Connect with us

Naira

Why We Pushed More New Notes Into Circulation, Economy – CBN

Published

on

Godwin Emefiele - Investors King

The Central Bank of Nigeria (CBN) has explained that it has pushed more new naira notes into circulation and the nation’s economy because more deposits of the old notes had been deposited into banks.

To this end, the apex bank urged Nigerians to ensure that they return the old notes in their possession to their respective banks, adding that the more old notes banks generate, the increase in the quantum of the redesigned notes that would be available for members of the public.

This came as bank customers had complained of unavailability of the new naira notes at most Automated Teller Machines (ATMs) across the country, Investors King understands.

But, speaking at the CBN’s sensitisation tour on the new naira notes at Balogun Market, Lagos, the Branch Controller, CBN, Lagos State, Koyor Baribokola, assured marketers and traders that it has made the redesigned naira notes (N1000, N500, and N200) available for them through ATMs.

Baribokola disclosed that the rate of deposit of the old naira notes by bank customers has improved significantly, adding that the apex bank initially had a challenge because people were not depositing the old notes.

While saying that the situation whereby people refuse to take the old notes to the bank had changed, the CBN controller noted that increase in deposit of Old notes boosted the bank’s confidence in ensuring that more new notes are made available.

Addressing traders at the market, he said, “we (CBN) are having many deposits now; this gives us the confidence to push more new notes into circulation and into the economy. We are making them available to you and you will have them if you haven’t had them before. Please have the assurance that you are going to have them.

“We pushed out a lot last week and now we are continuing with it, part of the meeting was what delayed my coming out here. We set a date for the deadline for the complete change over that is January 31, and for now, that stands. We have not extended or changed the time.”

Baribokola called on Nigerians to ensure they deposit the old notes before the January 31, 2023 deadline, and urged stakeholders in the banking sector to improve sensitisation on deposit of old naira notes and why people should handle the redesigned notes neatly.

He said, “please have the assurance that the new naira notes were redesigned in the interest of all Nigerians including you so that you have them and you enjoy spending them and keep them safe, and as much as possible, try and also do electronic transactions.

“We encourage people to use our e-channels to do transfers, to spend, to buy and to do all that you need to do to share with your friends and your families,” he noted.

Continue Reading
Comments

Naira

Hoarding of Redesigned Naira: Culpable Bank Officials Risk N5m Fine, Jail Term as Anti-Graft Agents Intensify Arrests

Published

on

New Naira notes

As agents of the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Related Offences Commission (ICPC), and Department of State Security (DSS) have been storming commercial banks and picking up senior bank officials hoarding the redesigned naira notes, those culpable may not have realised the extent of trouble they are enmeshed in.

Aside arresting defaulting banks, the agencies have also been arresting other individuals who deal in selling the naira notes.

In some parts of Nigeria including Abuja, Osogbo, Ekiti among others, law enforcement agents have apprehended senior officials of commercial banks for failing to load their Automated Teller Machines (ATMs) with the new currency, thus fueling chaos and crisis in the nation’s financial system.

Investors King had reported how EFCC agents arrested the bank manager of a commercial bank in the Federal Capital Territory (FCT) for hoarding N29 million new notes.

Meanwhile, even as the operatives intensify their round-up exercise in order to restore sanity to the financial institutions, it has been revealed that those arrested may be at the risk of paying the sum of N5 million as fine.

As contained in the Central Bank of Nigeria Act of 2007 and the Banks and other Financial Institutions Act of 2020, banks hoarding notes should be punished by the apex bank through payment of N5m fine while members of the public transacting the new notes risk N50,000 fine.

If any official working with a particular bank is caught hoarding the currency, the Act says such worker is liable to a fine of at least N5m which the bank would pay and an extra N100,000 for each day of the compliance failure.

According to the Act, the Governor of CBN has the right to alter, amend or propose new fines as contained in Section 5(4,5) of the Act.

It further revealed that where the governor proposes to vary, revoke or impose fresh or additional conditions on a licence, the Governor shall, before exercising such power, make notice of his intention known to the bank affected and give the bank an opportunity to make representation to him thereon.

After this is done, any bank that fails to comply with any fresh or additional condition imposed in relation to its licence is liable to (a) a penalty of not less than N5,000,000, and (b) an additional penalty of N100,000 for each day during which the fresh or additional condition is not complied with.

The punishments for defaulters are not limited to fine, imprisonment is also involved in a case where the convict could not meet the fine.

In the midst of the crisis, the Act states that even though some officials might escape being arrested, but any bank director, manager or officer who fails to ensure that compliance is observed is also guilty and is liable to at least three years imprisonment, or N2m, or both.

It was further discovered that Section 5(6) of the Act states that any person who, being a director, manager or officer of a bank fails to take reasonable steps to secure compliance with any of the conditions of the licence of the bank commits an offence and is liable on conviction to imprisonment for a term of not less than three years or a fine of not less than N2,000,000 or both.

For those who have been found hawking and trading the Nigeria around commercial banks and elsewhere, they are liable to six months imprisonment or a fine of at least N50,000, according to the CBN Act 2007.

The could be recalled that the CBN had earlier threatened to prosecute anyone caught selling or abusing the Naira.

To this end, security agents have been raiding the banks and picking up those who flout the directives.

Also, officials of the apex bank have been going around the country and monitoring compliance level of commercial banks with discoveries of cash hoarding in some banks.

The CBN Director of Corporate Communications, Osita Nwanisobi, had expressed worry over the hoarding and selling of the new notes, and promised to work with security agencies to tackle the menace.

 

Continue Reading

Naira

Black Market Dollar To Naira Exchange Rate For Today 7th February 2023

Published

on

New Naira notes

You can access the black market Dollar to Naira exchange rate for today, 7th February on Investors King.

This online business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.

Note that the exchange rate changes hourly.… it depends on the volume of dollars available and the Demands. It means that…you can buy or sell 1 dollar at ₦752 and ₦755, and the price can change (high or low) within hours.

How Much Is Black Market Dollar To Naira Exchange Rate Today?

Dollar to naira exchange rate today black market (Aboki dollar rate):

Investors King understands that the exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N752 and sell at N755 as of the time of filing this report.

Exchange Rate of Dollar To Naira in Black Market Today?
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate 752
Selling Rate 755

The local currency opened at N755.00 per $1 at the parallel market otherwise known as the black market today Monday, 7th February 2023, in Lagos Nigeria, after it closed at N757 per $1 on Monday, 6th February 2023.

Even though the dollar to naira opened in the parallel market at N755 per $1 today, Investors King reports that the Central Bank of Nigeria (CBN) does not recognize the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.

Investors King reports that in the black market, the players buy a dollar for N752 and sell for N755 on Monday morning, February 6, 2023, after they purchased N753 and sold for N757 on Saturday, 5th February 2023.

Factors Influencing Foreign Exchange Rates

Here are some of the causes of the dwindling dollar to naira exchange rate.

Inflation Rates: It is well known that inflation directly impacts black market exchange rates. If the Nigerian economy can be stabilized and inflation is controlled, the naira will benefit; however, if the naira continues to fall, it may indicate that food and other necessities are becoming more expensive daily.

Interest Rates: Another tool to keep an eye on is interest rates. If the interest rate at which banks lend money rises, it would harm the economy, causing it to contract and, as a result, the value of the naira to fall.

Government Debt: National debt can impact investor confidence and, as a result, the influx of funds into the economy. If inflows are high, the naira exchange rate will rise in favour of the naira.

Speculators: Speculators frequently impact the naira-to-dollar exchange rate. They stockpile money in anticipation of a gain, causing the naira to plummet even lower.

Conditions of Trade: Favorable trade terms will increase the value of the naira to the dollar, although Nigeria is currently experiencing a trade deficit. Everything comes from China, India, and the majority of Asian countries.

Continue Reading

Naira

Black Market Dollar To Naira Exchange Rate For Today 28th January 2023

Dollar to naira exchange rate today black market (Aboki dollar rate)

Published

on

New Naira notes

You can access the black market Dollar to Naira exchange rate for today, 28th January on Investors King.

This online business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.

Note that the exchange rate changes hourly.… it depends on the volume of dollars available and the Demands. It means that…you can buy or sell 1 dollar at ₦750 and ₦755, and the price can change (high or low) within hours.

How Much Is Black Market Dollar To Naira Exchange Rate Today?

Dollar to naira exchange rate today black market (Aboki dollar rate):

Investors King understands that the exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N750 and sell at N755 as of the time of filing this report.

Exchange Rate of Dollar To Naira in Black Market Today?
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate 750
Selling Rate 755

The local currency opened at N755.00 per $1 at the parallel market otherwise known as the black market today Saturday, 28th January 2023, in Lagos Nigeria, after it closed at N750 per $1 on Thursday, 26th January 2023.

Even though the dollar to naira opened in the parallel market at N755 per $1 today, Investors King reports that the Central Bank of Nigeria (CBN) does not recognize the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.

Investors King reports that in the black market, the players buy a dollar for N750 and sell for N757 on Saturday morning, January 28, 2023, after they purchased N744 and sold for N746 on Thursday, 26 January 2023.

Meanwhile, Investors King reports that the USD started this week at ₦745 in Parallel Market also known as Black Market on Monday, January 23, 2023, in Lagos Nigeria, after it opened at ₦744 last week Monday, January 16, 2023.

Factors Influencing Foreign Exchange Rates

Here are some of the causes of the dwindling dollar to naira exchange rate.

Inflation Rates: It is well known that inflation directly impacts black market exchange rates. If the Nigerian economy can be stabilized and inflation is controlled, the naira will benefit; however, if the naira continues to fall, it may indicate that food and other necessities are becoming more expensive daily.

Interest Rates: Another tool to keep an eye on is interest rates. If the interest rate at which banks lend money rises, it would harm the economy, causing it to contract and, as a result, the value of the naira to fall.

Government Debt: National debt can impact investor confidence and, as a result, the influx of funds into the economy. If inflows are high, the naira exchange rate will rise in favour of the naira.

Speculators: Speculators frequently impact the naira-to-dollar exchange rate. They stockpile money in anticipation of a gain, causing the naira to plummet even lower.

Conditions of Trade: Favorable trade terms will increase the value of the naira to the dollar, although Nigeria is currently experiencing a trade deficit. Everything comes from China, India, and the majority of Asian countries.

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending