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Redesigning Naira Notes Will Benefit The Economy, Says Buhari

President Muhammadu Buhari announced that the CBN had given him reasons to believe redesigning the Nigerian Naira is a move that would benefit the economy in terms of reducing inflation, curtailing excess cash in circulation, and currency counterfeits.

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Muhammadu Buhari

President Muhammadu Buhari announced that the Central Bank of Nigeria (CBN) had given him reasons to believe redesigning the Nigerian Naira is a move that would benefit the economy in terms of reducing inflation, curtailing excess cash in circulation, and currency counterfeits.

The president stated that he had given his approval to CBN as it was a move that would help sustain the economy.

Barely a week ago, the CBN had disclosed the intention to redesign the N200, N500, and N1000 notes following the president’s approval.

Stakeholders have since taken to their various social media platforms to voice the opinion on the decision. For some, it wasn’t the right time given current economic reality, for others, mainly economists and analysts, it was the right thing to do to compel hoarders and other individuals to spend N2.7 trillion reportedly out of the financial system.

With January 31, 2023 set as the deadline for Nigerians to abandon old notes and adopt the new Naira notes scheduled to be released on December 15, 2022, hoarders have started exchanging their old notes to the U.S. Dollar. A situating that has increased demand for the U.S. Dollar and bolstered Naira to Dollar Exchange rate to N815 at the black market.

Meanwhile, the Minister of Finance, Budget and National Planning, Zainab Ahmedhad said she was not informed of the central bank’s plan to redesign and circulate new Naira notes.

Ahmed said she and her Ministry were not consulted by CBN but received the news through the media. She stated that the plan to redesign and roll out the new Naira notes at this time holds serious consequences for the value of the Naira to other global currencies.

A senior official expressed dismay at the minister’s statement, he said it was totally embarrassing to make such claims, stating that the permanent secretary to the ministry is also a member of the CBN board.

However, the central bank insists that it followed the law and due process to implement the exercise.

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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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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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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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