Connect with us

Naira

JP Morgan Predicts Naira Valued at N850/$ by Year-End as Policy Actions Take Effect

Published

on

JPMorgan - Investors King

JP Morgan, the prominent global financial services company headquartered in the United States, has released a significant forecast suggesting that the value of the Nigerian naira could appreciate to N850 per U.S. dollar by December 2023, specifically within the Investors’ and Exporters’ Forex window.

The US-based bank underscored that this prediction is contingent on the ongoing efforts to uphold a flexible foreign exchange (FX) regime in Nigeria and the introduction of more stringent monetary conditions.

These endeavors, according to JP Morgan, may contribute to sustaining the nascent progress towards a more flexible FX market.

The interbank FX rate in Nigeria recently rose to over 900, up from 750, thereby significantly narrowing the gap with the parallel market rate, which currently hovers slightly above 1,000 naira per dollar.

JP Morgan anticipates that the USD/NGN exchange rate will gradually decrease towards 850 by the end of the year. The bank attributes this projected decline to the combination of tighter monetary policies, more appealing interest rates, and favorable FX levels.

These factors may discourage incremental dollarization while potentially attracting foreign capital into the Nigerian market.

JP Morgan has recommended additional policy actions to further stabilize the foreign exchange market.

These measures include enforcing regulatory limits on FX net open positions for commercial banks and exploring the introduction of a cash reserve ratio on FX deposits. The issuance of dollar-denominated assets onshore is also suggested.

On the fiscal front, JP Morgan advises the Nigerian government to mandate all taxes to be paid in the local currency.

These recommendations, the bank suggests, may already be part of the Federal Government’s forthcoming revision of guidelines governing the forex market’s operations.

Moreover, JP Morgan urges oil-exporting companies to consider selling their foreign exchange proceeds on the interbank market rather than directly to the Central Bank of Nigeria, a move that could enhance liquidity and stability.

Finally, the bank highlights concerns about the willing buyer-willing seller nature of the foreign exchange market, citing its contribution to extreme volatility.

JP Morgan recommends a reconsideration of this approach, suggesting that it impedes price discovery and could be adjusted for more effective regulation.

 

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.

Continue Reading
Comments

Naira

Black Market Dollar to Naira Exchange Rate Today, March 1st, 2024

As of March 1st, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,530 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

on

Naira Exchange Rates - Investors King

As of March 1st, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,530 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 N1,480 and sell it at N1,470 on Thursday, February 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.

Black Market Dollar to Naira Exchange Rate

  • Buying Rate: N1,530
  • Selling Rate: N1,520

Continue Reading

Naira

Black Market Dollar to Naira Exchange Rate Today, February 29th, 2024

As of February 29th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,480 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

on

NAIRA - Investors King

As of February 29th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,480 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 N1,600 and sell it at N1,590 on Wednesday, February 28th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate improved 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: N1,480
  • Selling Rate: N1,470

Continue Reading

Naira

Black Market Dollar to Naira Exchange Rate Today, February 28th, 2024

As of February 28th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,600 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

on

New Naira notes

As of February 28th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,600 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 N1,530 and sell it at N1,520 on Tuesday, February 27th, 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: N1,600
  • Selling Rate: N1,590

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending