Naira

Naira Exchange Rate Quickens to N800/US$1 as Naira Hoarders Mop Dollars

The Naira to Dollar exchange rate plunged to N800 at the unregulated parallel market, popularly known as the black market during the weekend.

Published

1 year ago

October 31, 2022

Samed Olukoya

Following the Central Bank of Nigeria (CBN)’s decision to redesign the Nigerian Naira notes, the Naira to Dollar exchange rate plunged to N800 at the unregulated parallel market, popularly known as the black market during the weekend.

This, currency traders in that section of the foreign exchange market attributed to the sudden decline in the Naira due to the surge in demand for the U.S. Dollars by suspected hoarders looking to offload their Naira holdings ahead of the new naira notes scheduled for release on December 15, 2022.

However, at the interbank forex section managed by the CBN, the local currency remained fairly stable against its global counterparts. Trading at N438.5 against the United States Dollar; N507.5638 against the Pounds Sterling and N439.6401 to a Euro last week.

Date	Currency	Buying(NGN)	Central(NGN)	Selling(NGN)
10/27/2022	US DOLLAR	437.5	438	438.5
10/27/2022	POUNDS STERLING	506.4063	506.985	507.5638
10/27/2022	EURO	438.6375	439.1388	439.6401

At the Investors and Exporters forex window, the Naira was exchanged at N444.75 to a United States Dollar on Friday as the daily turnover moderated to $61.89 million.

Crude Oil

In the early hours of Monday, oil prices dipped by $1 on reports that the Chinese factory data, the purchasing managers’ index contracted as concerns COVID-19 restrictions could slow down demand for the commodity.

Brent crude oil, the international benchmark for oil, dropped $1.10, or 1.2%, to $94.67 a barrel at 8:15 am Nigerian time. While the U.S. West Texas Intermediate (WTI) crude oil stood at $86.83 a barrel, down $1.07, or 1.2%.

However, on a monthly basis, Brent and WTI are up by 7.7% and 9.3% respectively. Their first monthly gain since May.

“The purchasing managers’ index (PMI) data contracting adds to the post-China congress party blues for oil markets. It is not difficult to draw a straight line from weaker PMIs to China’s COVID-zero policy,” said Stephen Innes, managing partner of SPI Asset Management.

“So long as COVID-zero remains entrenched, it will continue to thwart oil bulls.”

Cryptocurrency

The cryptocurrency space came alive during the weekend after Elon Musk reportedly announced plans to integrate cryptocurrency wallets into Twitter.

Dogecoin, a meme coined backed by Musk, gained 17% on Friday and added about 70% on Saturday to take its total gain to 87% within two days.

Bitcoin also picked up, rising above $20,500 a coin before pulling back 1.22% on Monday. Similarly, Eth, BNB and XRP have started paring gains amid a 72% decline in HUSD stablecoin after the Huobi exchange platform delisted it. HUSD dropped from $1 a coin to $0.28.

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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

Naira Appreciates to N1,136/$ Officially, N1,050/$ Parallel Market

Published

8 hours ago

April 16, 2024

Samed Olukoya

The Nigerian Naira appreciated to N1,136 against the United States Dollar at the official market and rose to N1,050 at the parallel market.

At the official foreign exchange market, data from the FMDQ Exchange revealed that the Naira strengthened by 6.1 percent or N69 from its previous rate of N1,205/$ recorded on Friday to N1,136/$ on Monday.

This surge underscores the effectiveness of recent foreign exchange directives implemented by the Central Bank of Nigeria (CBN), aimed at stabilizing the Naira and bolstering liquidity in the market.

At the parallel market, the Naira appreciated to N1,050 against the Dollar, reflecting an improvement in the currency’s value in informal trading circles.

This resurgence has brought renewed hope to traders and businesses operating in the informal sector, as they anticipate further strengthening of the Naira in the coming days.

The improved exchange rate follows a series of strategic interventions by the CBN to address foreign exchange challenges and stabilize the Naira.

The positive momentum in the forex market has been further reinforced by a surge in total inflows into the Nigerian Autonomous Foreign Exchange Market (NAFEM), which increased by 41.7 percent to $3.75 billion in March, compared to $2.64 billion in February.

Commenting on the recent developments, analysts at Afrinvest expressed optimism about the continued strengthening of the Naira, attributing it to the CBN’s intensified efforts to bolster liquidity in the market.

They anticipate further improvements in the exchange rate as the apex bank maintains its proactive stance on forex management.

Naira

Naira Hits Eight-Month High at 1,120/$ Amidst Central Bank Reforms

Published

5 days ago

April 11, 2024

Samed Olukoya

The Nigerian Naira has surged to an eight-month high of 1,120 against the US dollar on the parallel market, commonly referred to as the black market.

This significant appreciation comes on the heels of a series of foreign exchange (FX) reforms initiated by the Central Bank of Nigeria (CBN), which have effectively unlocked dollar liquidity within the economy.

According to data compiled from online platforms and street traders, the current exchange rate reflects a gain of 62.95% for the Naira against the dollar compared to its level of 1,825 per dollar in February 2024.

Market sentiment suggests that the recent strengthening of the Naira can be attributed to a subdued demand for the US dollar, coupled with ample liquidity in the market, particularly during the holiday period.

Despite a decline in external reserves, Nigeria’s currency strengthened to 1,230.61 per dollar on the official FX market before the holidays.

The recent uptick in the Naira’s value follows the CBN’s decision to review the exchange rate for Bureau De Change (BDC) Operators to 1,101 per dollar from 1,251 per dollar.

Also, the CBN announced plans to sell $15.88 million to 1,588 eligible BDCs, further bolstering dollar liquidity in the market.

The CBN’s proactive approach to FX management, including the resolution of foreign exchange backlogs amounting to US$7 billion, has instilled confidence among investors and market participants.

Furthermore, the apex bank’s commitment to implementing reforms aimed at enhancing transparency and efficiency in the FX market has yielded positive results.

Naira

Dollar to Naira Black Market Today, April 9th, 2024

As of April 9th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,200 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

1 week ago

April 9, 2024

Samed Olukoya

As of April 9th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,200 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 N1,240 and sell it at N1,230 on Monday, April 9th, 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.