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Naira Exchanges at N705/US$ at the Black Market

The Naira exchanged at N705 to a United States Dollar in Lagos, Abuja and a few other states

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Naira - Investors King

The Nigerian Naira exchanged lower at the parallel market, popularly known as the black market, on Tuesday amid the persistent foreign exchange scarcity and weak foreign revenue generation.

The local currency was exchanged at N705 to a United States Dollar in Lagos, Abuja and a few other states covered by our correspondent.

At the Investors and Exporters’ foreign exchange window, the Naira shed N3.45 from N431.30 it opened the day on Monday, September 5, 2022, to N434.75 at the close of business. This represents a decline of N5.13 or 1.2% from the N429.62 it traded on August 15, 2022.

Currency traders at the Investors and Exporters’ foreign exchange window transacted $99.68 million in trade on Monday, according to the data available at the FMDQ managed forex window.

At the Central Bank of Nigeria’s (CBN) regulated foreign exchange section, the Naira was exchanged at N426.28 to the United States while against the British Pounds Sterling it was transacted at N490.2646 on Monday.

The Naira traded at N422.9124 against the Euro common currency.

Crude Oil

Brent crude oil, the international benchmark for Nigerian oil, lost $4.14 from $96.96 a barrel it peaked on Monday when OPEC+ announced plans to cut production for the first time since 2020 to support price, to $92.82 per barrel on Tuesday.

The decline in oil price despite the announced production cuts was due to the report that new COVID-19 restrictions are possibly underway in China, additional interest rate increases and weaker demand for the commodity.

Global energy concern has now shifted from demand to rising interest rates and escalating inflation numbers across the globe.

“The OPEC+ news is now in the market and the focus has temporarily shifted to economic and inflationary concerns amongst which the two relevant factors are the extended COVID lockdowns in China and Thursday’s ECB rate decision,” said Tamas Varga of oil broker PVM.

Cryptocurrency

Bitcoin continues to trade below the $20,000 a coin price level ahead of Ethereum merge scheduled for September 15 to 16.

The highly risky and uncertain process is necessary to move the Ethereum protocol from Proof of Work (PoW) to Proof of Stake (PoS), a process largely expected to reduce gas fees (charges on Ethereum transfer) substantially and help bolster its attractiveness to global project inventors.

On Tuesday, Ether, the token of Ethereum, appreciated by 4.23% to ₦1,169,556 or $1,667.09 per coin while Bitcoin lost 0.31% to ₦13,868,843 or $19,827.62 a coin.

BNB, Binance token, appreciated by 1.98% to ₦197,649 or $280.76 per 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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Naira

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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