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CBN to Introduce New Naira Notes After 20 Years

CBN moves to introduce new designs of N200, N500, and N1000 notes by December 15, 2022, following approval from President Muhammadu Buhari.

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Naira Remains under pressure

The Central Bank of Nigeria (CBN) moves to introduce new designs of N200, N500, and N1000 notes by December 15, 2022, following approval from President Muhammadu Buhari.

The Central Bank Governor, Godwin Emefiele made this known at Abuja on Wednesday during a press meeting.

According to the CBN Governor, the global practice requires central banks to redesign, produce and circulate new local currency every five years, meanwhile, the Nigerian Naira has not been redesigned in the last twenty years.

Emefiele, with respect to the distribution of the new Naira notes, said the Commercial Banks would receive the new designs of the new Naira notes on a first come first serve basis, the CBN governor urged the public to return existing currency into their bank accounts, informing banks to suspend Bank charges for cash Deposits with immediate effects, adding that the existing notes would be invalid and not be regarded as legal tender by January 31, 2023.

He said it is of great worry that Nigerians presently hoard 85% of the currency in circulation outside the commercial banking system, adding that the soon-to-be-released Naira notes would reduce the frequency of the counterfeit notes.

However, the CBN Governor said that currency circulation has doubled and in September 2022, 2.7 trillion out of the 3.32 trillion was outside the commercial bank and this can’t be allowed.

Bode Ososami, a Business Analyst expressed his opinion in regards to the new Naira Notes said, the Federal Government’s plan to introduce new designs of the Naira notes will be helpful in reducing the illegal counterfeit roaming around, adding that, the move is sanitation that is long overdue with diverse advantages attached to it and it will appreciate the currency.

Bode stated that the only disadvantage of the move is the logistics and cost it would incur on the CBN. However, the bottom line is that it is an opportunity to digitalize the economy, the more digitalized, the more efficient the economy will be if it is properly applied.

Naira

Dollar to Naira Black Market Today, February 23rd, 2024

As of February 23rd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,610 NGN in the black market, also referred to as the parallel market or Aboki fx.

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Naira Dollar Exchange Rate - Investors King

As of February 23rd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,610 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 N1,650 and sell it at N1,640 on Thursday, February 22nd, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate improved 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: N1,610
  • Selling Rate: N1,600

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Naira

Naira Appreciates Slightly to N1,542.58/$ at NAFEM

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New Naira notes

The Naira appreciated marginally against the United States dollar, closing at N1,542.58/$ at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday.

This modest gain represents a 2.9 percent appreciation from the previous day’s rate of N1,598.54, highlighting a nuanced fluctuation in the currency’s value.

According to data sourced from the FMDQ Securities Exchange, a platform overseeing FX trading in Nigeria, the Naira’s journey throughout the trading day was marked by an intra-day high of N1,755 and a low of N1,050.

Moreover, the total foreign exchange turnover surged to $172.14 million, indicating a 47 percent increase from the previous day.

Despite the Naira’s marginal gain at NAFEM, concerns persist regarding the widening gap between the official and parallel market rates.

The Naira’s depreciation to N1,900 against the dollar in the parallel market before it moderated to N1,687 later in the day.

Analysts and Bureau De Change operators foresee further pressure on the Naira, with predictions of a potential all-time low of 2,000/dollar at the parallel market in the coming weeks.

The demand for the greenback continues to fuel volatility, prompting regulatory actions from entities like the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to curb speculative activities.

As stakeholders monitor the currency’s trajectory, the CBN’s efforts to address forex liquidity challenges and stabilize the Naira remain under scrutiny amidst evolving market dynamics.

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CBN Report: Currency Outside Banks Drops to N3.28 Trillion in January 2024

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New Naira notes

A recent report released by the Central Bank of Nigeria (CBN) has indicated a notable decline in the amount of currency held outside banks, dropping to N3.28 trillion in January 2024.

This figure represents 89% of the total currency in circulation (CIC), signifying a shift in money circulation patterns.

Compared to December 2023, where currency outside banks stood at 94% of the total CIC, the recent decline suggests a reconfiguration in monetary dynamics.

The report further unveils a significant year-on-year surge, with currency outside banks skyrocketing by 314%, rising from N79 billion in January 2023 to N3.28 trillion in January 2024.

Currency trends in 2023 displayed fluctuating patterns, with notable peaks and dips throughout the year. However, December 2023 marked the zenith, recording the highest percentage of money held outside banks to CIC at 94%.

The CBN report sheds light on evolving financial landscapes, reflecting changing consumer behaviors, economic policies, and market dynamics.

Analysts anticipate that the data will inform future monetary policies and regulatory measures to ensure financial stability and liquidity in Nigeria’s economy amidst shifting trends and emerging challenges.

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