Home » DOLLAR
Tag:

DOLLAR

Business

Naira Weakens Despite CBN’s Efforts, Closes at N996.75/$ on I&E Forex Window

by ONUAH YVONNE
written by ONUAH YVONNE

On Thursday, November 9, the Nigerian Naira closed trading on the Investor & Exporter (I&E) forex window at N996.75/$, reflecting a 13.95% decline from its previous closing rate of N874.71/$ on November 8. This comes despite the Central Bank of Nigeria’s (CBN) ongoing efforts to bolster the foreign exchange market.

According to details on the FMDQ OTC Securities Exchange, the Naira has experienced a significant loss of value, amounting to 27.75% since the beginning of the week when it opened at N780.23/$. Notably, the Naira has seen a cumulative depreciation of about 40% throughout 2023, earning it the designation of one of the worst-performing African currencies by the World Bank.

At the parallel market, the Naira’s exchange rate stood at N1,140/$ as of Thursday. Traders in the parallel market, including individuals identified only as Kadri and Awolu, reported varying rates. Kadri noted, “Dollar is N1,100 if you want to sell. It is N1,140 if you want to buy,” while Awolu expressed willingness to buy the dollar at N1,100, stating, “Dollar is N1,100 if you want to sell to me.”

The continued depreciation of the Naira reflects ongoing economic challenges, prompting concerns among market participants and further highlighting the need for comprehensive measures to stabilize the nation’s currency. The CBN’s efforts to strengthen the foreign exchange market are yet to yield the desired results, and the Naira’s performance remains a critical indicator of the economic landscape in Nigeria.

0 comment
1 FacebookTwitterWhatsappTelegram
Special Features

Historic Fall of Nigerian Naira Sparks Social Media Outcry

by Quicktell News
written by Quicktell News

Nigerians have taken to social media to express their outrage and concerns following the historic depreciation of the country’s currency, the Naira.

On Tuesday, the Naira exchanged at an astonishing rate of N1,000 to the United States dollar on the parallel market, triggering widespread consternation among citizens.

Reports indicate that players in the Lagos Parallel Market, commonly referred to as the Black Market, were purchasing a single dollar for N990 and selling it at N994 on September 26, 2023, according to sources within the Bureau De Change (BDC) sector. Notably, Abokifx, a website renowned for aggregating daily exchange rates for Nigerians using parallel market sources, showed the dollar trading at a staggering N1,000 on Tuesday morning.

Despite the Central Bank’s efforts to stabilize the exchange rate at N768 per dollar over the past week, the Naira has reached critical lows in the parallel market, which remains the primary avenue for foreign exchange transactions within Nigeria.

This alarming devaluation of the Naira has left many Nigerians disheartened, as they grapple with the stark reality of their currency’s dwindling value against the United States dollar.

Reactions from the Nigerian Public

Social media platforms have been abuzz with Nigerians venting their frustration and apprehension regarding the currency crisis:

  • Frank expressed his dismay, stating, “I’ll hit the ground running on my 100 days in office. Since he illegally occupied Aso Rock, everything about Nigeria has been crashing.”
  • Chinedu Philip Onoyima voiced skepticism, saying, “You can’t expect anything from someone that doesn’t have. Tinubu doesn’t have anything to give Nigerians. He’s there because it is his turn.”

The plight of the Naira remains a pressing concern for Nigerians, with many eagerly awaiting government intervention and economic policies to address the alarming depreciation and restore confidence in the country’s financial stability.

0 comment
1 FacebookTwitterWhatsappTelegram
Business

Nigerian Naira Devalues Further, Hits N950/$1 Amid Forex Scarcity

by ONUAH YVONNE
written by ONUAH YVONNE

In a concerning development for the Nigerian economy, the nation’s currency, the Naira, has suffered another significant depreciation against the US Dollar. On Wednesday, it closed at an alarming rate of N950/$1 in the parallel market, marking a substantial loss of value compared to the previous day.

Just a day prior, on Tuesday, September 12, the Naira had closed at N930/$1, indicating a rapid decline in its value over a span of just 24 hours. The situation worsened on Wednesday, with the Naira trading at both N935/$1 and N950/$1 at different points during the day.

This concerning trend was also observed in official exchange platforms. According to Bureau de Change operators, the Naira closed at 758.12/$ on Wednesday, a significant drop from the rate of 742.10/$ on Tuesday, as per data from the Investor & Exporter forex window, which is tracked on the official trading platform, the Financial Markets Dealers Quotations (FMDQ).

Yusuf Kareem, a Bureau de Change operator, expressed his bewilderment over the situation, stating, “We commenced trading at 930/$ in the morning and it closed at 950/$ in the evening. The Naira has been scarce; we don’t know what is happening.”

Sanusi Ibrahim, another BDC operator, echoed these sentiments, indicating that the Naira was being bought and sold at N935/$1 and N950/$1 on the same day. The uncertainty surrounding the Naira’s exchange rate has left market participants deeply concerned about future fluctuations.

The Association of Bureaux De Change Operators of Nigeria (ABCON) has recently appealed to the Central Bank of Nigeria (CBN) to provide Bureaux De Change operators with digital autonomy. They believe that this autonomy will help achieve exchange rate convergence and curb market volatility.

ABCON’s President, Dr. Aminu Gwadabe, urged the CBN to grant approval for BDCs to transition fully to digital operations. This transition, he argued, would lead to a more accurate market rate discovery, support the government’s harmonized foreign exchange rate policies, and enhance the monitoring of BDC transactions for regulatory compliance.

In related economic news, Nigeria’s trade deficit for the second quarter of 2023 reached a staggering N5.7 trillion, as revealed by the Foreign Trade Statistics report. The report, published by the National Bureau of Statistics (NBS), disclosed that Nigeria’s total trade volume stood at N12.7 trillion, with total exports amounting to N7 trillion and total imports at N5.7 trillion. Additionally, the report highlighted a 17% increase in revenue from Value Added Tax (VAT) and Company Income Tax (CIT) during the first half of 2023 compared to the same period in 2022.

The situation with the Naira’s depreciation and the widening trade deficit underscores the economic challenges facing Nigeria and the need for urgent measures to stabilize the currency and address trade imbalances.

0 comment
0 FacebookTwitterWhatsappTelegram
Top Stories

Former Gabonese President’s Son Detained with Large Sum of Money Amidst Military Coup

by VIVIAN JENSEN
written by VIVIAN JENSEN

Noureddin Valentin Bongo, the eldest son of the ousted President of Gabon, Ali Bongo, has been apprehended at his private residence with a substantial amount of cash. This development comes as Gabon grapples with a military coup that has sent shockwaves across the nation.

Noureddin Valentin Bongo, who also served as the coordinator of presidential affairs, a position wielding significant influence over key sectors including administration, security, and defense, was taken into custody immediately by military personnel. The arrest has been made pending a forthcoming investigation into the nation’s financial affairs.

Gabon, a West African country, has been ruled by the Bongo family for a staggering total of 56 years, with Omar Bongo, the father of Noureddin Valentin Bongo, reigning as President for 42 years. This prolonged dynastic rule ultimately culminated in the recent coup, igniting widespread outrage and discussion on various online platforms.

In a further revelation, military officers claim to have uncovered suitcases and bags brimming with an assortment of currencies at the family residence of Ali Bongo. This discovery transpired shortly after the military assumed control following Bongo’s controversial re-election, marking his 14th year in power, and placing him under house arrest.

The stockpiles of currency, consisting of CFA francs, dollars, and Euros, were reportedly found within the house of Yann Ngulu, who serves as the Chief of Staff to Nourredine Bongo, the eldest son of the deposed President, Ali Bongo. A viral video circulating online displays the money-laden bags and suitcases, shedding light on the extent of the financial resources at play.

The situation in Gabon remains fluid, with international observers closely monitoring developments in this evolving crisis. As investigations unfold, the nation is left grappling with the implications of the coup and the potential ramifications for its political landscape.

0 comment
0 FacebookTwitterWhatsappTelegram
Top Stories

Human Rights Lawyer Femi Falana Files Lawsuit Against Central Bank of Nigeria Over Naira Floatation

by ONUAH YVONNE
written by ONUAH YVONNE

Renowned human rights lawyer, Femi Falana, has initiated legal action against the Central Bank of Nigeria (CBN) in response to its decision to float the Nigerian Naira. Falana confirmed this development during an interview on Channels Television held on Friday.

The CBN’s directive, issued in June, instructed Deposit Money Banks to allow the Naira to float freely against the US Dollar and other international currencies. At the time of the policy’s announcement, the Naira was trading between 730 and 755 to the Dollar at the Investors and Exporters (I&E) window.

Femi Falana denounced the CBN’s move to float the Naira, terming it as ‘illegal’ and asserting that it is being contested in a court of law. He stated, “There’s no provision for floating the Naira. It’s illegal. You say, ‘The value of the Naira will be determined by market forces.’ That is not there in the law.”

Falana explained that he has filed a lawsuit against the Central Bank of Nigeria at the Federal High Court. He pointed to Section 16 of the Central Bank Act, which imposes the responsibility on the Central Bank to establish and ascertain the Naira’s exchange rate in relation to other currencies.

As of Friday, the CBN reported the exchange rate to be between N744 and N746 for one US Dollar. Falana underscored that the CBN Act explicitly mandates the apex bank to set the exchange rate. He referred to Section 20(1) of the CBN Act, which designates the currency notes issued by the Central Bank, specifically the Naira, as the sole legal tender in Nigeria.

Additionally, Section 20(5) of the Act stipulates that utilizing any currency other than the Naira in Nigeria without the central bank’s endorsement constitutes an offense punishable by imprisonment of up to six months.

Falana went on to argue that the government’s reluctance to strengthen the Naira as the exclusive legal tender in Nigeria hampers progress. He voiced his skepticism towards the effectiveness of the Federal Government’s recent decision to allocate N5 billion to each state and the Federal Capital Territory for purchasing food items to distribute to the poor. Falana deemed these measures diversionary and emphasized that they do not address the core issue of the economy’s increasing dollarization.

In light of these legal proceedings, the matter of the Naira’s floatation remains a subject of significant concern and discussion, with Falana’s intervention spotlighting the legal and economic complexities surrounding the CBN’s decision.

0 comment
0 FacebookTwitterWhatsappTelegram