Tag:

Exchange rate

Exchange Rate: Naira Depreciates Further Against the Dollar

by Victor Ndubuisi June 8, 2024

written by Victor Ndubuisi 1 minutes read

On Friday, the Naira lost value compared to the US dollar on the official and black markets, capping a bad week. FMDQ data shows that on Thursday, the Naira depreciated by N2.50, from N1481.49 to N1483.99 per US dollar.

The little appreciation the Naira saw on Thursday, when it slightly climbed vs the dollar, has reversed with this devaluation.

It was not much better in the black market. On Friday, the value of the Naira fell to N1,495 per US dollar, down from N1,485 on Thursday. This indicates a N10 decline, indicating ongoing pressure on the local currency.

See How Much Dollar Exchange To Naira Today 12 November 2021

The turnover of foreign exchange transactions surged dramatically in spite of the depreciation. The turnover increased from $213.31 million on Thursday to $269.27 million on Friday. This suggests more trading activity, but it was insufficient to maintain the value of the Naira relative to the US dollar.

These events follow the Nigerian government’s confirmation on Wednesday that it had received an Afrieximbank payment totaling $925 million. This sum is a portion of a $3.3 billion emergency loan for the repayment of crude oil, which was intended to stabilise the nation’s foreign exchange deficit.

June 8, 2024

UPDATE: Naira Further Crashes as Dollar Sales to BDCs Fluctuate

by Victor Ndubuisi May 9, 2024

written by Victor Ndubuisi 3 minutes read

The value of the Naira continued to fall on Wednesday in both the official and unofficial markets. Resumption of stockpiling and speculation drove this depreciation, which was made worse by several Bureaux De Change (BDCs) pulling out of the Central Bank of Nigeria’s (CBN) dollar sales programme.

The Naira’s value decreased to N1,435 per dollar in the parallel market from N1,415 per dollar the day before, despite measures to stop street currency trading.

At N1,421.06 per dollar on the Nigerian Foreign Exchange Market (NAFEM), it declined.

See How Much Naira Will Trade Against The Dollar, As CBN Resumes FX Sale To BDCs

The Naira had a notable devaluation of N4.49, according to data from FMDQ, with the indicative exchange rate dropping to N1,421.06 per dollar.

As a result, the difference in pricing between the NAFEM and parallel market grew to N13.94 per dollar.

In order to address this and stabilise the retail forex market, the CBN started selling dollars to BDCs again in February.

BDC operators, however, have complained about the CBN’s sluggish dollar distribution, citing three to four weeks as the average time between payment and receipt.

Some BDCs have asked the CBN to reimburse them for their Naira payments because of these delays and the unpredictability of the market.

Again, CBN Sells Dollars to BDCs Below Market Rate (See Rate Inside)

Leading BDC operators verified this pattern in an anonymous statement to Vanguard, pointing out that several BDCs have already gotten their returns.

Speaking to Newsmen on condition of anonymity, the Chief Executive of a BDC said, “I think the CBN is overwhelmed. You pay money and it takes one month for you to collect $10,000. It is over a month now since they intervened and they have not intervened again.

“Even the last one that they did some BDCs are just collecting the dollars. Some are even saying they should return their money. They are asking for a refund because there are many challenges. Some have paid but their name is appearing in another location which makes it impossible to collect the dollars. Some are getting their refund but it is a very slow pace too.”

Bereau de Change Ban: CBN Orders Banks To Create Mobile App For Forex Movement

Also speaking on condition of anonymity, another BDC operator said, “There is no supply. The CBN supply is slow. They sell one tranche for one month. It is too low. If they don’t have the money they should tell us we don’t have the money.”

May 9, 2024

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Forex Crisis: Naira Appreciates Massively Against Dollar

by Victor Ndubuisi May 6, 2024

written by Victor Ndubuisi 2 minutes read

Trade resumed on Monday, and the naira saw a big increase vs the US dollar at the foreign exchange.

The Naira strengthened from N1,400.4 per dollar on Friday to N1353.21 per dollar on Monday, according to FMDQ statistics.

In comparison to N1,400.4 exchanged on Friday, this indicates a gain of N46.83 against the dollar.

Likewise, the naira appreciated N20 against the dollar on the black market. On weekdays, the exchange rate was N1420 per dollar, but it was only N1400.

11th February 2022: See How Much Dollar Exchange To Naira Today

Despite the intervention of the Central Bank of Nigeria, the naira had been experiencing volatility in the foreign exchange market for several months.

In an effort to support the naira in the foreign exchange market, the apex bank has given dollars to Bureaux De Change operators three times since March.

Peer-to-peer cryptocurrency businesses have been accused by the Nigerian government for the naira’s fluctuations in several forums.

The Security and Exchange Commission removed the naira from the cryptocurrency market on Monday.

31 March 2022: See How Much Naira Exchange To Dollar Today

A regulatory crackdown caused cryptocurrency company Binance to withdraw from the naira market in March.

Tigran Gambaryan and Nadeem Anjarwalla, two executives of Binance who are currently at large, were charged with tax evasion and financial fraud in Nigeria in April.

May 6, 2024

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Food Prices Continue to Surge Despite Dollar Crash

by Victor Ndubuisi April 17, 2024

written by Victor Ndubuisi 1 minutes read

According to the most current data from the National Bureau of Statistics (NBS), prices of goods and services have continued to skyrocket as stories of the Naira’s recent advance versus the dollar in Nigeria’s foreign exchange market flood the internet.

Food inflation reached a startling 40.01 percent in March, while headline inflation skyrocketed to 33.20 percent. Nigerians now have to pay more for necessities and services as a result.

LATEST: House Of Reps Move To Act On Hike Of Food Prices

The NBS research notes that the cost of staple goods such rice, beans, garri, and yams has significantly increased. Inflationary pressures have also been exacerbated by growing energy prices, such as those associated with petrol, diesel, and recent increases in electricity tariffs.

Notably, the Naira has appreciated steadily versus the US dollar since February 2024; as of Monday, it was worth N1,136.04 versus the US dollar.

Ayo Teriba, the Chief Executive Officer of Economic Associates (EA), issued a warning despite this improvement in the currency rate, stating that it might take three to twelve months to see any noticeable shift in the cost of products and services in Nigeria.

April 17, 2024

UPDATE: Naira Crashes to N1,495/$ in Black Market

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Naira Continues Fight Back Against Dolla, Gain In Parallel Market

by Victor Ndubuisi April 17, 2024

written by Victor Ndubuisi 1 minutes read

At the official market on Monday, the value of the Naira increased and was valued at N1,136.04 against the US dollar.

The Naira appreciated by N6.34, according to data from the FMDQ Exchange’s official trading platform.

When compared to the previous trading date on Friday, April 12, when the exchange rate was N1,142.38 to the dollar, this indicates a 0.55 percent gain.On Monday, however, the entire daily turnover dropped from 281.34 million dollars on Friday to 251.60 million dollars.

See How Much Dollar Exchange To Naira Today 18 November 2021

In the meantime, the Naira fluctuated in value against the dollar between N1,227 and N1,000 during the Investors and Exporters (I&E) session.

April 17, 2024

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Again, CBN Sells Dollars to BDCs Below Market Rate (See Rate Inside)

by Victor Ndubuisi April 8, 2024

written by Victor Ndubuisi 1 minutes read

Once more, through a circular to Bureau De Change operators (BDCs), the Central Bank of Nigeria (CBN) has taken action, authorising the sale of $10,000 to each BDC at a set rate of N1,101 per dollar.

According to a circular that Nairametrics was able to receive, BDCs must sell the dollars allotted to qualified consumers at a price that does not exceed 1.5% over the purchase price. This suggests that the highest rate at which BDCs can sell the dollars is N1,117 per dollar.

The CBN’s latest action is a reflection of its strategic efforts to control the currency rate and prevent the naira from depreciating too much.

See How Much Naira Will Trade Against The Dollar, As CBN Resumes FX Sale To BDCs

The Central Bank’s designated selling rate is significantly less than the N1,251.05 per dollar rate that was seen at the close of the previous week, based on data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).

The CBN attempts to maintain exchange rate stability while increasing market liquidity by providing dollars to BDCs at a fixed rate.

According to analysts, the CBN’s larger efforts to control exchange rate swings and promote trust in the Nigerian economy include this involvement.

April 8, 2024

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UPDATE: See The Latest Naira And Dollar Exchange Rate At Black Market

by Victor Ndubuisi January 19, 2024

written by Victor Ndubuisi 3 minutes read

The US dollar continues to weaken the value of the Nigerian naira, which as of Thursday hit a fresh low of N1,355 on the black market.

Five months have passed since the dollar rate in the parallel market first surpassed the N1,000 threshold.

The naira closed at N902 versus the dollar, up from N931.23, on the official Nigerian Foreign Exchange Market (NAFEM), despite the dollar’s continued growth.

The cost of living in Nigeria is rising as a result of the naira’s depreciation.

See How Much Dollar Exchange To Naira Today 12 November 2021

The Central Bank of Nigeria (CBN) is trying to settle forex commitments in order to boost the market, and AfreximBank has provided $2.25 billion in foreign exchange support. Despite these efforts, the naira’s devaluation has not stopped.

According to Daily Trust reports, from late December 2023 to early January 2024, the exchange rate varied between N1,170 and N1,200. During this time, policymakers expressed optimism over the naira’s potential for recovery.

But in recent days, there has been more pressure on the currency, and on the parallel market, it has risen to N1,300 versus the dollar.

The dollar is currently selling at N1,350 in Lagos and N1,355 in Abuja, underscoring the continued difficulties the Nigerian economy faces and the pressing need for sound monetary policy to keep the naira stable.

4th May 2022: See How Much Naira Exchange To Dollar Today

“I don’t know what is happening again,” said Gidado Ibrahim, a Bureau de Change operator in the Federal Capital Territory, in an interview with the site. “You can imagine that for some time now, it was exchanging between N1, 200 and N1, 250 to the dollar and just from yesterday, it has gone to N1, 355 and even more.”

“To worsen the situation, the dollar is just going up against the naira and it doesn’t look like the naira will recover anytime soon. The government needs to sit up.”

Also speaking, another BDC operator, Ali Musa told Daily Trust that, “Dollar is even difficult to get. Anyone that wants to buy up to $1,000, we have to source from colleagues.

“I think the scarcity is what is causing it (US dollar) to be going up and it is unfortunate because it will reach a point where people will no longer be interested in buying. Even myself, I am angry because the dollar should not be this high against the naira.”

2023: BoA Predicts 20% Drop In Value Of Naira

Abu Dollar, a different BDC operator in Lagos, reported that it sold for N1, 350 yesterday.

He stated that the severe lack of money in the market could lead to more price increases.

“As I am talking to you, many people are unable to get the dollars. I think it is because of people travelling. Some of them came for the holiday and they want to return. This I believe is one of the reasons for the hike in rate.”

January 19, 2024

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UPDATE: Naira Drops Against US Dollar, Exchanges At N763.17

by Victor Ndubuisi June 22, 2023

written by Victor Ndubuisi 1 minutes read

The Naira fell against the US dollar at the investor and exporter window on Wednesday, trading at N763.17.

According to NAN, the Naira has declined by 0.87 percent compared to N756.61 per dollar on Tuesday.

On Wednesday, the open indicative rate was N741.21 to the dollar.

The highest rate reported during the day’s trade was N815 to the dollar, before it finished at N763.17.

Floating Naira Wrong Decision For Nigeria Economy – Primate Ayodele

During the day’s trade, the Naira fell as low as 476 to the dollar.

The official investors and exporters window exchanged $96.44 million on Wednesday.

June 22, 2023

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Dollar: CBN Grants Banks Freedom To Trade Forex At Any Rate

by Victor Ndubuisi June 14, 2023

written by Victor Ndubuisi 2 minutes read

The Central Bank of Nigeria has given commercial banks permission to trade foreign exchange freely at any rate.

The approval implies that banks can now sell foreign currency at a market-determined rate.

According to news reports, certain banks have set the USD to Naira rate at N699 to N750, implying that Nigeria now operates a freely floating exchange rate in accordance with President Bola Ahmed Tinubu’s commitment to unify the rate.

What President Tinubu Means By Unified Exchange Rates And How It Will Affect You

Dr. Andrew Nevin, Advisory Partner & Chief Economist at PricewaterhouseCoopers (PwC), said in an Arise Television interview on Wednesday that the unification of foreign exchange rates will have a significant influence on the economy by increasing investment opportunities in Nigeria.

“What has been happening is that CBN is taking dollars from the Federation’s account and giving to privileged individuals at N411 to US dollar while the real price is N700 to N750 to the Dollar, we don’t really know because they’ve removed price transparency.

”What happens is that the state government cannot pay their pensioners. That fundamental issue will be addressed by the development. Now the state government will get full value for its dollar.

“It will have a dramatic impact on the fiscal structure of the country when we stop giving the dollar to privileged individuals. We get better investment, more fair use of the country’s resources and improved business environment, this will strengthen Nigeria’s currency”, he stated.

See Black Market Exchange Rate For Dollar To Naira Today, 11th May

Nigeria has maintained a carefully managed official exchange rate for years, even as the country’s FX reserves have reached new lows. While the CBN kept the fictitious rate of $1/N462 in place.

June 14, 2023