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Total Amount of Naira in Circulation Falls by 53 Percent as Cash Crunch Worsens in Nigeria

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Naira Dollar Exchange Rate - Investors King

The latest data from the Central Bank of Nigeria (CBN) has revealed that total amount of currency-in-circulation has fallen by 53.33 percent since October last year to January, this year.

The data, contained in a report presented by the CBN Deputy Governor, Folashodun Shonubi, at a forum in Abuja, indicated that the cash in circulation decreased from N3.3 trillion to N1.54 trillion.

It was gathered that the 53.33 decrease in the cash within the public space was due to Nigerians’ high compliance to the order by CbN for bank customers to deposit their old N1000, N500 and N200 notes before the bank’s February 10, 2023 controversial deadline.

Bank customers had thronged commercial banks with the old notes and deposited them with the expectation that the new notes would be within their reach.

Investors King had reported the anguish, pain and hardship that majority of Nigerians are passing through following the scarcity of the new redesigned currency.

The biting shortage of the new naira notes has severely affected commercial activities across the country as small and medium-scale business owners have been lamenting low sales while some have closed up their businesses including Point of Sales operators.

The CBN Governor, Godwin Emefiele, had said one of the objectives of the naira design policy was to mop up currency outside the bank vaults which he put at N2.7tn. He had said with such a huge amount outside the banking system, it would be difficult for monetary policy initiatives to impact the economy.

While citizens lament hardship caused by the naira redesign policy, President Muhammadu Buhari, in an attempt to reduce the problem in getting the naira, had ordered CBN to re-circulate the old N200 notes to the public, and declared that the old N500 and N1,000 banknotes were no longer legal tender in the country.

Since the President gave the new order concerning the N200 old notes, bank customers have complained that the old notes was yet to be released to them.

Customers were seen crowding banks for naira even as some banks remain shut

It could be recalled that some state governors had directed their residents to continue spending the old notes in line with an order of the Supreme Court.

But checks revealed that traders and transporters in several states across the country have insisted on collecting only new naira notes and old N200 note in line with the directive of President Buhari.

Some traders and commercial transporters have been rejecting bank transfer even as online transactions have been problematic for Nigerians.

Many Nigerians have lamented hitches in transacting online as they said that their transactions have not been successful while others use fake alerts for unsuspecting traders.

In the midst of the crisis, Nigerians continue to throng the apex bank to return their old notes while others hold on to theirs with the hope that the Supreme Court judgment would win and ordered the usage of the old currency.

Financial experts have called on the Federal Government to do more in assaulting the suffering of the masses, saying the N200 old notes order could be helpful if it’s made available.

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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.

Published

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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