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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

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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Naira

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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