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Arresting BDCs Will Worsen the Economy – Lemo

Tunde Lemo has said arresting Bureau De Change Operators (BDcs) suspected to be hoarding U.S. dollars will only worsen the nation’s economic position.

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The former deputy governor of the Central Bank of Nigeria (CBN), Tunde Lemo has said arresting Bureau De Change Operators (BDcs) suspected to be hoarding U.S. dollars will only worsen the nation’s economic position.

Lemo’s comment was after the Economic and Financial Crimes Commission (EFCC) reportedly raided stands of BDCs in the Wuse Zone 4 area of Abuja last week.

Speaking to the press in Abeokuta, Ogun State on Saturday, Tunde Lemo explained that it was not the activity of the BDCs that caused forex scarcity but insecurity and non-remittance of forex by the Nigerian National Petroleum Corporation recently registered as the Nigerian National Petroleum Corporation Limited.

In his words: “This (the arrest) will lead us to nowhere and worsen the dire situation. The current scarcity is caused by the security situation in the country as well as the non-remittance of Forex by NNPC, a major supplier”.

The market is sensitive to too many rules. CBN should move more to the market- determined exchange rate policy with less capital control. This is the only way to attract liquidity from independent sources. Involving EFFC, at this stage will compound the problems”.

On August 5, it was reported that Abdulrasheed Bawa, Chairman, EFCC, met with the representatives of Bureau de Change Operators in Abuja to discuss how to curb forex hoarding and activities that could impede the progress of Nigeria’s economy.

According to Bawa, BDCs activities were responsible for the over N700 per US$1 exchange rate at the parallel market popularly known as the black market.

The meeting was EFFC’s effort at addressing the alarming crash in the value of the Nigerian Naira against its global counterparts on the black market and also to come up with a collaborative strategy between the commission and BDCs, especially at the black market/parallel market.

Furthermore, the commission hoped to have similar meetings at other major Bureau de Change Operator cities like Kano, Lagos, Port Harcourt, Enugu and Calabar.

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Forex

Naira to Dollar Black Market Exchange Rate September 26th, 2023

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Naira - Investors King






What is the Dollar to Naira exchange rate at the parallel market, known as the black market (Abokifx) today? As of September 26th, 2023, the dollar to naira exchange rate is 1 USD to 995 NGN at the black market.

This means that for every one US dollar, you can exchange it for ₦995, Investors King reports.

This digital business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.

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

This rate is subject to change depending on a variety of factors including global economic trends, political developments, and market fluctuations. However, you can buy and sell 1 USD at ₦995 and ₦990 as of the time of writing today.

What is the current exchange rate of the dollar to naira in the black market today?

According to Investors King, as of the time this report was filed, a dollar can be purchased at the Lagos parallel market (black market) for ₦995 and sold for ₦990.

Exchange Rate of Dollar To Naira in Black Market Today?

Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate 990
Selling Rate 995

Central Bank of Nigeria (CBN) Naira Exchange Rates for Banks

Investors King understands that although the dollar to naira opened at N995 per $1 in the parallel market today, the Central Bank of Nigeria (CBN) does not acknowledge the parallel market, also referred to as the black market. The CBN has instructed individuals in need of forex to approach their bank as the I&E window is the sole recognized exchange.

On Tuesday, September 26th, 2023, individuals in the black market purchased one US dollar for N995 and sold it for N990. This shows that the value of the Naira declined further when compared to Monday, September 25th, 2023 when the local currency was exchanged at N985 to a Dollar and a Dollar was purchased at N990.

To stay informed about the dollar to naira exchange rate, there are a number of reliable sources that you can turn to. Here are some tips for staying up-to-date:

  • Check the Central Bank of Nigeria’s website: The CBN is responsible for regulating the country’s monetary policy and is a reliable source for the latest exchange rates. You can check their website regularly for updates.
  • Follow financial news outlets: Financial news outlets such as Investors King, Bloomberg, Reuters, and CNBC provide regular updates on the global currency markets, including the dollar to naira exchange rate.
  • Use online currency converters: There are a number of online currency converters that allow you to quickly and easily check the exchange rate between the dollar and the naira.
  • Follow social media accounts of financial experts: Following social media accounts of financial experts such as analysts, economists, and financial advisors can give you valuable insights into the latest trends in the currency markets.

By staying informed about the dollar-to-naira exchange rate, you can make informed decisions when buying or selling foreign currencies. Whether you are a business owner looking to trade in foreign currencies or an individual looking to invest in the currency markets, knowledge of the latest exchange rates is key to success. Keep these tips in mind and stay informed about the latest trends in the global currency markets.




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Black Market Rate

Naira to Dollar Black Market Exchange Rate September 25th, 2023

What is the Dollar to Naira exchange rate at the parallel market, known as the black market (Abokifx) today?

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Naira - Investors King






What is the Dollar to Naira exchange rate at the parallel market, known as the black market (Abokifx) today? As of September 25th, 2023, the dollar to naira exchange rate is 1 USD to 990 NGN at the black market.

This means that for every one US dollar, you can exchange it for ₦990, Investors King reports.

This digital business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.

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

This rate is subject to change depending on a variety of factors including global economic trends, political developments, and market fluctuations. However, you can buy and sell 1 USD at ₦990 and ₦985 as of the time of writing today.

What is the current exchange rate of the dollar to naira in the black market today?

According to Investors King, as of the time this report was filed, a dollar can be purchased at the Lagos parallel market (black market) for ₦990 and sold for ₦985.

Exchange Rate of Dollar To Naira in Black Market Today?

Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate 985
Selling Rate 990

Central Bank of Nigeria (CBN) Naira Exchange Rates for Banks

Investors King understands that although the dollar to naira opened at N990 per $1 in the parallel market today, the Central Bank of Nigeria (CBN) does not acknowledge the parallel market, also referred to as the black market. The CBN has instructed individuals in need of forex to approach their bank as the I&E window is the sole recognized exchange.

On Monday, September 25th, 2023, individuals in the black market purchased one US dollar for N990 and sold it for N985. This shows that the value of the Naira declined further when compared to Wednesday, September 20th, 2023 when the local currency was exchanged at N965 to a Dollar and a Dollar was purchased at N957.

To stay informed about the dollar to naira exchange rate, there are a number of reliable sources that you can turn to. Here are some tips for staying up-to-date:

  • Check the Central Bank of Nigeria’s website: The CBN is responsible for regulating the country’s monetary policy and is a reliable source for the latest exchange rates. You can check their website regularly for updates.
  • Follow financial news outlets: Financial news outlets such as Investors King, Bloomberg, Reuters, and CNBC provide regular updates on the global currency markets, including the dollar to naira exchange rate.
  • Use online currency converters: There are a number of online currency converters that allow you to quickly and easily check the exchange rate between the dollar and the naira.
  • Follow social media accounts of financial experts: Following social media accounts of financial experts such as analysts, economists, and financial advisors can give you valuable insights into the latest trends in the currency markets.

By staying informed about the dollar-to-naira exchange rate, you can make informed decisions when buying or selling foreign currencies. Whether you are a business owner looking to trade in foreign currencies or an individual looking to invest in the currency markets, knowledge of the latest exchange rates is key to success. Keep these tips in mind and stay informed about the latest trends in the global currency markets.




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Naira Nosedive: President Tinubu’s Optimism Clashes with Currency Crisis

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Nigeria’s President Bola Tinubu brought his message of optimism to the New York Nasdaq exchange this week, calling on investors to “be confident in Nigeria.”

However, his spirited demeanor contrasts starkly with the growing unease on the streets of Nigeria, where confidence in the national currency, the naira, is eroding rapidly.

On Thursday, the naira hit a historic low, and currency traders tracking the exchange rate predict it is teetering on the edge of reaching a 1000-per-dollar exchange rate on the parallel market. The naira’s value has fallen nearly 30% below its official rate on the FMDQ OTC trading platform as both individuals and businesses scramble to acquire U.S. dollars.

Ogho Okiti, Chief Executive of ThinkBusiness Africa, a Lagos-based advisory and data services firm, described the current situation as a “demand for foreign exchange stampede,” noting that the demand extends beyond imports to the preservation of value.

The recent plunge in the naira has dampened much of the optimism generated by President Tinubu’s reform program, which he unveiled shortly after taking office in June.

His initial promises included unifying the complex exchange rate system and abolishing costly fuel subsidies, which initially sent Nigerian markets soaring.

During his speech in New York, President Tinubu reaffirmed his commitment to these reforms, assuring investors that bottlenecks had been removed and the exchange rate had been stabilized. However, market experts have a different perspective. Many attribute the naira’s decline to the central bank’s failure to supply dollars to the official market, leaving buyers no choice but to turn to street traders for foreign currency.

This divergence has dramatically widened the gap between the parallel and official exchange rates, which had initially converged after Tinubu’s inauguration.

Market players argue that authorities are not allowing the foreign exchange market to function as a “willing buyer, willing seller” platform, as they had promised.

Ayo Salami, Chief Investment Officer at Emerging Markets Investment Management Ltd. in London, stated, “With the current restrictions in the FX market, it is not possible to form a realistic judgment on the value of the naira.”

Concerns about reforms have grown further, especially after Tinubu was compelled to suspend a planned gasoline price increase last month. Hopes for a prompt and substantial interest rate hike to stabilize the naira were dashed by the central bank’s announcement that next week’s policy meeting would be postponed indefinitely.

Currently, interest rates stand at 18.75%, while inflation approaches 30%.

Moreover, the confirmation of the central bank’s new governor, former Citigroup executive Olayemi Cardoso, is pending. This delay, along with the resignation of the acting governor and four deputy governors, has created a policy-making vacuum at the highest level.

Foreign investors remain cautious about investing in local assets due to fears of exposure to a depreciating naira and concerns about capital withdrawal. The authorities have also yet to clear a backlog of hard currency arrears totaling billions of dollars owed to foreign companies and investors.

The naira’s decline has also affected Nigerian dollar bond markets, with issues maturing in 2033 falling more than half a cent on Thursday to 76.5 cents, a significant drop from end-July highs. While the Lagos stock exchange closed slightly lower for a second consecutive day, it still hovers near the 15-year highs reached soon after Tinubu’s inauguration.

Segun Agbaje, CEO of Guaranty Trust Holding Co., summed up the situation, saying, “People are not going to come in until they’re sure that there is a certain amount of stability around the exchange rate, and that’s where we are.”

Foreign investors and Nigerians alike will be closely watching how President Tinubu’s government navigates these economic challenges in the coming months.




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