The Central Bank of Nigeria‘s (CBN) redesigned policy has resulted in a significant drop in the total amount of currency-in-circulation in the country.
According to figures obtained by Investors King from the CBN, the currency-in-circulation dropped from N3.29tn at the end of October 2022 to N1.38tn at the end of January 2023. This represents a drop of N1.91tn in just a three-month period.
The CBN’s Governor, Godwin Emefiele, had earlier announced the redesign policy in October 2022, which included the redesign of the old N200, N500 and N1,000 notes. As part of the policy, Nigerians were given deadlines to swap their old notes for the new ones.
The redesign policy was implemented to address several challenges associated with currency management in the country, including significant hoarding of banknotes by members of the public, counterfeiting, and shortage of clean and fit banknotes. The CBN had also recorded significantly higher rates of counterfeiting, especially at the higher denominations of N500 and N1,000 banknotes.
Before the redesign plan, a huge figure of currency-in-circulation was recorded, with the currency in circulation rising to N2.84tn in September 2022 from N2.79tn in August. However, after the policy was implemented, the currency-in-circulation dropped significantly.
The CBN uses an accounting/statistical/withdrawals and deposits approach to compute the currency-in-circulation in Nigeria, which involves tracking the movements in currency on a transaction-by-transaction basis. For every withdrawal made by a Deposit Money Bank (DMB) at one of CBN’s branches, an increase in the currency-in-circulation is recorded. For every deposit made by a DMB at one of CBN’s branches, a decrease in the currency-in-circulation is recorded.
The CBN’s analysis of the currency-in-circulation showed that a large and increasing proportion of the naira outside the commercial banking system was held by the general public who hoard a lot of the new banknotes. This is one of the challenges that the redesign policy seeks to address.
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Despite a cash crunch and growing demand pressure, Nigeria’s Naira-dollar exchange rate has remained relatively stable across official and parallel foreign exchange markets.
The Naira has been trading at around N461 to N462 per dollar since the beginning of the year at the Investors and Exporters forex window, which is Nigeria’s official foreign exchange market. Meanwhile, at the parallel market or black market, the Naira has been trading at around N750 to N765 per dollar.
Most currency dealers who participated in Monday’s foreign exchange market auction maintained bids between N460.00 (low) and N462.43 (high) per dollar. Although the Naira has depreciated by 0.04 percent on a day-to-day trading basis, the dollar’s price has remained stable at N461.50.
At the open market last week, the Naira edged out the United States dollar, appreciating by N5 or 0.7 percent week-on-week to close at N746/USD from N751/USD in the previous week. However, the scarcity crunch continues to bite harder, causing dollar demand to take a calm in the face of scarcity.
Nigeria’s external reserves, which give the Central Bank of Nigeria (CBN) the firepower to defend the Naira, have declined to $35.74 billion as of March 24, 2023, but picked up to $36.67 billion as of Tuesday.
Despite these challenges, Bismarck Rewane, Managing Director/Chief Executive Officer of Financial Derivatives Company Limited, predicts that the Naira will strengthen to N680 per dollar this year.
Analysts at Cowry Asset Asset are predicting range-bound price action across the foreign exchange market this week.
They said, “We expect the naira to trade in a relatively calm band across various market segments this week, barring any market distortion in the face of the Naira scarcity and as the apex bank continues its weekly FX market intervention to defend the value of the naira.”
As of March 28, 2023, the dollar to naira exchange rate is 1 USD to 745 NGN at the black market. This means that for every one US dollar, you can exchange it for ₦745, Investors King reports.
This rate is subject to change depending on a variety of factors including global economic trends, political developments, and market fluctuations. However, you can buy and sell 1 USD at ₦745 and ₦739 as of the time of writing today.
What is the current exchange rate of the dollar to naira in the black market today?
According to Investors King, as of the time this report was filed, a dollar can be purchased at the Lagos parallel market (black market) for N745 and sold for N739.
Exchange Rate of Dollar To Naira in Black Market Today?
Dollar to Naira (USD to NGN)
Black Market Exchange Rate Today
Buying Rate
739
Selling Rate
745
Investors King understands that although the dollar to naira opened at N745 per $1 in the parallel market today, the Central Bank of Nigeria (CBN) does not acknowledge the parallel market, also referred to as the black market. The CBN has instructed individuals in need of forex to approach their bank as the I&E window is the sole recognized exchange.
On Tuesday, March 28th, 2023, individuals in the black market purchased one US dollar for N739 and sold it for N745. This shows that the value of the Naira has improved slightly compared to Monday, March 27th, 2023, when the local currency was exchanged at N749 and sold for N753.
To stay informed about the dollar to naira exchange rate, there are a number of reliable sources that you can turn to. Here are some tips for staying up-to-date:
Check the Central Bank of Nigeria’s website: The CBN is responsible for regulating the country’s monetary policy and is a reliable source for the latest exchange rates. You can check their website regularly for updates.
Follow financial news outlets: Financial news outlets such as Investors King, Bloomberg, Reuters, and CNBC provide regular updates on the global currency markets, including the dollar to naira exchange rate.
Use online currency converters: There are a number of online currency converters that allow you to quickly and easily check the exchange rate between the dollar and the naira.
Follow social media accounts of financial experts: Following social media accounts of financial experts such as analysts, economists, and financial advisors can give you valuable insights into the latest trends in the currency markets.
By staying informed about the dollar to naira exchange rate, you can make informed decisions when buying or selling foreign currencies. Whether you are a business owner looking to trade in foreign currencies or an individual looking to invest in the currency markets, knowledge of the latest exchange rates is key to success. Keep these tips in mind and stay informed about the latest trends in the global currency markets.
As of March 27, 2023, the dollar to naira exchange rate is 1 USD to 753 NGN at the black market. This means that for every one US dollar, you can exchange it for ₦753, Investors King reports.
This rate is subject to change depending on a variety of factors including global economic trends, political developments, and market fluctuations. However, you can buy and sell 1 USD at ₦753 and ₦749 as of the time of writing today.
What is the current exchange rate of the dollar to naira in the black market today?
According to Investors King, as of the time this report was filed, a dollar can be purchased at the Lagos parallel market (black market) for N753 and sold for N749.
Exchange Rate of Dollar To Naira in Black Market Today?
Dollar to Naira (USD to NGN)
Black Market Exchange Rate Today
Buying Rate
749
Selling Rate
753
Investors King understands that although the dollar to naira opened at N753 per $1 in the parallel market today, the Central Bank of Nigeria (CBN) does not acknowledge the parallel market, also referred to as the black market. The CBN has instructed individuals in need of forex to approach their bank as the I&E window is the sole recognized exchange.
On Monday, March 27th, 2023, individuals in the black market purchased one US dollar for N749 and sold it for N754. This shows that the value of the Naira has improved slightly compared to Thursday, March 22nd, 2023, when the local currency was exchanged at N740 and sold it for N755.
To stay informed about the dollar to naira exchange rate, there are a number of reliable sources that you can turn to. Here are some tips for staying up-to-date:
Check the Central Bank of Nigeria’s website: The CBN is responsible for regulating the country’s monetary policy and is a reliable source for the latest exchange rates. You can check their website regularly for updates.
Follow financial news outlets: Financial news outlets such as Investors King, Bloomberg, Reuters, and CNBC provide regular updates on the global currency markets, including the dollar to naira exchange rate.
Use online currency converters: There are a number of online currency converters that allow you to quickly and easily check the exchange rate between the dollar and the naira.
Follow social media accounts of financial experts: Following social media accounts of financial experts such as analysts, economists, and financial advisors can give you valuable insights into the latest trends in the currency markets.
By staying informed about the dollar to naira exchange rate, you can make informed decisions when buying or selling foreign currencies. Whether you are a business owner looking to trade in foreign currencies or an individual looking to invest in the currency markets, knowledge of the latest exchange rates is key to success. Keep these tips in mind and stay informed about the latest trends in the global currency markets.