across the nation at N392 to a US dollar. The bureau de change rate set by the central bank.

Investors King expects the policy to fast track the recovery process and enhance economic activity across the board, especially at a time when importers are looking for forex to bring in goods in order to meet the usual December high demand.

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Naira Exchange Rate Improves as CBN Plans to Flood Economy With $20 Billion Diaspora Remittances

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The Naira to US Dollar exchange rate improved by N10 to N490 on Tuesday following the Central Bank of Nigeria’s new directive that allows recipients of diaspora remittances to receive their fund in foreign currency (US Dollar) or via their ordinary domiciliary account.

The move was after the apex bank blamed the parallel market for the wide foreign exchange rate and cautioned analysts for using speculative rates as the real Naira/US dollar rate.

Therefore, the apex bank decided to inject $20 billion annual diaspora remittances into the real sector of the economy and hurt the activities of unscrupulous individuals at the parallel market.

Investors King expects this to gradually moderate the nation’s foreign exchange rate against global counterparts, deepen business activities and fast track economic recovery.

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