Forex

Nigeria Implements Bold Reforms, Unifies Forex Market for Enhanced Stability

Central Bank of Nigeria unified foreign exchange rates in a historic move

Published

11 months ago

June 14, 2023

In a historic move, the Central Bank of Nigeria (CBN) announced the implementation of a unified foreign exchange window, marking a paradigm shift in the country’s foreign exchange landscape.

Under the new framework, all segments of the forex market have been collapsed into a single entity, the Investors and Exporters (I&E) window. This consolidation replaces the previous system of multiple windows catering to specific transaction types, bringing about a more streamlined and efficient market structure.

One of the most significant changes is the adoption of a market-driven exchange rate system. Gone are the days of a fixed exchange rate, as the value of the Naira will now be determined by the forces of supply and demand within the I&E window.

Furthermore, the reintroduction of the “Willing Buyer, Willing Seller” model within the I&E window offers greater flexibility and choice to eligible transactions. Participants can now transact at their preferred exchange rates, fostering an environment of transparency and fair pricing.

The reforms also address the issue of government-related transactions. The CBN will set the operational rate for such transactions based on the weighted average rate of the previous day’s executed transactions within the I&E window. This measure aims to provide stability and predictability, instilling confidence in both domestic and international investors.

The lifting of trading limits on oversold FX positions and the permission to hedge short positions with Over-The-Counter (OTC) futures mark a significant shift in risk management practices. Market participants now have more freedom to manage their currency portfolios, which is expected to attract more foreign investment and promote market liquidity.

To ensure transparency and efficient execution, the reintroduction of order-based two-way quotes, with a fixed bid-ask spread of N1, brings clarity to buying and selling prices. All transactions will be cleared by a Central Counter Party (CCP), enhancing market integrity and reducing counterparty risks.

In a bold move to enhance transparency, an Order Book will be reintroduced. This will enable market participants to have clear visibility of orders, facilitating seamless execution and further bolstering confidence in the market.

Alongside these transformative measures, the CBN has decided to cease two schemes aimed at boosting remittances and forex supply, namely the RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme. This strategic decision aligns with the overall restructuring of the forex market and ensures a cohesive and comprehensive approach to reform.

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Samed Olukoya

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

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

1 day 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

3 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.