Naira

Devaluation: Naira Declines to N410.25 Against United States Dollar on I&E FX Window

Published

3 years ago

January 1, 2021

Another Naira Devaluation as Naira Declines to N410.25 Against United States Dollar on I&E FX Window

Nigerian Naira declined against the United States Dollar on the Importers and Exporters (I&E) Foreign Exchange Window on Thursday in another suspected devaluation move by the Central Bank of Nigeria given the nature of the exchange platform.

The I&E FX Window is the only foreign exchange trading segment that allows investors, exporters and end-users to trade forex at a market-determined exchange rate.

However, because the Central Bank of Nigeria (CBN) intervenes at the window intermittently to manage the foreign exchange rates, the exchange rate at the window is largely regulated and pegged at a certain range against what is obtained at the parallel market or black market.

Therefore, the sudden plunged in Naira value from N392.88 against the United States Dollar on Thursday to as low as N412.05 before moderating to N410.25 per US$ raised eyebrows given the Central Bank of Nigeria’s extensive involvement.

Experts are already predicting the fourth devaluation in the last one year and the very first in the new year factoring in CBN modus operandi, economic recession, falling foreign revenue, weak fiscal buffer and generally low economic productivity.

Also, this may not be unconnected with the rising capital outflow from the nation’s foreign exchange market, especially given the huge profit realised from the Nigerian Stock Exchange in 2020.

A recent report from the Exchange revealed that foreign investors withdrew N433.15 billion between January and November 2020 while only investing (foreign inflow) N226.13 billion during the same period. Meaning, CBN may have devalued the Naira at the I&E window to curb January’s expected capital outflow by foreign investors that profited big from the nation’s over 50 percent gain in 2020. The highest globally.

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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

CBN Sells Fresh Dollar to BDCs at N1,021/$

Published

1 hour ago

April 23, 2024

Samed Olukoya

The Central Bank of Nigeria (CBN) has once again initiated direct sales of dollars to licensed Bureau De Change (BDC) operators across the country.

The latest circular from the apex bank announces the sale of $10,000 to each BDC at a rate of N1,021 per dollar.

This is the second round of such sales this month and the fourth in the current year.

The directive mandates BDCs to sell the allocated dollars to eligible end-users at a spread not exceeding 1.5 percent above the purchase price, translating to a maximum selling price of N1,036.15 per dollar.

Addressing concerns about adherence to guidelines, the CBN said it is important for BDC operators to work within the prescribed framework.

The intervention targets retail-end transactions, including travel allowances, tuition fees, and medical payments, among others.

BDCs are instructed to commence payment of the Naira deposit to designated CBN accounts and submit necessary documentation for FX disbursement at respective CBN branches.

This latest initiative follows previous interventions by the CBN, including the sale of $10,000 to BDCs earlier this month at N1,101 per dollar. Such measures aim to shore up the Naira’s value and ensure stability in the forex market amid economic uncertainties.

The CBN’s sustained efforts to provide adequate forex liquidity underscore its commitment to safeguarding the country’s currency and facilitating seamless foreign exchange transactions for businesses and individuals alike.

Naira

Dollar to Naira Black Market Today, April 23rd, 2024

Published

9 hours ago

April 23, 2024

Samed Olukoya

As of April 23rd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,250 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 N1,290 and sell it at N1,280 on Monday, April 22nd, 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: N1,250
Selling Rate: N1,240

Naira

Dollar to Naira Black Market Today, April 22nd, 2024

As of April 22nd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,290 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

1 day ago

April 22, 2024

Samed Olukoya

As of April 22nd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,290 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 N1,100 and sell it at N1,090 on Friday, April 19th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined 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.