The Nigerian Naira maintained a flat rate against the US dollar at N420.75/$1 on the Investors and Exporters (I&E) window on Tuesday.
According to Investors King, this is almost the same rate the local currency traded on Monday when it exchanged at N420.25 to US$1.
At the Central Bank of Nigeria (CBN) regulated forex section, the U.S Dollar was sold at N415.63 to deposit money banks and international money transfer operations allow to deal with the CBN directly. The apex bank acquired US$1 at N414.63 as of June 6, 2022.
However, despite the CBN selling dollars at N415.63 to deposit money banks for onward sale to importers and other forex users, Nigerians are complaining that it is impossible to access forex at CBN stipulated rate in any of the banks. Hence, why the black market section continues to thrive.
Most importers and businesses are now patronising that section of forex despite the CBN warning. This explains the surge in demand that has now bolstered the exchange rate at the black market to as high as N607 to a single U.S. Dollar, an increase of about 33% from the CBN mandated rate.
Foreign Reserves
While the CBN has continued to service the economy with the U.S. dollar, the bank’s intervention rate has dropped due to the decline in Nigeria’s foreign reserves.
The central bank sustained Nigeria’s Naira exchange by selling dollars realised from crude oil sales. However, because of the persistent decline in Nigeria’s crude oil sales in the first half of 2022, the apex bank has been unable to strategically support the Naira as usual.
For instance, Nigeria’s foreign reserves started nosediving since politicians commenced campaigns for the 2023 general elections. Data from the CBN showed foreign reserves declined from $39.012 billion on May 13, 2022, to $38.422 billion, representing a decline of $588 million.
This decline has been attributed in part to the bribery of delegates expected to vote in various primaries.
Cryptocurrency Exchange Rate
Evidently, the digital currency has witnessed a slight recovery since the past week, having to deal with a constant decline in value.
Bitcoin to Naira exchange rate appreciated in the last 24 hours by 2.49% to N18,250,022 a coin as against the N17,655,200 million a coin on Tuesday.
The Ethereum token (ETH) also witnessed an improvement of 2.38% to close N1,081,309 to a coin as against ₦1,051,333 of yesterday, and apparently the first time since its consistent decline in value for a week plus.
Binance coin (BNB) followed through as the rate grew with a 1.14% going for N172,997, unlike the N166,036 to a coin as of yesterday.
Note that the exchange rate changes hourly.… it depends on the volume of dollars available and the Demands. It means that…you can buy or sell 1 dollar at ₦750 and ₦755, and the price can change (high or low) within hours.
How Much Is Black Market Dollar To Naira Exchange Rate Today?
Dollar to naira exchange rate today black market (Aboki dollar rate):
Investors King understands that the exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N750 and sell at N755 as of the time of filing this report.
Exchange Rate of Dollar To Naira in Black Market Today?
Dollar to Naira (USD to NGN)
Black Market Exchange Rate Today
Buying Rate
750
Selling Rate
755
The local currency opened at N755.00 per $1 at the parallel market otherwise known as the black market today Saturday, 28th January 2023, in Lagos Nigeria, after it closed at N750 per $1 on Thursday, 26th January 2023.
Even though the dollar to naira opened in the parallel market at N755 per $1 today, Investors King reports that the Central Bank of Nigeria (CBN) does not recognize the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.
Investors King reports that in the black market, the players buy a dollar for N750 and sell for N757 on Saturday morning, January 28, 2023, after they purchased N744 and sold for N746 on Thursday, 26 January 2023.
Meanwhile, Investors King reports that the USD started this week at ₦745 in Parallel Market also known as Black Market on Monday, January 23, 2023, in Lagos Nigeria, after it opened at ₦744 last week Monday, January 16, 2023.
Factors Influencing Foreign Exchange Rates
Here are some of the causes of the dwindling dollar to naira exchange rate.
Inflation Rates: It is well known that inflation directly impacts black market exchange rates. If the Nigerian economy can be stabilized and inflation is controlled, the naira will benefit; however, if the naira continues to fall, it may indicate that food and other necessities are becoming more expensive daily.
Interest Rates: Another tool to keep an eye on is interest rates. If the interest rate at which banks lend money rises, it would harm the economy, causing it to contract and, as a result, the value of the naira to fall.
Government Debt: National debt can impact investor confidence and, as a result, the influx of funds into the economy. If inflows are high, the naira exchange rate will rise in favour of the naira.
Speculators: Speculators frequently impact the naira-to-dollar exchange rate. They stockpile money in anticipation of a gain, causing the naira to plummet even lower.
Conditions of Trade: Favorable trade terms will increase the value of the naira to the dollar, although Nigeria is currently experiencing a trade deficit. Everything comes from China, India, and the majority of Asian countries.
As pressures and appeals rise for an extension of the deadline for deposit of old naira notes, the Central Bank of Nigeria, CBN has insisted on the earlier announced January 31, 2023 deadline.
Investors King recalls that last year the CBN declared that new N200, N500, N1000 notes will be made available in banks on Dec 15, 2022 and the old currencies will cease to become legal tender by Jan. 31, 2023.
Reactions have trailed the redesigned naira notes and the stipulated deadline due to the slow circulation of the new currencies.
The Senate of the National Assembly, on Tuesday said the CBN should extend the deadline for old notes deposit by six months and compel banks to open naira exchange windows for those who do not have bank accounts.
Reacting to the increasing pressures, CBN Governor, Godwin Emefiele said there is no going back on the deadline given.
Emefiele declared this on Tuesday during a meeting of the Monetary Policy Committee in Abuja.
According to him, 90–100 days is enough to deposit the old naira notes in the bank, adding that the CBN compelled banks to remain open including on Saturdays in order to accept more cash deposits.
He noted that the apex bank is yet to identify any cogent reason why the deadline should be moved as agitated by some section of the people.
“Unfortunately, I don’t have good news for those who say we should shift the deadline. The reason is because 90 days, in fact, 100 days, is enough for anybody who has the old currency to deposit it in the bank.
“We took every measure to ensure all the banks remain open to receive the old currency, including opening on Saturdays. We do not see any reason to begin to talk about a shift. We believe 100 days is more than adequate,” Emefiele said.
Note that the exchange rate changes hourly.… it depends on the volume of dollars available and the Demands. It means that…you can buy or sell 1 dollar at ₦750 and ₦757, and the price can change (high or low) within hours.
How Much Is Dollar To Naira Exchange Rate Today?
Dollar to naira exchange rate today black market (Aboki dollar rate):
Investors King understands that the exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N750 and sell at N757 as of the time of filing this report.
Exchange Rate of Dollar To Naira in Black Market Today?
Dollar to Naira (USD to NGN)
Black Market Exchange Rate Today
Buying Rate
750
Selling Rate
757
The local currency opened at N757.00 per $1 at the parallel market otherwise known as the black market today Sunday, 22 January 2023, in Lagos Nigeria, after it closed at N757 per $1 on Saturday, 21st January 2023.
Even though the dollar to naira opened in the parallel market at N757 per $1 today, Investors King reports that the Central Bank of Nigeria (CBN) does not recognize the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.
Investors King reports that in the black market, the players buy a dollar for N750 and sell for N757 on Sunday morning, January 20, 2023, after they purchased N744 and sold for N746 on Thursday, 19 January 2023.
Meanwhile, Investors King reports that the USD started this week at ₦745 in Parallel Market also known as Black Market on Monday, January 16, 2023, in Lagos Nigeria, after it opened at ₦744 last week Monday, January 9, 2023.
Factors Influencing Foreign Exchange Rates
Here are some of the causes of the dwindling dollar to naira exchange rate.
Inflation Rates: It is well known that inflation directly impacts black market exchange rates. If the Nigerian economy can be stabilized and inflation is controlled, the naira will benefit; however, if the naira continues to fall, it may indicate that food and other necessities are becoming more expensive daily.
Interest Rates: Another tool to keep an eye on is interest rates. If the interest rate at which banks lend money rises, it would harm the economy, causing it to contract and, as a result, the value of the naira to fall.
Government Debt: National debt can impact investor confidence and, as a result, the influx of funds into the economy. If inflows are high, the naira exchange rate will rise in favour of the naira.
Speculators: Speculators frequently impact the naira-to-dollar exchange rate. They stockpile money in anticipation of a gain, causing the naira to plummet even lower.
Conditions of Trade: Favorable trade terms will increase the value of the naira to the dollar, although Nigeria is currently experiencing a trade deficit. Everything comes from China, India, and the majority of Asian countries.
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