The dollar to naira exchange rate today Wednesday, 29 June 2022 remained largely unchanged at the Investors and Exporters forex window and the Central Bank of Nigeria (CBN)’s section of foreign exchange.

The dollar to naira exchange opened the day at N420.70 to a U.S. Dollar on Tuesday and closed at N421, representing a decline in value of N0.30. Forex traders transacted 206.65 million dollars at the official Investors and Exporters window on Tuesday.

In the CBN forex section, U.S. Dollar was sold at N415.6 by the apex bank to authorised dealers, slightly better than N415.64 it exchanged on Monday.

Against the Pounds Sterling, the Naira appreciated from N509.824 to N508.53. However, against the Euro common currency, the value of the Naira dropped from N433.05 on Monday to N439.5 on Tuesday.

Dollar to Naira Black Market Exchange Rate

Forex scarcity continued to drag on the Naira value in the unregulated foreign exchange market popularly known as the black market.

On Wednesday, the Naira was exchanged at N614 for a United States Dollar on the black market. Representing another decline of N7 from N607 it was sold two weeks ago.

According to traders in that section of forex, rising demand amid a chronic scarcity is responsible for the wide foreign exchange rate of the local currency and could worsen if developed economies plunge into recession as widely projected.

Inflow into emerging economies like Nigeria will drop, hence impeding the apex bank’s ability to service the economy.

Crude Oil

Crude oil extended its gains for four consecutive days on Wednesday after it became obvious that OPEC and its allies will not be able to meet their targets as projected.

Brent crude oil, the international benchmark for Nigerian oil, appreciated to $120 a barrel on Wednesday while the U.S West Texas Intermediate (WTI) rose from $99.33 per barrel a week ago to $112.37 per barrel.

According to Jeffrey Halley, Senior Market Analyst, Asia Pacific, OANDA, said “A surprise drop by US API Crude Inventories by 3.8 million barrels helped the bullish momentum, with markets ignoring the rise in refined product stocks. Disruptions to Libyan and Ecuadorian production were supportive, but the Macron’s remarks yesterday around Saudi Arabia and the UAE’s limited production capacity seems to have been the main driver.”

Naira declined against its global counterparts in the official foreign exchange market of the Central Bank of Nigeria (CBN) on Thursday, June 16, 2022.

The Nigerian Naira dipped N0.07 against the United States Dollar from N415.72 on Wednesday to N415.79 Thursday. Against the Pounds Sterling, the Naira remained bullish this week even though it gave back N1.1656 of the over N19 gained on Tuesday against the Pounds Sterling.

The CBN sold the Pounds Sterling at N503.5 on Thursday, compared to N502.4392 it exchanged on Wednesday and N521.491 it traded a week ago.

Also, against the Euro common currency, the local currency remained largely flat at N434.5421, the same rate (N434.5937) it was sold in the previous trading session. See the details below.

CBN Dollar (USD) to Naira (NGN Buying and Selling Rates

Please note that the CBN exchange rates are the amount the central bank sells and buys from Deposit Money Banks (DMBs), the only approved forex deals as of today.

How Much is a Dollar to Naira in Black Market Today?

At the unregulated forex market popularly known as the black market, the Naira was sold at N610 in Abuja and Lagos on Thursday morning. In Ibadan, it was exchanged at N605.

The wide exchange rates when compared to the CBN rates were a result of chronic foreign exchange scarcity bedeviling the Nigerian economy. This scarcity forced businesses looking to purchase forex for raw material acquisition to patronise the black market despite CBN warnings against engaging in forex transactions with operators of that section. See selling and buying rates for US Dollars at the black market today below.

Crude Oil

Brent crude oil against which Nigerian oil is price moderated to $117.92 a barrel from $123 on Tuesday following the Federal Reserve’s decision to increase the interest rate by 75 basis points.

Oil prices rose on Monday after details of the ongoing crisis in Libya became public. It was reported that the country has shut down almost all its oil production fields, meaning about 1 million barrels per day is off the global market.

Jeffrey Halley, Senior Market Analyst, Asia Pacific, OANDA in a note to Investors King said “The supply/demand situation, higher natural gas prices, the squeeze on refined products, and lost Russian production all mean that oil prices remain constructive at these levels for now.”

Naira depreciated slightly against the United States Dollar on Tuesday at the official foreign exchange window managed by the Central Bank of Nigeria (CBN).

The local currency was sold at N415.72 to a United States Dollar, slightly lower than the N415.63 it was exchanged for on Thursday.

Against the Pounds Sterling, the Nigerian Naira gained N19.0518 from N521.491 it was sold by the apex bank on Thursday to N502.4392 on Tuesday.

Similarly, against the Euro common currency, the Naira appreciated by N11.7929 to N434.5937, up from N446.3866 it traded on Thursday.

Naira Black Market Rate

In the unregulated black market, the Nigerian Naira remained under pressure trading at N610 to a United States Dollar in Lagos and Abuja. In Ibadan, it was exchanged at N605 on Tuesday.

Pounds Sterling is not any better, Nigerians bought the British Pounds at N748 and sold it at N740 despite the apex bank mandating it to be sold around N505.  Most forex traders, however, blamed the apex bank for black market success, saying scarcity of forex forced most businesses to patronize that section of forex.

Crude Oil

Crude oil extended its bullish run on Tuesday as supply concerns outweigh COVID-19 concerns. Oil prices appreciated on reports that OPEC and allies are struggling to deliver on pledged production increases because of the capacity issues in many members.

Brent crude oil, against which Nigerian oil is priced, rose to $123.21 a barrel from $122 it opened the week on Monday while the U.S. West Texas Intermediate (WTI) crude oil appreciated by $1.22 to $122.05 a barrel.

Craig Erlam, a Senior Market Analyst, UK & EMEA, OANDA in a note to Investors King said “Oil prices have steadied in recent days as economic fears and fresh Chinese restrictions have taken the wind out of the sails of the rally. The market remains extremely tight and further disruptions in Libya, where production has reportedly fallen by more than a million barrels a day since last year, aren’t helping matters.”

Cryptocurrency

Bitcoin and the entire cryptocurrency market remained in limbo as the market value of Bitcoin plunged by 50% from the year to date while other cryptocurrencies like Ethereum, XRP, etch have shed closed 60%. Investors are now scrambling to cut losses and exit the unregulated market.

However, there were reports that certain cryptocurrency companies have halted withdrawal, forcing investors to go through the bearish circle.

Other cryptocurrency companies like Crypto.com, Coinbase, BlockFi, etc have started cutting jobs to cut operating costs.