Forex

Naira Falls at Official Market, CBN Supplies $180m

Published

7 years ago

March 21, 2017

Samed Olukoya

500 and 1000 naira bills (Nigerian currency)

Naira Falls at Official Market, CBN Supplies $180m

The naira extended its declines at the official market on Monday, falling to 307.5 against the United States dollar.

The local currency closed at 307 to a dollar last week at the official market from the 305.50 level it had traded since last year. It was quoted at 445 at the black market, firmer than the 450 a dollar it closed on Friday.

The Central Bank of Nigeria on Monday said it offered a total of $180m to meet bids for forwards, which includes requests for invisibles such as medicals, school fees and personal travel allowances valued at $80m, through the interbank window.

The Acting Director, Corporate Communications Department, CBN, Isaac Okorafor, said the wholesale requests would be settled on Tuesday (today), adding that the closing interbank rate was N307.5/$1.

Okorafor said with the fresh forex supply, naira should further strengthen in the foreign exchange market in the days to come.

He said the CBN had so far met all the legitimate demands from genuine customers, and would ensure sustainable forex liquidity and transparency in the process to enable as many customers as possible to get access to forex.

Okorafor advised eligible individuals with genuine foreign currency needs to freely approach their banks and authorised dealers with their request, stressing that the CBN had made adequate provisions of foreign currency for all such legitimate purposes.

The Chief Executive Officer, Cowry Asset Management Limited, Mr. Johnson Chukwu, said the depreciation of the naira at the official market might be part of the CBN’s effort to narrow the gap between the official and parallel market rates and achieve a market-reflective exchange rate.

“The central bank could adopt an intentional strategy to allow the naira to depreciate at the official window of the market, even as the parallel market is appreciating, to reduce the spread between the two markets and achieve a more market-reflective exchange rate,” he said.

A currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, said a true price discovery may not happen as quickly as one would have expected.

“The idea is that once they are able to fight the parallel market, they will want to allow the official market to depreciate and again reflect the market position.”

He said the 305 at which the naira was trading before now was a managed rate.

Ezun said, “It is only when you have that interplay between demand and supply that you begin to see a rate that reflect the market. So, that may begin to happen but it may not be as fast as one would have expected.

“But gradually, with confidence coming back to the market and the appreciation that we have started seeing in the parallel market, then we will begin to see a level of competitiveness in the official market.”

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Samed Olukoya

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.

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Naira

Dollar to Naira Black Market Exchange Rate Today 4th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 4th, 2024 stood at 1 USD to ₦1,400.

Published

11 hours ago

May 4, 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 4th, 2024 stood at 1 USD to ₦1,400.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,380 and sold it at ₦1,370 on Friday, May 3rd, 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: ₦1,400
Selling Rate: ₦1,390

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

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

2 days 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

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

2 days 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.