Naira

Insider Abuse and Hoarding Blamed as Citizens Struggle to Withdraw Cash From Nigerian Banks

Published

5 months ago

December 18, 2023

As the festive season approaches, Nigeria grapples with a cash scarcity crisis as many citizens struggle to access sufficient funds for their holiday expenditures.

The shortage has been attributed to a combination of insider abuse within banks and hoarding practices by the public.

Despite assurances from the Central Bank of Nigeria (CBN) regarding the ample stock of currency notes in the country, Point of Sale (PoS) operators find themselves resorting to unconventional means to obtain cash.

Some PoS operators are reported to be purchasing cash from traders and petrol station attendants to supplement their withdrawals from banks.

Insider abuse within the banking sector has been identified as a significant contributor to the ongoing cash scarcity.

Racketeering within banks involves individuals paying exorbitant amounts, such as N36,000 for freshly minted notes worth N20,000, and N63,000 for N50,000.

This practice occurs openly, facilitated by Point of Sale (PoS) machines for those unable to transfer funds easily.

Sources within the banking industry allege collusion between CBN staff and security agencies, further exacerbating the cash shortage issue.

The central bank has previously noted that Nigerians are hoarding cash due to concerns about potential government actions related to the naira redesign program.

However, the Supreme Court’s ruling and CBN’s statement affirming the legal tender status of both old and redesigned naira banknotes seem to have failed to alleviate public anxiety.

The scarcity echoes a similar crisis experienced in the first quarter of the year following the redesign of certain denominations, causing a loss of trust and confidence in the banking sector, according to FSDH Research.

As PoS operators limit cash disbursements, the situation is expected to impact the adoption of digital payment channels, increase cash hoarding, and potentially raise the cost of goods and services in the informal economy.

The shortage also reflects in a decline in banks’ deposits with the CBN and an increase in borrowing, suggesting a complex financial landscape that demands prompt attention and regulatory intervention.

The CBN, while emphasizing sufficient currency stock, urges the public against panic withdrawals.

However, the reasons behind the cash crunch—whether attributed to the previously set deadline for old notes or increased spending ahead of the festive season—underscore the need for comprehensive solutions to ensure financial stability and meet the cash demands of the Nigerian populace.

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Black Market Exchange Rate Today 1st December 2023

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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

8 hours 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

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

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

18 hours 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.

Black Market Dollar to Naira Exchange Rate

Buying Rate: N1,350
Selling Rate: N1,340

Naira

Dollar to Naira Black Market Today, April 30th, 2024

As of April 30th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,340 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

3 days ago

April 30, 2024

Samed Olukoya

As of April 30th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,340 NGN in the black market, also referred to as the parallel market or Aboki fx.

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.