Naira

CBN Governor Reels Out Gains of Naira Redesign Amid Deadline Confusion

Published

1 year ago

February 15, 2023

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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Dollar To Naira Exchange Rate For Today 15th February 2023

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CBN Says Old Naira Notes Not Legal Lender, Can Only be Deposited in Its Offices

Ugwoke Ogbodo

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Naira

Dollar to Naira Black Market Today, April 25th, 2024

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

1 day ago

April 25, 2024

Samed Olukoya

Naira to Dollar Exchange- Investors King Rate - Investors King

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 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 N1,260 and sell it at N1,250 on Wednesday, April 24th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined 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: N1,300
Selling Rate: N1,290

Naira

Dollar to Naira Black Market Today, April 24th, 2024

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

2 days ago

April 24, 2024

Samed Olukoya

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 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 N1,250 and sell it at N1,240 on Tuesday, April 23rd, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined 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: N1,260
Selling Rate: N1,250

Naira

Nigeria’s Naira Dips 5.3% Against Dollar, Raises Concerns Over Reserve Levels

Published

2 days ago

April 24, 2024

Samed Olukoya

Nigerian Naira depreciated by 5.3% against the US dollar as concerns over declining foreign reserves raise questions about the central bank’s ability to sustain liquidity.

The local currency has now declined for the third consecutive day since the Naira retreated from its three-month high on Friday shortly after Bloomberg pointed out that the Naira gains were inversely proportional to foreign reserves’ growth.

According to data from Lagos-based FMDQ, the naira’s value dropped precipitously, halting its recent impressive performance.

The unofficial market saw an even steeper decline of 6%, extending the currency’s retreat over the past three trading days to a staggering 17%.

Abubakar Muhammed, Chief Executive of Forward Marketing Bureau de Change Ltd., expressed concerns over the sharp decline, highlighting the insufficient supply of dollars in the market.

Muhammed noted that despite a 27% increase in traded volume at the foreign exchange market on Monday, the supply remained inadequate, forcing the naira to soften further while excess demand shifted to the unofficial market.

The dwindling foreign exchange reserves have been a cause for alarm, with Nigeria’s gross dollar reserves steadily declining for 17 consecutive days to reach $32 billion as of April 19, the lowest level since September 2017.

This worrisome trend has raised questions about the adequacy of dollar inflows to rebuild reserves, especially after the central bank settled overdue dollar obligations earlier in the year.

Samir Gadio, Head of Africa Strategy at Standard Chartered Bank, pointed out that while the naira had been supported by onshore dollar selling, the rally was likely overextended.

Gadio warned that the emergence of a dislocation in the market, with domestic participants selling dollars at increasingly lower spot levels was unsustainable and necessitated a correction.

The central bank’s efforts to stabilize the naira have been evident with interventions aimed at improving liquidity.

However, the effectiveness of these measures remains uncertain, particularly as the central bank offered dollars to bureau de change operators at a rate 17% below the official rate tracked by FMDQ.

Analysts, including Ayodeji Dawodu from Banctrust Investment Bank, foresee further challenges ahead, predicting that the naira will likely stabilize around 1,500 against the dollar by year-end.

Dawodu emphasized the importance of stabilizing the currency to attract strong foreign capital inflows, underscoring the significance of sustainable monetary policies in Nigeria’s economic recovery.

As Nigeria grapples with the repercussions of the naira’s depreciation and declining foreign reserves, policymakers face mounting pressure to implement measures that ensure stability and foster confidence in the economy.

The road ahead remains uncertain, with the fate of the naira intricately tied to Nigeria’s ability to address underlying economic vulnerabilities and bolster investor trust.