Forex

Nigeria Records $24.7bn Forex Inflow in Three Months

Published

6 years ago

June 4, 2018

Nigeria Records $24.7bn Forex Inflow in Three Months

The Nigerian economy recorded a total foreign exchange inflow of $24.71bn, figures obtained from the Central Bank of Nigeria have revealed.

The apex bank said the inflow was recorded as a result of the continued stability in the foreign exchange market promoted by improved dollar liquidity at the Investors’ and Exporters’ window of the market.

This, according to findings, has been driving the exchange rates towards convergence at all segments of the market.

Investigations by our correspondent revealed that out of the $24.71bn, funding from the CBN was estimated at $8.81bn, representing 28.5 per cent of the total inflow.

It was gathered that autonomous sources accounted for the larger balance of $15.91bn, representing 71.5 per cent of the total.

Finance and economic experts, who spoke on the foreign exchange inflow, said that the demand management policy of the Federal Government was responsible for the inflow.

They, however, said while the current administration had made remarkable progress in the area of reducing inflation and increasing external reserves, its performance in the area of job creation, poverty reduction and economic diversification was below average.

Speaking on the development, a professor of finance and Head, Banking and Finance Department, Nasarawa State University, Uche Uwaleke, said, “The recent measure by the CBN with respect to forex management is chiefly aimed at narrowing the wide gap between the official and parallel market rates as well as improving access to forex for Personal Travel Allowance and payment of school fees abroad.

“I am sure that the CBN is under no illusion that the tiered exchange rates which this forex policy has brought about will halt the slide in the value of the naira.

“While admitting that a complete currency float is capable of unifying rates and reducing round tripping and speculative activities, toeing such a path will be suicidal for an import-dependent economy that depends on a single commodity for much of its forex inflows.”

He said to strengthen the rate of exchange between the naira and the dollar, there was a need for well-coordinated fiscal policies to pursue import substitution and enhance the competitiveness of local production with a view to curtailing forex demand.

He said, “The government should fast-track efforts to improve the ease of doing business and the state of infrastructure in order to attract foreign investments as well as develop multiple streams of earning foreign exchange.”

Also, a former Managing Director, Unity Bank Plc, Mr. Rislanudeen Mohammed, said the problem of exchange rate which the current administration met when it assumed office in 2015 had yet to be fully addressed.

He said, “The government met two major challenges when it assumed office in 2015. The first is the issue of foreign exchange and the second is petroleum subsidy, which is a major issue that has yet to be resolved.

“After the recession, the economy trajectory has been showing positive signs even though the growth rate has been shaky. Fourth quarter GDP growth rate was 2.11 per cent while we have a contraction to 1.95 per cent in the first quarter.

“If you look at the growth trajectory, we are growing but it’s shaking. Inflation is going down; reserves are improving; but we have the problem of rising unemployment, which the government is yet to deal with despite all the talk about the N-Power programme.”

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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

Black Market Dollar to Naira Exchange Rate Today 17th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Published

2 days ago

May 17, 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 17th, 2024 stood at 1 USD to ₦1,540.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,560 and sold it at ₦1,550 on Thursday, May 16th, 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: ₦1,540
Selling Rate: ₦1,530

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.

Forex

SEC and ABCON Explore Collaboration for ‘Kolectyomoni’ Digital Currency Platform

Published

2 days ago

May 17, 2024

Samed Olukoya

The Association of Bureaux De Change Operators of Nigeria (ABCON) has initiated talks with the Securities and Exchange Commission (SEC) to explore collaboration on its upcoming digital currency market platform, ‘Kolectyomoni’.

This move was underscored during an official visit by ABCON representatives to the newly appointed Director General of the SEC, Dr. Timi Agama. Aminu Gwadabe, President of ABCON, conveyed the association’s eagerness to engage with SEC to ensure the smooth operation of its digital currency platform.

Gwadabe emphasized that ABCON recognizes the regulatory oversight of SEC in the financial sector and seeks its guidance to navigate the complexities of the digital currency market.

He pointed out that while digital currencies hold immense potential for financial inclusion and innovation, they also present regulatory challenges that require collaborative efforts between industry stakeholders and regulatory bodies.

Highlighting the significance of embracing digital currencies, Gwadabe noted, “The future of BDC’s business is digital currency.”

He stressed the growing adoption of digital currencies among Nigerians, citing statistics that reveal a rising number of participants in the digital currency ecosystem, with a substantial market size of $9 billion annually.

In response, Dr. Timi Agama expressed SEC’s openness to support and facilitate the growth of the digital currency sector in Nigeria.

He acknowledged ABCON’s initiative in launching the ‘Kolectyomoni’ platform and assured of SEC’s cooperation in providing regulatory guidance and oversight.

Agama reaffirmed SEC’s commitment to fostering innovation in the financial sector while ensuring investor protection and market integrity.

He underscored the importance of collaboration between regulators and industry players to develop robust frameworks that foster innovation and safeguard against potential risks.

Furthermore, Agama encouraged ABCON to finalize the development of the ‘Kolectyomoni’ digital currency platform and submit it to the SEC for thorough review and assessment by the technical team.

He emphasized the need for timely regulatory oversight to address emerging trends in the digital currency market and maintain regulatory compliance.

Naira

Black Market Dollar to Naira Exchange Rate Today 16th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Published

3 days ago

May 16, 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 16th, 2024 stood at 1 USD to ₦1,560.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,530 and sold it at ₦1,520 on Wednesday, May 15th, 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.