Forex

Nigerian Banks Introduce Mobile Apps and Internet Banking for Foreign Currency Conversion, Disrupting Black Market Trading

Banks Embrace Digital Transformation: Mobile Apps and Internet Banking Disrupt Foreign Currency Exchange, Challenging Black Market Trading

Published

10 months ago

July 12, 2023

Investors King

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.

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Forex

Yen Hits 34-Year Low Against Dollar Despite Bank of Japan’s Inaction

Published

2 days ago

April 26, 2024

Samed Olukoya

The Japanese yen plummeted to a 34-year low against the US dollar, sending shockwaves through global financial markets.

Despite mounting pressure and speculation, the Bank of Japan (BOJ) chose to maintain its key interest rate.

The yen’s relentless slide, extending to 0.7% to 156.66 against the dollar, underscores deep concerns about Japan’s economic stability and the efficacy of its monetary policies.

BOJ Governor Kazuo Ueda’s remarks at a post-meeting news conference did little to assuage fears as he acknowledged the impact of foreign exchange dynamics on inflation but downplayed the yen’s influence on underlying prices.

Investors, already on edge due to the yen’s dismal performance this year, are now bracing for further volatility amid speculation of imminent intervention by Japanese authorities.

The absence of decisive action from the BOJ has heightened uncertainty, with concerns looming over the potential repercussions of a prolonged yen depreciation.

The implications of the yen’s decline extend far beyond Japan’s borders, reverberating across global markets. The currency’s status as the worst-performing among major currencies in the Group of Ten (G-10) underscores its significance in the international financial landscape.

Policymakers have issued repeated warnings against excessive depreciation, signaling a commitment to intervene if necessary to safeguard economic stability.

Finance Minister Shunichi Suzuki reiterated the government’s readiness to respond to foreign exchange fluctuations, emphasizing the need for vigilance in the face of market volatility.

However, the lack of concrete action from Japanese authorities has left investors grappling with uncertainty, unsure of the yen’s trajectory in the days to come.

Market analysts warn of the potential for further downside risk, particularly in light of upcoming economic data releases and the prospect of thin trading volumes due to public holidays in Japan.

The absence of coordinated intervention efforts and a clear policy stance only exacerbates concerns, fueling speculation about the yen’s future trajectory.

The yen’s current predicament evokes memories of past episodes of currency turmoil, prompting comparisons to Japan’s intervention in 2022 when the currency experienced a similar downward spiral.

The prospect of history repeating itself looms large, as market participants weigh the possibility of intervention against the backdrop of an increasingly volatile global economy.

As Japan grapples with the yen’s precipitous decline, the stakes have never been higher for policymakers tasked with restoring stability to the currency markets. With the world watching closely, the fate of the yen hangs in the balance, poised between intervention and inertia in the face of unprecedented challenges.

Naira

Dollar to Naira Black Market Today, April 25th, 2024

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

3 days ago

April 25, 2024

Samed Olukoya

Naira to Dollar Exchange- Investors King Rate - Investors King

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 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 N1,260 and sell it at N1,250 on Wednesday, April 24th, 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.

Black Market Dollar to Naira Exchange Rate

Buying Rate: N1,300
Selling Rate: N1,290

Naira

Dollar to Naira Black Market Today, April 24th, 2024

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

3 days ago

April 24, 2024

Samed Olukoya

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 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 N1,250 and sell it at N1,240 on Tuesday, April 23rd, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined slightly 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.