Forex

CBN Permits International Oil Companies to Inject Liquidity into Foreign Exchange Market

This decision aims to inject liquidity into the Investors & Exporters (I&E) foreign exchange market, according to a reliable source familiar with the matter.

Published

10 months ago

July 6, 2023

Investors King

In a significant move to address the liquidity crunch in Nigeria’s foreign exchange market, the Central Bank of Nigeria (CBN) has granted permission to International Oil Companies (IOCs) to resume the sale of US dollars to banks.

This decision aims to inject liquidity into the Investors & Exporters (I&E) foreign exchange market, according to a reliable source familiar with the matter.

The lifting of the restriction on IOCs selling dollars to dealing member banks is expected to alleviate the existing backlog of US dollar demand and provide a boost to the Investors & Exporters window.

The move signifies a departure from the policies of the previous governor, Godwin Emefiele, as the CBN’s acting governor, Folashodun Shonubi, works to implement reforms and deliver on President Bola Tinubu’s mandate for monetary policy house cleaning.

Previously, Nigeria’s currency, the naira, was subjected to a hard currency peg, draining dollars from the economy and unsettling investors.

However, the CBN’s decision to float the naira ended the peg and initiated reforms that aimed to increase the supply of dollars. The value of the naira plummeted by over 60 percent in response to this long-overdue reform.

In a positive sign, the naira experienced a 1.2 percent gain at the I&E window following the recent developments. The foreign exchange turnover also witnessed a notable increase of 20 percent, reaching $89.37 million compared to the $73.86 million worth of trades recorded on the previous trading day.

The CBN’s focus on bolstering dollar supply is crucial in alleviating the pressure on the naira and stabilizing the foreign exchange market. By allowing IOCs to resume the sale of US dollars to banks, the central bank aims to facilitate smoother transactions and provide businesses and individuals with greater access to foreign currency.

This recent policy shift reflects the determination of Nigeria’s new leadership to prioritize economic stability and address the challenges facing the foreign exchange market.

While the road to complete recovery may be long, these developments signify a step in the right direction, bringing hope for a more balanced and thriving economy.

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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

10 hours 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

2 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

2 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.