Naira

Total Amount of Naira in Circulation Falls by 53 Percent as Cash Crunch Worsens in Nigeria

Published

1 year ago

February 20, 2023

Naira Dollar Exchange Rate - Investors King

The latest data from the Central Bank of Nigeria (CBN) has revealed that total amount of currency-in-circulation has fallen by 53.33 percent since October last year to January, this year.

The data, contained in a report presented by the CBN Deputy Governor, Folashodun Shonubi, at a forum in Abuja, indicated that the cash in circulation decreased from N3.3 trillion to N1.54 trillion.

It was gathered that the 53.33 decrease in the cash within the public space was due to Nigerians’ high compliance to the order by CbN for bank customers to deposit their old N1000, N500 and N200 notes before the bank’s February 10, 2023 controversial deadline.

Bank customers had thronged commercial banks with the old notes and deposited them with the expectation that the new notes would be within their reach.

Investors King had reported the anguish, pain and hardship that majority of Nigerians are passing through following the scarcity of the new redesigned currency.

The biting shortage of the new naira notes has severely affected commercial activities across the country as small and medium-scale business owners have been lamenting low sales while some have closed up their businesses including Point of Sales operators.

The CBN Governor, Godwin Emefiele, had said one of the objectives of the naira design policy was to mop up currency outside the bank vaults which he put at N2.7tn. He had said with such a huge amount outside the banking system, it would be difficult for monetary policy initiatives to impact the economy.

While citizens lament hardship caused by the naira redesign policy, President Muhammadu Buhari, in an attempt to reduce the problem in getting the naira, had ordered CBN to re-circulate the old N200 notes to the public, and declared that the old N500 and N1,000 banknotes were no longer legal tender in the country.

Since the President gave the new order concerning the N200 old notes, bank customers have complained that the old notes was yet to be released to them.

Customers were seen crowding banks for naira even as some banks remain shut

It could be recalled that some state governors had directed their residents to continue spending the old notes in line with an order of the Supreme Court.

But checks revealed that traders and transporters in several states across the country have insisted on collecting only new naira notes and old N200 note in line with the directive of President Buhari.

Some traders and commercial transporters have been rejecting bank transfer even as online transactions have been problematic for Nigerians.

Many Nigerians have lamented hitches in transacting online as they said that their transactions have not been successful while others use fake alerts for unsuspecting traders.

In the midst of the crisis, Nigerians continue to throng the apex bank to return their old notes while others hold on to theirs with the hope that the Supreme Court judgment would win and ordered the usage of the old currency.

Financial experts have called on the Federal Government to do more in assaulting the suffering of the masses, saying the N200 old notes order could be helpful if it’s made available.

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Naira

Dollar to Naira Black Market Today, April 25th, 2024

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

3 days ago

April 25, 2024

Samed Olukoya

Naira to Dollar Exchange- Investors King Rate - Investors King

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 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 N1,260 and sell it at N1,250 on Wednesday, April 24th, 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: N1,300
Selling Rate: N1,290

Naira

Dollar to Naira Black Market Today, April 24th, 2024

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

3 days ago

April 24, 2024

Samed Olukoya

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 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 N1,250 and sell it at N1,240 on Tuesday, April 23rd, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined slightly 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: N1,260
Selling Rate: N1,250

Naira

Nigeria’s Naira Dips 5.3% Against Dollar, Raises Concerns Over Reserve Levels

Published

4 days ago

April 24, 2024

Samed Olukoya

Nigerian Naira depreciated by 5.3% against the US dollar as concerns over declining foreign reserves raise questions about the central bank’s ability to sustain liquidity.

The local currency has now declined for the third consecutive day since the Naira retreated from its three-month high on Friday shortly after Bloomberg pointed out that the Naira gains were inversely proportional to foreign reserves’ growth.

According to data from Lagos-based FMDQ, the naira’s value dropped precipitously, halting its recent impressive performance.

The unofficial market saw an even steeper decline of 6%, extending the currency’s retreat over the past three trading days to a staggering 17%.

Abubakar Muhammed, Chief Executive of Forward Marketing Bureau de Change Ltd., expressed concerns over the sharp decline, highlighting the insufficient supply of dollars in the market.

Muhammed noted that despite a 27% increase in traded volume at the foreign exchange market on Monday, the supply remained inadequate, forcing the naira to soften further while excess demand shifted to the unofficial market.

The dwindling foreign exchange reserves have been a cause for alarm, with Nigeria’s gross dollar reserves steadily declining for 17 consecutive days to reach $32 billion as of April 19, the lowest level since September 2017.

This worrisome trend has raised questions about the adequacy of dollar inflows to rebuild reserves, especially after the central bank settled overdue dollar obligations earlier in the year.

Samir Gadio, Head of Africa Strategy at Standard Chartered Bank, pointed out that while the naira had been supported by onshore dollar selling, the rally was likely overextended.

Gadio warned that the emergence of a dislocation in the market, with domestic participants selling dollars at increasingly lower spot levels was unsustainable and necessitated a correction.

The central bank’s efforts to stabilize the naira have been evident with interventions aimed at improving liquidity.

However, the effectiveness of these measures remains uncertain, particularly as the central bank offered dollars to bureau de change operators at a rate 17% below the official rate tracked by FMDQ.

Analysts, including Ayodeji Dawodu from Banctrust Investment Bank, foresee further challenges ahead, predicting that the naira will likely stabilize around 1,500 against the dollar by year-end.

Dawodu emphasized the importance of stabilizing the currency to attract strong foreign capital inflows, underscoring the significance of sustainable monetary policies in Nigeria’s economic recovery.

As Nigeria grapples with the repercussions of the naira’s depreciation and declining foreign reserves, policymakers face mounting pressure to implement measures that ensure stability and foster confidence in the economy.

The road ahead remains uncertain, with the fate of the naira intricately tied to Nigeria’s ability to address underlying economic vulnerabilities and bolster investor trust.