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CBN Governor Reels Out Gains of Naira Redesign Amid Deadline Confusion

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Godwin Emefiele - Investors King

For many Nigerians, the hardship occasioned by the decision of the Central Bank of Nigeria (CBN) to redesign some higher denominations of the nation’s currency is unprecedented.

From unending queues at banking halls, Automated Teller Machines (ATMs) spots and customer service desks to non-circulation of the new naira, Nigerians have bemoaned the policy and condemned it for its poor management.

There has been confusion across the country as the CBN insisted that February 10, 2023 is the deadline for the old notes to be legal tenders, despite a temporary order of the Supreme Court that Nigerians should be allowed to co-spend the new and old notes.

When this latest stance of the apex bank filtered into the public on Tuesday, Investors King had reported that there was confusion and panic among the people, especially traders who had been transacting with the old notes. When some of them got to the commercial banks to deposit the old notes, they were directed to the CBN office.

Contrary to the opinions of affected Nigerians, CBN Governor, Godwin Emefiele has disclosed that there are many gains that the naira swap would fetch the country’s economic outlook and currency management.

Unlike some insinuations in some quarters that the naira redesign policy was hasty and afterthought, Emefiele argued that the bank had a comprehensive discussion, analysis and wide consultation before arriving at the decision, affirming that it was for the good of the Nigerian economy.

Briefing the diplomatic community on recent monetary policy decisions of the CBN at the Ministry of Foreign Affairs in Abuja on Tuesday, Emefiele revealed that the nation had been challenged in currency management in Nigeria and that the issue has been undermining the nation’s sovereign integrity

In order to tackle the persistent challenges, the CBN Governor said the bank decided to redesign N1,000, N500 and N200 notes.

Emefiele said the decision is among the bank’s purview, adding that currency management is a key function of the Central Bank of Nigeria, as enshrined in Section 2(b) of the CBN Act 2007.

For the CBN boss, the institution is only interested in the integrity of a local legal tender, the efficiency of its supply, as well as its efficacy in the conduct of monetary policy, adding that they are some of the hallmarks of a great Central Bank and that at long run, the nation would see the benefits.

Some of the gains of the currency redesign initiative, according to Emefiele, included making the monetary policy decisions more effective and that it has been seeing inflation trending downwards and exchange rates relatively stable.

He said the bank was hoping to increase financial inclusion in the country by reducing the number of the unbanked population, adding that the bank’s aim is to fight Insecurity and banditry in the country.

The CBN Governor said the currency swap I’d already paying off as ransom-taking has become difficult while and the military are making good progress in the fight against insecurity.

He added that there are expectations that the policy would fetch more economic gains for Nigeria, including reduction in money supply, lowering inflation, exchange rate stability among others.

Explaining why Nigerians have been facing difficulty in accessing the new currency, Emefiele blamed some politicians whom he said had bought and hoarded the new currency for political reasons.

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Naira

Black Market Dollar (USD) to Naira (NGN) Exchange Rate Today 23rd May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 23rd, 2024 stood at 1 USD to ₦1,500.

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The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 23rd, 2024 stood at 1 USD to ₦1,500.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,470 and sold it at ₦1,460 on Wednesday, May 22nd, 2024.

This indicates a decline in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

  • Buying Rate: ₦1,500
  • Selling Rate: ₦1,490

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

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Naira

Naira Loses 1.47% Against Dollar, Hits N1,500 on Black Market

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New Naira notes

The Nigerian naira faced a downturn on Wednesday against the US dollar as the local shed 1.47 percent at the black market to N1,500 per dollar.

This development comes hot on the heels of the Central Bank of Nigeria’s (CBN) decision to raise its monetary policy rate (MPR) by 150 basis points to 26.25 percent.

Just a day prior, the naira had exhibited resilience against the dollar following a two-day of gains that brought it down from its recent peak of N1,530 on May 14, 2024.

The CBN’s move to raise the interest rate was met with anticipation and speculation across financial markets, and its impact on the naira’s value became evident soon after.

Traders at the black market reported a noticeable surge in demand for the dollar, albeit with limited availability in substantial quantities, exacerbating the currency’s depreciation.

Contrastingly, at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, the naira experienced a slight uptick, appreciating marginally by 0.23 percent.

The dollar was quoted at N1,465.68 compared to N1,468.99 recorded on Monday, as per data from the FMDQ Securities Exchange Limited.

During trading on Tuesday, the intraday high closed at N1,549 per dollar, displaying strength compared to the previous day’s closure of N1,556.

However, the intraday low remained stable at N1,401 per dollar, mirroring Monday’s rate of N1,400.

Market activity reflected a significant surge in the daily foreign exchange turnover, soaring by 66.14 percent to $268.17 million on Tuesday from the previous day’s $161.41 million, indicating heightened trading activity and increased demand for foreign currency.

The fluctuating dynamics in the currency market underscore the delicate balance between domestic economic policies and external market forces, with investors and traders closely monitoring developments for potential implications on trade and investment strategies.

As the naira navigates through these fluctuations, stakeholders remain vigilant, seeking opportunities and mitigating risks in the ever-evolving financial landscape.

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Naira

Black Market Dollar to Naira Exchange Rate Today 22nd May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 22nd, 2024 stood at 1 USD to ₦1,470.

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on

Naira Dollar Exchange Rate - Investors King

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 22nd, 2024 stood at 1 USD to ₦1,470.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,480 and sold it at ₦1,470 on Tuesday, May 21st, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

  • Buying Rate: ₦1,470
  • Selling Rate: ₦1,460

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

Continue Reading
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