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Kaduna Residents Turn to Petrol Stations for Cash Amidst ATM Scarcity

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Residents of Kaduna State, Nigeria, are turning to petrol filling stations for help in their desperate search for cash to meet their urgent needs, according to the News Agency of Nigeria.

This development is due to the scarcity of liquid cash in automated teller machines (ATMs) of most banks in the metropolis, as well as the closure of point-of-sale operators for the same reason.

The situation has forced people to seek cash from petrol stations where they look for customers buying fuel with cash instead of electronic transfer. An agreement is then reached between those in need of cash and those buying petrol with cash, where the fuel buyer pays the fuel cost from their account via electronic transfer, and then the person in need of cash receives the cash from the fuel buyer in return.

While the arrangement has come as a relief to many people who have been under severe hardship, it is not without its challenges. There is uncertainty around network service and the time spent waiting for the turn of the person helping one to be dispensed fuel. In addition, there are some needs that can only be satisfied using liquid cash, which limits the usefulness of this arrangement.

The situation has also affected some hospitals in Kaduna, which are experiencing a dearth of patients. Some employees of the hospitals attribute the low turnout to the unavailability of new naira notes. Patients are also unable to settle their transportation fare to the hospital due to the lack of cash.

In response to the situation, tricycle operators in the Kaduna metropolis are now displaying their account details for customers to settle their fare electronically. Passengers are also being warned in advance that old N500 and N1,000 notes are no longer legal tenders and will not be accepted.

The situation in Kaduna highlights the need for effective cash management by banks and other financial institutions. It also underscores the importance of investing in digital infrastructure to enable seamless electronic transfer of money, thereby reducing the reliance on physical cash.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira

Naira Appreciates Slightly to N1,542.58/$ at NAFEM

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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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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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Naira

Dollar to Naira Black Market Today, February 21st, 2024

As of February 21st, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,820 NGN in the black market, also referred to as the parallel market or Aboki fx.

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As of February 21st, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,820 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 N1,710 and sell it at N1,700 on Tuesday, February 20th, 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: N1,820
  • Selling Rate: N1,810

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