Forex

Naira’s Steep Plunge: Eight Major Firms Declare N918.1bn Revaluation Loss

Published

3 weeks ago

November 13, 2023

In a financial rollercoaster ride, eight prominent Nigerian companies, including Dangote Cement, MTN Nigeria, and Nestle, collectively reported a revaluation loss of N918.1 billion due to the naira’s dramatic 68.55% decline against the dollar by the end of September 2023.

The Central Bank’s decision in June to let market forces determine the naira’s value saw it tumble from 461/$1 in December 2022 to 777/$1 in September 2023.

Dangote Sugar Refinery recorded a loss of N90.99 billion, citing the World Bank’s label of the naira as one of Africa’s worst-performing currencies.

Dangote Cement and Nestle also faced substantial revaluation losses of N99.02 billion and N143.4 billion, respectively.

Other affected companies include Nigerian Breweries, MTN Nigeria, MRS Oil, Seplat Energy, Airtel Africa, and Guinness Nigeria.

For companies like MTN Nigeria and Airtel Africa, the foreign exchange losses extend beyond the balance sheet.

MTN Nigeria, which reported a forex loss of N232.8 billion, acknowledged challenges in securing foreign exchange for its capital expenditure needs.

Similarly, Airtel Africa reported a foreign exchange loss after tax of $317 million (N246.31 billion), citing limited foreign currency supply within the local monetary system as a significant hindrance.

Analysts attribute these losses to foreign loans or obligations held by the companies with the naira’s devaluation significantly impacting their financial standings.

Experts noted that such losses were anticipated given the economic challenges businesses grappled with in 2023, emphasizing the impact on firms with foreign commitments or loans.

The tumultuous foreign exchange landscape and challenges in meeting foreign obligations have become recurring themes, reflecting the broader economic uncertainties of the year.

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Black Market Exchange Rate Today 10th November 2023

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Naira

Black Market Exchange Rate Today 1st December 2023

What is the Dollar to Naira exchange rate at the parallel market, known as the black market (Abokifx) today? As of December 1st, 2023, the dollar to naira exchange rate is 1 USD to 1160 NGN at the black market.

Published

24 hours ago

December 1, 2023

Investors King

What is the Dollar to Naira exchange rate at the parallel market, known as the black market (Abokifx) today? As of December 1st, 2023, the dollar to naira exchange rate is 1 USD to 1160 NGN at the black market.

This means that for every one US dollar, you can exchange it for ₦1160, 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 the 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 ₦1160 and ₦1150 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 ₦1160 and sold for ₦1150.

Exchange Rate of Dollar To Naira in Black Market Today?

Dollar to Naira (USD to NGN)	Black Market Exchange Rate Today
Selling Rate	1150
Buying Rate	1160

Central Bank of Nigeria (CBN) Naira Exchange Rates for Banks

Date	Currency	Buying(NGN)	Central(NGN)	Selling(NGN)
11/29/2023	US DOLLAR	822.762	823.262	823.762
11/29/2023	POUNDS STERLING	1044.8255	1045.4604	1046.0954
11/29/2023	SWISS FRANC	939.5478	940.1188	940.6897
11/29/2023	YEN	5.5773	5.5807	5.5841
11/29/2023	CFA	1.3496	1.3596	1.3696
11/29/2023	WAUA	1092.8802	1093.5443	1094.2085
11/29/2023	RIYAL	219.3213	219.4546	219.5879
11/29/2023	DANISH KRONA	121.203	121.2766	121.3503
11/29/2023	SDR	1097.1531	1097.8199	1098.4866
11/29/2023	YUAN/RENMINBI	115.4268	115.4969	115.5671

Investors King understands that although the dollar to naira opened at N1160 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 Friday, December 1st, 2023, individuals in the black market purchased one US dollar for N1160 and sold it for N1150. This shows that the value of the Naira declined when compared to Monday, November 27th, 2023 when the local currency was exchanged at N1155 to a Dollar and a Dollar was purchased at N1145.

To stay informed about the dollar to naira exchange rate, there are several 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.

Dollar

Dollar Sees Uptick, But November Nears Steepest Monthly Decline in a Year

Published

2 days ago

November 30, 2023

Investors King

The dollar made modest gains on Thursday, but it still faces the prospect of marking its most significant monthly decline in a year.

This trend is largely attributed to heightened speculation that the Federal Reserve will refrain from further rate hikes, a sentiment reinforced ahead of a crucial inflation report scheduled for later in the day.

The dollar index, gauging the U.S. currency against six counterparts, managed to climb 0.35% to 103.18, rebounding from Wednesday’s low of 102.46—the weakest level since August 11.

Despite this slight recovery, the index is on track to conclude November with a 3.3% slump, fueled by mounting expectations of a Fed interest rate cut in the first half of 2024.

Mohamad Al-Saraf, Associate of FX and Rates Strategy at Danske Bank, noted, “The key drivers in November for the dollar weakness have been the benign inflation data and the loosening signs of the labor market.”

Market focus intensifies as investors await the crucial Personal Consumption Expenditure (PCE) price index, the Fed’s targeted measure of inflation, scheduled for release on Thursday.

Christopher Wong, Currency Strategist at OCBC, emphasized that the PCE data would offer insights into the persistence of the disinflation trend.

As U.S. rates futures markets price in over 100 basis points of rate cuts for next year, commencing in May, the dollar’s path remains contingent on inflationary signals and cues from Federal Reserve Chair Jerome Powell’s speech on Friday.

The global economic landscape, underscored by weaker data in Germany, Spain, and France, amplifies the volatility in currency markets, leaving investors closely monitoring central bank responses.

Euro

Euro Weakens as Weak French Data Fuels Rate Cut Speculation

Published

2 days ago

November 30, 2023

Investors King

The euro faced a decline and German government bonds experienced an upswing following disappointing French economic data, intensifying speculations about potential rate cuts by the European Central Bank (ECB).

The euro exhibited a 0.4% weakening against the dollar while ten-year bund yields dropped four basis points, indicating growing anticipation of an earlier initiation of ECB interest-rate reductions in the coming year.

The Stoxx 600 index slightly receded, marking a moderate adjustment to its most impressive month since January. Concurrently, US equity futures maintained stability with minimal changes.

US Treasuries, however, experienced a brief pause in their November rally as investors awaited further signals regarding the potential timing of a shift towards rate cuts in the upcoming year.

The upcoming data on Thursday is projected to demonstrate a deceleration in the personal consumption expenditures price index, the Federal Reserve’s preferred inflation metric.

“The PCE inflation data for October is most likely going to echo what we already saw in the October CPI and PPI reports and add to the soft-landing narrative,” stated Evelyne Gomez-Liechti, a multi-asset strategist at Mizuho International Plc in London.

The French economy contracted by 0.1%, coupled with a decline in November inflation to the lowest level this year.

Markets are now pricing in a quarter-point reduction in ECB rates by April.

Investors are closely watching for signals from Fed Chair Jerome Powell’s speech on Friday, considering it a potential litmus test for market sentiment and the Fed’s stance on monetary policy.

Analysts caution against excessive optimism in the market, urging prudence in evaluating the forward curve and expecting clarity from Powell’s statements later this week.