In the wake of a growing trend, Nigerian banks are revolutionizing the way customers convert foreign currencies to naira by launching mobile applications (apps) and internet banking platforms.
This development is causing a stir in the black market trading community as the convenience and competitive rates offered by these digital services challenge the traditional methods of currency exchange.
One of the leading banks in this digital transformation is Ecobank, which provides a mobile app enabling customers to convert their dollars and other foreign currencies to naira. However, there is a daily limit of $25,000 for this service.
With just a few taps on their smartphones, customers can log in to the Ecobank Mobile App, click on the transfer option, and convert their euros, pounds, or dollars to naira, receiving instant value and competitive rates.
Zenith Bank, on the other hand, introduced an FX conversion platform called ‘FX conversions just got eazy’ on its internet banking platform. Users can seamlessly convert their dollars to naira by logging in to their Zenith Bank internet banking accounts, navigating to the forex section, and selecting the ‘Convert FX to Naira’ option.
However, this service is subject to a daily conversion limit of $10,000, in compliance with regulatory requirements.
While Standard Chartered Bank has already been offering USD to naira conversion, it is limited to the official exchange rate. Despite the availability of this feature, customers were reluctant to utilize it when the parallel market offered more favorable rates.
Standard Chartered Bank also provides 24/7 conversion services for various foreign currencies to fulfill customers’ FX needs.
In a bid to stay ahead, Access Bank and Fidelity Bank are also in the process of creating their own foreign currency conversion platforms, set to be introduced to the market soon. Access Bank, however, currently offers a product known as Glocurrency, allowing individuals residing in the UK, Europe, and Canada to send funds to Nigeria.
Funds can be received directly into an Access Bank USD account or collected as cash from any of their 500+ branches nationwide.
Stanbic IBTC provides Diaspora banking, catering specifically to Nigerians living abroad. This specialized offering enables them to send money back home, manage finances in Nigeria, save for purchasing property, invest in local denominated wealth instruments, and execute various projects.
Another major player in the banking sector, Guaranty Trust Holding Company, introduced a new foreign exchange product that allows customers to instantly convert dollars to naira through their internet banking platform.
This innovation has caused disruption in the black market, with customers now having the option to convert up to $50,000 to naira daily using GTBank’s digital service.
The introduction of these mobile apps and internet banking platforms for foreign currency conversion signifies a shift towards greater convenience and transparency in Nigeria’s banking sector.
As more banks embrace digital solutions, it is expected that black market trading will face increasing challenges, ultimately benefiting customers with more accessible and competitive exchange rates.
Naira-Dollar Exchange Rate Hits N1000/$1 Amidst Forex Scarcity Turmoil
The Nigerian naira’s exchange rate to the US dollar has remained a cause for concern as the exchange rate hovered around N1000/$1.
Earlier this week, Investors King reported that the exchange rate had weakened to N983/$1, but several social media sources indicate it reached as high as N1000/$1.
Meanwhile, on peer-to-peer (P2P) platforms, it is trading at N984 as of the latest update. Officially, the exchange rate closed at N770.7/$1 on the NIFEX window.
The Central Bank of Nigeria (CBN) had announced a plan to clear a $10 billion foreign exchange backlog within two weeks, with Acting Governor Folashodun Shonubi stating that commercial banks would play a significant role in the process.
However, liquidity issues in the market have raised doubts about the feasibility of this plan.
Operators in the forex market have reported disarray, with many licensed bureau de change operators struggling to access dollars for trading. This scarcity has led to the emergence of various exchange rates, including rates on platforms like Binance and Dubai, reflecting the market’s complexity.
Experts, speaking at a recent Nairametrics ClubHouse session, expressed skepticism about the CBN’s timeline to improve forex liquidity, emphasizing the need for a well-executed strategy rather than short-term promises.
Adding to the complexity, the exchange rate depreciation coincides with President Tinubu’s trip to New York, where he seeks foreign direct investment for Nigeria. US Deputy Secretary of Treasury Wally Adeyemo mentioned the importance of Nigeria’s macroeconomic framework to attract such investments.
As Nigeria grapples with forex scarcity, the government faces the challenge of restoring confidence in its economic stability to attract much-needed foreign investments.
Naira Declines Further as Exchange Rate Hits N980 on Black Market
Nigeria’s economic woes seem to be deepening as the Naira continues its steep decline, reaching N980 against the US Dollar on the black market.
This alarming depreciation has sent shockwaves through the nation, raising questions about the stability of the country’s financial system and the effects of Naira devaluation.
However, as the Nigerian Naira continued to decline against its global counterparts, cryptocurrency attraction surged across the country.
According to a recent report by Chainalysis, Naira devaluation in 2022 has driven cryptocurrency transaction volume to $56.7 billion year-on-year, defying the Central Bank of Nigeria’s ban on crypto-related activities in the banking sector.
While the ban, implemented in February 2021, was expected to limit cryptocurrency transactions in the country and compel Nigerians to make payments using the central bank’s channels, more Nigerians continue to jump on cryptocurrency. Making Nigeria the second-highest crypto adopter.
Commenting on the report, Chainalysis said, “These dynamics are reflected in the data. Interest in Bitcoin and stablecoins has generally risen as the Naira’s value has decreased, particularly during the most recent extremely steep drops in June and July of 2023.”
The firm attributes Nigeria’s growing crypto economy to citizens seeking to preserve the value of their savings amidst rising inflation and debt. It also points out that crypto adoption may be a solution to Nigeria’s economic challenges, which have been exacerbated by political instability, the COVID-19 pandemic, and plummeting oil prices.
As Nigeria grapples with its currency’s decline, the crypto market offers a glimmer of hope. Despite regulatory constraints, Nigerians are turning to cryptocurrencies to secure their financial future, creating a unique financial landscape where digital assets thrive in the face of traditional currency devaluation.
Naira to Dollar Black Market Exchange Rate September 21st, 2023
As of September 21st, 2023, the dollar to naira exchange rate is 1 USD to 980 NGN at the black market. This means that for every one US dollar, you can exchange it for ₦980, Investors King reports.
This digital business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.
How Much is Dollar to Naira Today in Black Market
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 ₦980 and ₦975 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 ₦980 and sold for ₦975.
Exchange Rate of Dollar To Naira in Black Market Today?
|Dollar to Naira (USD to NGN)||Black Market Exchange Rate Today|
Central Bank of Nigeria (CBN) Naira Exchange Rates for Banks
Investors King understands that although the dollar to naira opened at N980 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 Thursday, September 21th, 2023, individuals in the black market purchased one US dollar for N980 and sold it for N975. This shows that the value of the Naira declined further when compared to Wednesday, September 20th, 2023 when the local currency was exchanged at N965 to a Dollar and a Dollar was purchased at N957.
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.
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