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Naira Declines Against Pounds Sterling, Euro But Unchanged Against U.S Dollar

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Naira - Investors King

The Nigerian Naira was unchanged against the United States Dollar at the Central Bank of Nigeria’s regulated exchange portal.

The Naira to Dollar exchange rate stood at N416.34, the same rate it exchanged on Friday and Monday. Against the Pounds Sterling, the Nigerian Naira dipped slightly from N548.5696 on Friday to N546.4879 on Monday.

Similarly, against the Euro common currency, the Naira traded at N454.0188, down from N452.6865. These are the rates the Central Bank of Nigeria (CBN) sells to Deposit Money Banks, the only approved institutions to buy and sell foreign currencies.

At the unregulated black market, the Naira remained pressured, trading at N570 to a United States Dollar in Ibadan.

Foreign Reserves

Nigeria’s foreign reserves declined by $70 million from $39.870 billion on Friday to $39.800 billion, according to the latest data from the Central Bank of Nigeria.

Despite the rise in crude oil to $133 per barrel, the foreign reserves continue to decline, largely due to the rising cost of landing finish petroleum products and the amount needed by the Federal Government of Nigeria to subsidize the products for its over 200 million population.

Africa’s largest economy and the biggest exporter of crude oil on the continent may not be able to take advantage of the current increase in crude oil prices as it still depends on imports for finished petroleum products.

Crude Oil

Brent crude oil, the international benchmark, rose to $133 per barrel on Tuesday after the U.S and U.K imposed sanctions on Russian oil imports.

President Biden had announced the United States will halt imports of Russian fossil fuels including oil. The United Kingdom on the other hand said it would ban Russian oil imports but will continue to allow natural gas and coal from Moscow.

The ban bolstered oil prices as experts believed the decision would worsen global supply, especially given the market is already struggling with supplies. OPEC and allies, together known as OPEC plus, can’t even meet their own targets. While the ongoing talks between Tehran and Washington might have slowed down after Russia demanded a written assurance that the revival of the U.S-Iran nuclear deal will not affect Moscow-Tehran trade relations.

Experts now believed Iranian crude oil may not hit the global market anytime soon, hence why they have started predicting $200 a barrel as early as March ending.

Cryptocurrency

The cryptocurrency market came alive on Tuesday evening after President Biden was said to be planning to sign an executive order outlining the U.S government’s plan for cryptocurrency space.

People familiar with the situation said the president will direct Justice Department, Treasury and other agencies to study the legal and economic ramifications of creating a U.S. central bank digital currency. This, the crypto community interpreted as positive for the crypto space.

Bitcoin gained 8.18% to $42,132 per coin. The Ethereum token (ETH) also appreciated by 6.33% to $2,754. Terra (Luna) gained the most in the last 24 hours, appreciating by 20.25% to $98.13 a coin.

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

Nigeria Hits Historic High as Currency in Circulation Surges to N3.69 Trillion

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Nigeria’s currency in circulation surged to a historic high of N3.69 trillion, according to data released by the Central Bank of Nigeria (CBN).

This figure represents an increase of N43.07 billion or 1.18 percent from the total of N3.65 trillion reported in January 2024 and a 13.64 percent year-on-year rise from N3.25 trillion reported in February 2023.

Currency in circulation encompasses the physical cash, including paper notes and coins, actively used in transactions between consumers and businesses within the country.

The latest statistics indicate a considerable uptick in the availability of cash within the Nigerian economy.

The surge in currency supply comes amidst lingering concerns over a potential cash crunch following the monetary policy adjustments by the CBN, particularly the aggressive tightening stance of the Monetary Policy Committee (MPC).

Analysts attribute this spike to various factors, including the fear factor stemming from the cash crunch experienced in 2023 and lingering uncertainties surrounding the administration of physical currency.

Despite the surge in currency in circulation, Nigeria’s economic growth remains sluggish, with projections indicating growth rates of around 2.9 percent to 3.1 percent for 2024.

Also, inflation remains a significant concern, with the headline inflation rate climbing to 31.70 percent in February 2024 from 29.9 percent reported in January 2024, according to data from the National Bureau of Statistics (NBS).

The CBN’s proactive approach to monetary policy, including a historic increase in the monetary policy rate (MPR) to 24.75 percent, underscores the central bank’s commitment to addressing economic challenges and fostering stability amidst persistent pressures.

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Nigerian Naira Surges to N1,350 per Dollar in Parallel Market

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New Naira notes

The Nigerian Naira has appreciated to N1,350 per dollar in the parallel market, a significant gain from its previous rate of N1,430 per dollar just a day earlier.

Similarly, in the Nigerian Foreign Exchange Market (NAFEM), the naira strengthened to N1,382.95 per dollar, indicating an upward trend across key forex segments.

Data from FMDQ revealed that the indicative exchange rate for NAFEM fell to N1,382.95 per dollar from N1,408.04 per dollar on the previous day, representing a gain of N25.09 for the naira.

This surge in the naira’s value has widened the margin between the parallel market rate and NAFEM to N32.95 per dollar from N21.96 per dollar previously.

Analysts attribute this impressive surge to recent foreign exchange reforms implemented by the Central Bank of Nigeria (CBN).

These reforms, including the consolidation of exchange rate windows and liberalization of the FX market, have contributed to bolstering the naira’s strength against the dollar.

The CBN’s proactive measures aim to promote stability, transparency, and liquidity in the foreign exchange market, fostering confidence among investors and strengthening the national currency.

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Naira

Dollar to Naira Black Market Today, March 26th, 2024

As of March 26th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,430 NGN in the black market, also referred to as the parallel market or Aboki fx.

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New Naira notes

As of March 26th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,430 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 N1,450 and sell it at N1,440 on Monday, March 25th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate improved 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: N1,430
  • Selling Rate: N1,420

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