Naira

Dollar, Euro, Pounds Sterling Dip Against the Nigerian Naira

Published

2 years ago

March 7, 2022

The value of the Nigerian Naira improved against its global counterparts at the official foreign exchange window, according to the Central Bank of Nigeria’s available data.

The Nigerian Naira gained 14 kobo against the United States Dollar to N416.27, while the local currency appreciated by N4.017 against the Pounds Sterling to N553.14. Naira to Euro exchange rate stood at N456.98, an N4.94 gain from N461.92 it exchanged on Thursday.

The rates quoted above were the rates the Central Bank of Nigeria sells and buys from the International Money Transfer Operators (IMTOs) and the Deposit Money Banks (DMBs).

However, at the unregulated black market patronised by most Nigerians, the exchange rates remained overwhelmingly high as the Nigerian Naira is presently trading at N577.00 per dollar, largely due to persistent demand at that section of forex.

Foreign Reserves

Nigeria’s foreign reserves inched slightly higher to $39.873 billion from $39.865 billion recorded on March 3, 2022. The reserves seem to be responding to Nigeria’s only viable source of foreign revenue generation, the surge in crude oil to over 14 years high on Monday.

Still, the reserves remained weak when compared to Nigeria’s population. This, in part, is due to the nation’s inability to broaden its manufacturing output and improve export receipts.

The foreign reserves is expected to inch higher as global oil prices continue to rise. Few experts are already predicting $200 a barrel, above the $150 predicted by Investors King.

Crude Oil

The price of Brent crude oil, the benchmark for Nigeria’s type of crude oil, rose by 18% to over $130 a barrel in the early hours of Monday during the Asian trading session.

Oil jumped on concerns that U.S and allies, largely European nations, sanctions on Russian crude oil could worsen the already tight global oil market pushed crude oil above $150 a barrel. This was after Russia had demanded a written agreement from the United States to guarantee that the revival of the U.S-Iran nuclear deal will not affect Moscow’s trade relation with Iran.

This, experts claimed could slow down the U.S-Iran nuclear deal talks and further push back the expected date for Iranian oil to hit global market.

Cryptocurrency to Naira

Cryptocurrencies remained in red and largely function as risk assets against certain notions that the unregulated digit assets are safe-haven assets necessary to hedge against inflation in terms of crisis like Gold.

Bitcoin to Naira exchange rate dipped by 0.40 to N15.900 million in the last 24 hours, while Ethereum to Naira exchange declined by 3.04 percent to N1.053 million.

The decline continues against Cardano, Binance Coin (BNB) and Tether as they shed 2.84%, 0.47% and 0.73%.

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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 25th, 2024

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

2 days ago

April 25, 2024

Samed Olukoya

Naira to Dollar Exchange- Investors King Rate - Investors King

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 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 N1,260 and sell it at N1,250 on Wednesday, April 24th, 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.

Black Market Dollar to Naira Exchange Rate

Buying Rate: N1,300
Selling Rate: N1,290

Naira

Dollar to Naira Black Market Today, April 24th, 2024

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

3 days ago

April 24, 2024

Samed Olukoya

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 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 N1,250 and sell it at N1,240 on Tuesday, April 23rd, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined slightly 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: N1,260
Selling Rate: N1,250

Naira

Nigeria’s Naira Dips 5.3% Against Dollar, Raises Concerns Over Reserve Levels

Published

3 days ago

April 24, 2024

Samed Olukoya

Nigerian Naira depreciated by 5.3% against the US dollar as concerns over declining foreign reserves raise questions about the central bank’s ability to sustain liquidity.

The local currency has now declined for the third consecutive day since the Naira retreated from its three-month high on Friday shortly after Bloomberg pointed out that the Naira gains were inversely proportional to foreign reserves’ growth.

According to data from Lagos-based FMDQ, the naira’s value dropped precipitously, halting its recent impressive performance.

The unofficial market saw an even steeper decline of 6%, extending the currency’s retreat over the past three trading days to a staggering 17%.

Abubakar Muhammed, Chief Executive of Forward Marketing Bureau de Change Ltd., expressed concerns over the sharp decline, highlighting the insufficient supply of dollars in the market.

Muhammed noted that despite a 27% increase in traded volume at the foreign exchange market on Monday, the supply remained inadequate, forcing the naira to soften further while excess demand shifted to the unofficial market.

The dwindling foreign exchange reserves have been a cause for alarm, with Nigeria’s gross dollar reserves steadily declining for 17 consecutive days to reach $32 billion as of April 19, the lowest level since September 2017.

This worrisome trend has raised questions about the adequacy of dollar inflows to rebuild reserves, especially after the central bank settled overdue dollar obligations earlier in the year.

Samir Gadio, Head of Africa Strategy at Standard Chartered Bank, pointed out that while the naira had been supported by onshore dollar selling, the rally was likely overextended.

Gadio warned that the emergence of a dislocation in the market, with domestic participants selling dollars at increasingly lower spot levels was unsustainable and necessitated a correction.

The central bank’s efforts to stabilize the naira have been evident with interventions aimed at improving liquidity.

However, the effectiveness of these measures remains uncertain, particularly as the central bank offered dollars to bureau de change operators at a rate 17% below the official rate tracked by FMDQ.

Analysts, including Ayodeji Dawodu from Banctrust Investment Bank, foresee further challenges ahead, predicting that the naira will likely stabilize around 1,500 against the dollar by year-end.

Dawodu emphasized the importance of stabilizing the currency to attract strong foreign capital inflows, underscoring the significance of sustainable monetary policies in Nigeria’s economic recovery.

As Nigeria grapples with the repercussions of the naira’s depreciation and declining foreign reserves, policymakers face mounting pressure to implement measures that ensure stability and foster confidence in the economy.

The road ahead remains uncertain, with the fate of the naira intricately tied to Nigeria’s ability to address underlying economic vulnerabilities and bolster investor trust.