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Naira Deteriorates 55% in 2023, Marking Worst Year in Two Decades

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Nigeria’s naira is poised for its worst year since the return on democracy in 1999, with analysts predicting further depreciation in 2024.

The naira plunged 55% this year to 1,043 per dollar as of Thursday, making it the world’s worst performer after the Lebanese pound and the Argentine peso among 151 currencies tracked by Bloomberg. And that’s in the official market. On the streets, the currency trades at 1,208 naira per dollar.

Foreign reserves in Africa’s biggest crude producer are at the lowest in six years with most of them encumbered by overdue short-term overseas obligations.

Unless President Bola Tinubu’s government lures international investors or ramps up oil output, the naira may slip further, according to Vetiva Capital Management Ltd. In the non-deliverable forwards market, the naira’s 12-month contract are trading near a record low of 1,294.44 to the dollar.

“It’s clear that further devaluation — alongside tighter monetary policy — is needed to reduce imbalances in the FX market,” said Patrick Curran, a senior economist at Tellimer Ltd.

The depreciation began after the central bank allowed the currency to trade more freely in June, and Tinubu scrapped costly petrol subsidies. That — combined with the weakening naira — has fueled inflation, which is at 28.2%, while the benchmark interest rate is at 18.75%. The negative real interest rate has dissuaded overseas investors.

“A significant rise in external reserves, material increase in foreign exchange inflows, and reduction in money supply,” will be positive for the naira, Vetiva Capital said in a note to clients.

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Naira

Black Market Dollar (USD) to Naira (NGN) Exchange Rate Today 23rd May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 23rd, 2024 stood at 1 USD to ₦1,500.

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The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 23rd, 2024 stood at 1 USD to ₦1,500.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,470 and sold it at ₦1,460 on Wednesday, May 22nd, 2024.

This indicates a decline in the Naira exchange rate when compared to today’s 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 the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

  • Buying Rate: ₦1,500
  • Selling Rate: ₦1,490

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.

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Naira

Naira Loses 1.47% Against Dollar, Hits N1,500 on Black Market

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New Naira notes

The Nigerian naira faced a downturn on Wednesday against the US dollar as the local shed 1.47 percent at the black market to N1,500 per dollar.

This development comes hot on the heels of the Central Bank of Nigeria’s (CBN) decision to raise its monetary policy rate (MPR) by 150 basis points to 26.25 percent.

Just a day prior, the naira had exhibited resilience against the dollar following a two-day of gains that brought it down from its recent peak of N1,530 on May 14, 2024.

The CBN’s move to raise the interest rate was met with anticipation and speculation across financial markets, and its impact on the naira’s value became evident soon after.

Traders at the black market reported a noticeable surge in demand for the dollar, albeit with limited availability in substantial quantities, exacerbating the currency’s depreciation.

Contrastingly, at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, the naira experienced a slight uptick, appreciating marginally by 0.23 percent.

The dollar was quoted at N1,465.68 compared to N1,468.99 recorded on Monday, as per data from the FMDQ Securities Exchange Limited.

During trading on Tuesday, the intraday high closed at N1,549 per dollar, displaying strength compared to the previous day’s closure of N1,556.

However, the intraday low remained stable at N1,401 per dollar, mirroring Monday’s rate of N1,400.

Market activity reflected a significant surge in the daily foreign exchange turnover, soaring by 66.14 percent to $268.17 million on Tuesday from the previous day’s $161.41 million, indicating heightened trading activity and increased demand for foreign currency.

The fluctuating dynamics in the currency market underscore the delicate balance between domestic economic policies and external market forces, with investors and traders closely monitoring developments for potential implications on trade and investment strategies.

As the naira navigates through these fluctuations, stakeholders remain vigilant, seeking opportunities and mitigating risks in the ever-evolving financial landscape.

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Black Market Dollar to Naira Exchange Rate Today 22nd May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 22nd, 2024 stood at 1 USD to ₦1,470.

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Naira Dollar Exchange Rate - Investors King

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 22nd, 2024 stood at 1 USD to ₦1,470.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,480 and sold it at ₦1,470 on Tuesday, May 21st, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s 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 the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

  • Buying Rate: ₦1,470
  • Selling Rate: ₦1,460

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.

Continue Reading
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