Naira

Speculation Rises Over Impending Naira Devaluation Following Removal of Policy Chief

The Nigerian naira is under intense scrutiny as financial analysts delve into the likelihood and potential impact of an imminent devaluation.

Published

11 months ago

June 13, 2023

Investors King

The Nigerian naira is under intense scrutiny as financial analysts delve into the likelihood and potential impact of an imminent devaluation.

The heightened speculation follows the unexpected removal of policy chief Emefiele on Friday, whose unorthodox measures aimed at supporting the naira and limiting foreign exchange access for imports have been called into question.

Over the past few weeks, the Nigerian currency has experienced a tumultuous decline, plunging to an unprecedented low before finally stabilizing at 471.80 per dollar on Monday. In the wake of this volatility, experts and economists are diligently examining the consequences of Emefiele’s departure and the far-reaching effects it could have on the naira’s future.

Bloomberg reported on Monday that since the election of President Bola Tinubu in February, speculation regarding a potential devaluation has been on the rise. Tinubu, who pledged to review and optimize the naira system, promptly removed Emefiele, further fueling the speculations.

Nigeria, Africa’s largest economy, currently operates a multiple exchange rate regime, with the official rate tightly controlled, leading to heightened demand on the black market, Investors King reports.

Economists and money managers have been quick to share their insights on Emefiele’s removal and its potential implications for the naira.

Patrick Curran, a senior economist at Tellimer in London, believes that the removal of Emefiele is a necessary step towards establishing a functioning monetary policy and exchange rate regime, which will be favorably received by the markets.

However, the form and extent of the exchange rate adjustment remain uncertain. Curran raises questions about whether the adjustment will be significant enough to clear the market and whether it will continue to float or be a one-time devaluation, which could result in the reemergence of imbalances.

Mark Bohlund, a senior credit research analyst at REDD Intelligence, expresses his dissatisfaction with the Central Bank of Nigeria’s policymaking under Emefiele, stating that he expects a devaluation to occur in the next six months, specifically in the second half of 2023, once the inflationary effects of reducing fuel subsidies have subsided. Bohlund predicts a devaluation to reach a range of NGN 650-700/USD.

Bojosi Morule, an economist at Goldman Sachs International in London, sees Emefiele’s suspension as an indicator of a significant policy shift, following the transition from the previous administration. Morule identifies the overvalued naira and the multiple exchange rate regime as key negative factors for the macroeconomic environment and investment.

With the change in leadership at the Central Bank of Nigeria, Morule believes that the probability of a near-term devaluation of the naira has increased, especially considering Tinubu’s preference for a “unified exchange rate.”

Thys Louw, a portfolio manager at asset manager Ninety One in London, commends President Tinubu for his proactive approach to address two critical concerns for investors: fuel subsidies and foreign exchange reform. Louw suggests that Emefiele’s removal, seen as an obstacle to FX reform, is a positive step towards implementation.

While Louw does not anticipate a substantial change in Nigeria’s credit position due to bonds already factoring in some reform momentum, the move does indicate the potential for continued outperformance.

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Naira

Dollar to Naira Black Market Exchange Rate Today 4th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 4th, 2024 stood at 1 USD to ₦1,400.

Published

2 days ago

May 4, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 4th, 2024 stood at 1 USD to ₦1,400.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,380 and sold it at ₦1,370 on Friday, May 3rd, 2024.

This indicates a decline in the Naira exchange rate compared to the current 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 black market

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

Buying Rate: ₦1,400
Selling Rate: ₦1,390

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.

Naira

Black Market Dollar Rate Reaches ₦1,380 Today, May 3rd, 2024

US dollar to Nigerian Naira exchange rate as of May 3rd, 2024 at the black market stood at 1 USD to ₦1,380

Published

3 days ago

May 3, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 3rd, 2024 stood at 1 USD to ₦1,380.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,350 and sold it at ₦1,340 on Thursday, May 2nd, 2024.

This indicates a decline in the Naira exchange rate compared to the current 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 black market

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

Buying Rate: ₦1,380
Selling Rate: ₦1,370

Naira

Dollar to Naira Black Market Today, May 2nd, 2024

As of May 2nd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,350 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

4 days ago

May 2, 2024

Samed Olukoya

As of May 2nd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,350 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 N1,310 and sell it at N1,300 on Monday, April 29th, 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.