Naira

ATMs Still Dispensing Old Notes Despite CBN Directives

The Central Bank of Nigeria has warned commercial banks against stocking their Automated Teller Machines, ATMs with the old naira notes

Published

1 year ago

January 21, 2023

Blessing Akorowosi

As Nigeria prepares to cease the use of its old N200, N500 and N1000 notes by December 31, 2023, the Central Bank of Nigeria (CBN) has warned commercial banks against stocking their Automated Teller Machines, ATMs with the old naira notes.

The CBN has also urged banks to pick up new naira notes for massive dispersal but this has not been followed as several bank ATMs still dispense the old naira notes, Investors King reports.

The apex bank has, however, directed Nigerians to reject the old naira notes as the stipulated deadline for its expiration will not be changed.

Deputy Director, Currency Operation, CBN, Rekiyat Yusuf stressed that banks stocking their ATMs with old notes would be sanctioned if caught.

She urged bank users to report banks still dispensing the old notes instead of the redesigned notes, saying the CBN has given them enough new notes.

Yusuf said, “If banks give you old notes, reject it and return it to them and report the bank to us immediately for appropriate action. We have given them enough new currency notes to dispense to replace the old ones in circulation.

“There is no reason for banks to still be stocking their automated teller machines with old notes as the apex bank has made enough redesigned notes available for dispensing to members of the public. Any bank caught would be made to face appropriate sanction.”

The CBN Director of Currency Operations, Ahmed Bello Umar, on his part, noted that the CBN officials are on a monitoring tour across cities and towns to ensure that only new notes are dispensed at ATMs.

Umar added that commercial banks can now stock their machines with N1000, N500 or N200 as the withdrawal policy has been relaxed.

“All ATMs must carry only new notes. If the banks don’t have the new notes, they should not load the old notes. We’re going round towns and cities in Nigeria to ensure that all the ATMs are loaded with new notes. And there’s relaxation on the policy, they can dispense any of the notes either N1, 000, N500 or N200 notes,” he said.

However, the Sultan of Sokoto, Muhammadu Sa’ad Abubakar, has appealed to the central bank to extend the deadline as the message of the redesigned naira notes is yet to circulate.

He charged the bank officials to intensify sensitisation in rural places as some still think the redesigned notes are fake.

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Naira

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

Published

12 mins 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.