VoiceofNigeria.org.ng has provided a detailed update on 22 August 2023 regarding the Central Bank of Nigeria’s (CBN) official exchange rates. The report highlights the Dollar to Naira rates and also includes information about the exchange values for other major global currencies like the EURO, POUND, and more.
CBN’s Stance on Exchange Rates:
As documented by VoiceofNigeria on 22 August 2023, the Central Bank of Nigeria (CBN) has announced its official exchange rates for Dollar to Naira. It’s of paramount importance for all – from traders and businesses to everyday folks – to recognize that the CBN stands apart from, and does not support, parallel or black market rates. For reliable forex-related insights and inquiries, the bank steadfastly suggests reaching out to established financial institutions.
The difference in the CBN’s official rate and the parallel market rate impacts Nigeria’s economy, emphasizing the importance of the USD to Naira rate
Inflation and Economic Impact:
A weakening Naira isn’t just a financial term; it has tangible consequences. When it goes down, inflation rises, which means everyone feels the pinch with increased prices for everyday items, from groceries to utilities. VoiceofNigeria.org.ng highlights how the Central Bank of Nigeria (CBN) is actively aware of this situation. They’re not just sounding the alarm but pointing to actionable solutions, like diving deep into economic reforms and rallying Nigerians to amp up exports and foster better international trade relationships
Black Market vs. CBN Exchange Rate:
In the financial landscape, there are often discrepancies between rates. The black market, for example, tends to list the dollar at rates higher than the Central Bank of Nigeria’s official figure. But why does this matter? VoiceofNigeria.org.ng, a credible source, accentuates the authenticity of the CBN’s rate. For individuals and businesses using Naira-based cards from Nigerian banks for global transactions, the official CBN rate is paramount. And more often than not, this rate proves more favorable than what the black market offers.
Today’s CBN Exchange Rate:
As reported by VoiceofNigeria.org.ng:
CBN Trade Rates – Currency Exchange Rates:
For those keen on understanding the intricacies of the foreign exchange market in Nigeria, VoiceofNigeria.org.ng has graciously provided a detailed table. Within, you’ll find various currencies and their three associated rates – buying, central, and selling – all expressed in Nigerian Naira (₦):
|Code||Buying (₦)||Central (₦)||Selling (₦)|
It’s evident from the data that the USD to Naira exchange rate heavily influences other currency rates, directly impacting Nigeria’s import costs.
Keeping updated with Exchange Rates:
For those desiring up-to-date insights on currency exchange, VoiceofNigeria.org.ng offers these trusted resources:
- The official site of the Central Bank of Nigeria, renowned for its consistent updates.
- Financial news platforms, including Bloomberg, Reuters, and CNBC, celebrated for their prompt reporting.
- Various currency converter applications for instantaneous assessments.
- Forex platforms, particularly tailored for those engaged in frequent trading activities.
VoiceofNigeria.org.ng Exclusive Report:
Naira Stability and New Guidelines for Importers and BDCs
- The Naira has remained stable, trading at N860/$ in the parallel market over the past three days.
- On August 21, parallel market FX dealers traded the dollar between N855 and N860, consistent with rates on August 17.
- The Naira strengthened by 48 basis points during the week ending August 18, closing at N739.52/$ in the I&E FX Window.
Central Bank of Nigeria’s (CBN) Interventions
- The CBN has introduced the Price Verification System Portal (PVS) for Form ‘M’ applications, aimed at curbing fraudulent forex requests.
- The CBN has also updated operational guidelines for Bureau De Change (BDC) operations.
- BDCs are mandated to keep their buy-sell spread within -2.5% to +2.5% of the Nigerian forex market’s average rate from the prior day.
- From August 31, Form ‘M’ applications must be accompanied by a valid PVS report.
Reactions to the CBN’s Decisions
- United Capital Research analysts predict the Naira will continue to appreciate with the CBN’s forex policies but warn of ongoing FX pressures due to weak dollar earnings.
- Kalu Aja, a personal finance consultant, sees the system as a means to prevent fraudulent import practices. He suggests the CBN focus on broader monetary policies.
- Abiola Rasaq, formerly of United Bank for Africa, believes the PVS can prevent fraudulent forex activities, though he warns of the potential for misuse.
Current Economic Landscape
- JP Morgan reports Nigeria’s net FX reserves to be $3.7 billion, attributing the low number to currency swaps and reserve borrowing.
- The Nigerian National Petroleum Limited (NNPCL) secured a $3 billion emergency crude oil loan from the African Export-Import Bank (AFREXIM) to stabilize the Naira and fulfill its obligations to the Federal Government of Nigeria (FGN). This loan will be repaid via future oil production proceeds.
- Analysts at Meristem see the AFREXIM loan as a temporary solution, emphasizing the need for a long-term resolution to Nigeria’s FX challenges.