Connect with us

Forex

Nigerian FX Market Sees 56% Drop in Transaction Value Amidst CBN Directives

Published

on

Central Bank of Nigeria (CBN)

The Nigerian Autonomous Foreign Exchange Market (NAFEM) witnessed a 56% decline in foreign exchange transaction value, according to data obtained from the FMDQ Exchange.

This sharp drop reflects the impact of recent directives issued by the Central Bank of Nigeria (CBN) aimed at regulating foreign exchange activities in the country.

The value of transactions on the FMDQ platform, which monitors NAFEM transactions, nosedived from $465.29 million on Tuesday to $203.93 million on Wednesday.

This abrupt decline underscores a noteworthy shift in FX market dynamics following the regulatory interventions by the CBN.

The CBN’s recent circulars have imposed stringent measures on banks and FX dealers, compelling them to divest excess dollar holdings and report transparent and accurate FX trading data.

While these measures aim to enhance market transparency and stability, they have triggered a tangible decrease in FX market activity.

Simultaneously, the naira faced downward pressure against the dollar, slipping by 1.4% at the parallel market to trade at N1,480/$ compared to N1,460/$ on the preceding day.

Bureau De Change operators attributed the consistent rise in the dollar’s value to heightened demand for the greenback, further exacerbating the naira’s depreciation.

The official market also reflected a weakening naira against the dollar, as evidenced by data from the FMDQ Exchange website.

Amidst these developments, market participants closely monitor the evolving FX landscape, navigating through regulatory changes and economic dynamics impacting currency valuations and market liquidity.

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

Dollar to Naira Black Market Today, February 23rd, 2024

As of February 23rd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,610 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

on

Naira Dollar Exchange Rate - Investors King

As of February 23rd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,610 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 N1,650 and sell it at N1,640 on Thursday, February 22nd, 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: N1,610
  • Selling Rate: N1,600

Continue Reading

Naira

Naira Appreciates Slightly to N1,542.58/$ at NAFEM

Published

on

New Naira notes

The Naira appreciated marginally against the United States dollar, closing at N1,542.58/$ at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday.

This modest gain represents a 2.9 percent appreciation from the previous day’s rate of N1,598.54, highlighting a nuanced fluctuation in the currency’s value.

According to data sourced from the FMDQ Securities Exchange, a platform overseeing FX trading in Nigeria, the Naira’s journey throughout the trading day was marked by an intra-day high of N1,755 and a low of N1,050.

Moreover, the total foreign exchange turnover surged to $172.14 million, indicating a 47 percent increase from the previous day.

Despite the Naira’s marginal gain at NAFEM, concerns persist regarding the widening gap between the official and parallel market rates.

The Naira’s depreciation to N1,900 against the dollar in the parallel market before it moderated to N1,687 later in the day.

Analysts and Bureau De Change operators foresee further pressure on the Naira, with predictions of a potential all-time low of 2,000/dollar at the parallel market in the coming weeks.

The demand for the greenback continues to fuel volatility, prompting regulatory actions from entities like the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to curb speculative activities.

As stakeholders monitor the currency’s trajectory, the CBN’s efforts to address forex liquidity challenges and stabilize the Naira remain under scrutiny amidst evolving market dynamics.

Continue Reading

Forex

Police and EFCC Personnel Raid Bureau De Change Outlets in Ibadan’s Sabo Area

Published

on

Bureau De Change Operator

In a concerted effort to curb illicit currency dealings and stabilize the nation’s currency, Nigerian security operatives, including police and Economic and Financial Crimes Commission (EFCC) personnel, launched a raid on Bureau De Change (BDC) outlets in Ibadan’s Sabo area.

Sabo, a prominent district in Ibadan, the capital of Oyo State, serves as a central hub for currency exchange activities in the region.

Videos circulated on social media platforms captured the dramatic scene as armed security personnel and their convoy descended on the bustling Sabo Road.

The raid comes amidst growing concerns over the depreciation of the Nigerian naira, which hit record lows against major foreign currencies, including the dollar.

Sources revealed that the naira’s value reached alarming levels, with exchanges as high as N1980 to $1 on the parallel market and N1780 on the official market.

President Bola Tinubu’s administration has intensified efforts to crack down on individuals involved in currency racketeering, aiming to restore stability to the nation’s economy.

The clampdown signals a firm stance against illegal currency trading and serves as a deterrent to those engaging in speculative activities.

While the raids may disrupt illicit operations, they also underscore the government’s commitment to restoring confidence in the financial sector and promoting transparency in currency exchange practices.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending