Naira

Naira Slips Further Against the U.S. Dollar, Exchanges at N740

Naira traded at N740 to a United States Dollar, a decline of N3 from the N737 it exchanged on Friday

Published

2 years ago

October 5, 2022

The exchange rate of the Nigerian Naira to a United States Dollar declined further at the parallel market, the Nigerian black market for foreign exchange (forex), on Tuesday.

The local currency traded at N740 to a United States Dollar, a decline of N3 from the N737 it exchanged on Friday.

At the Central Bank of Nigeria (CBN) regulated forex section, the Naira traded at N432.87 to a U.S. Dollar, slightly below N432.54 it was sold on September 28, 2022.

Similarly, the Pounds Sterling gained some ground against the Naira, appreciating by 2.47%, or N11.34 from N458.5357 to N469.8804.

Against the Euro common currency, the story is not different as the embattled Naira dropped 1.63% or N6.7656 to N420.7496 from N413.984.

Persistent forex scarcity amid growing economic uncertainty ahead of the 2023 general elections continues to drag on the local currency. Also, a series of economic policies instituted to arrest the situation had either compounded the woes of the local currency or generally ineffective.

In an effort to rein in inflation and simultaneously lure foreign investors into the Nigerian economy, the CBN-led monetary policy committee raised interest rates by 150 basis points to 15.5%, a position widely contested by most economic experts and stakeholders.

However, the CBN had insisted that to sustain capital inflow at a period when global economies are aggressively raising interest rates, Nigeria also must improve borrowing costs to ensure global investors look the country’s way, especially given that foreign revenue from crude oil had dropped significantly with rising oil theft.

Still, experts think it would hurt new business creation, new job creation, new investment and generally, the state of the economy as evident with the stock market in recent weeks.

Crude Oil

Brent crude, oil against which Nigerian oil is priced, dipped by 29 cents or 0.29% to $91.51 a barrel in the early hours of Wednesday. While the U.S. West Intermediate oil shed 40 cents or 0.46% to $86.12 a barrel.

Slowing demand, rising global interest rates, high inflation, strong U.S. Dollar amid Russia Ukraine unrest are some of the factors hurting the oil outlook.

China, the world’s largest importer of the commodity, is struggling with growth following reports of COVID-19 lockdown and strict restrictions in key commercial cities. Few of the economic data released in recent weeks pointed to declining growth in the world’s second-largest economy.

Cryptocurrency

The cryptocurrency space remains bearish despite a few gains here and there. Bitcoin, the world’s most dominant cryptocurrency, appreciated by 0.53% in the last 24 hours to $20,078.66 a coin.

Eth, a token of the Ethereum protocol, remains largely subdued. Trading at $1,342.93 a coin, representing a decline of 0.60%.

Ripple (XRP), BNB, Stellar and Solana gained 3.70%, 0.49%, 0.48% and 0.68% to $0.478528, $292.53, $0.117434 and $33.72, respectively.

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Samed Olukoya

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

Dollar to Naira Black Market Today, April 25th, 2024

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

1 day ago

April 25, 2024

Samed Olukoya

Naira to Dollar Exchange- Investors King Rate - Investors King

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 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 N1,260 and sell it at N1,250 on Wednesday, April 24th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined 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: N1,300
Selling Rate: N1,290

Naira

Dollar to Naira Black Market Today, April 24th, 2024

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

2 days ago

April 24, 2024

Samed Olukoya

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 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 N1,250 and sell it at N1,240 on Tuesday, April 23rd, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined 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: N1,260
Selling Rate: N1,250

Naira

Nigeria’s Naira Dips 5.3% Against Dollar, Raises Concerns Over Reserve Levels

Published

2 days ago

April 24, 2024

Samed Olukoya

Nigerian Naira depreciated by 5.3% against the US dollar as concerns over declining foreign reserves raise questions about the central bank’s ability to sustain liquidity.

The local currency has now declined for the third consecutive day since the Naira retreated from its three-month high on Friday shortly after Bloomberg pointed out that the Naira gains were inversely proportional to foreign reserves’ growth.

According to data from Lagos-based FMDQ, the naira’s value dropped precipitously, halting its recent impressive performance.

The unofficial market saw an even steeper decline of 6%, extending the currency’s retreat over the past three trading days to a staggering 17%.

Abubakar Muhammed, Chief Executive of Forward Marketing Bureau de Change Ltd., expressed concerns over the sharp decline, highlighting the insufficient supply of dollars in the market.

Muhammed noted that despite a 27% increase in traded volume at the foreign exchange market on Monday, the supply remained inadequate, forcing the naira to soften further while excess demand shifted to the unofficial market.

The dwindling foreign exchange reserves have been a cause for alarm, with Nigeria’s gross dollar reserves steadily declining for 17 consecutive days to reach $32 billion as of April 19, the lowest level since September 2017.

This worrisome trend has raised questions about the adequacy of dollar inflows to rebuild reserves, especially after the central bank settled overdue dollar obligations earlier in the year.

Samir Gadio, Head of Africa Strategy at Standard Chartered Bank, pointed out that while the naira had been supported by onshore dollar selling, the rally was likely overextended.

Gadio warned that the emergence of a dislocation in the market, with domestic participants selling dollars at increasingly lower spot levels was unsustainable and necessitated a correction.

The central bank’s efforts to stabilize the naira have been evident with interventions aimed at improving liquidity.

However, the effectiveness of these measures remains uncertain, particularly as the central bank offered dollars to bureau de change operators at a rate 17% below the official rate tracked by FMDQ.

Analysts, including Ayodeji Dawodu from Banctrust Investment Bank, foresee further challenges ahead, predicting that the naira will likely stabilize around 1,500 against the dollar by year-end.

Dawodu emphasized the importance of stabilizing the currency to attract strong foreign capital inflows, underscoring the significance of sustainable monetary policies in Nigeria’s economic recovery.

As Nigeria grapples with the repercussions of the naira’s depreciation and declining foreign reserves, policymakers face mounting pressure to implement measures that ensure stability and foster confidence in the economy.

The road ahead remains uncertain, with the fate of the naira intricately tied to Nigeria’s ability to address underlying economic vulnerabilities and bolster investor trust.