Discover the most recent “Dollar to Naira News 2023” at your fingertips, a hub for daily updates, today rates, and pivotal insights. In a world where currency dynamics shift swiftly, our blog keeps you informed with the latest Dollar to Naira rates, helping you make well-informed decisions.
Dollar to Naira News 2023 – September 12, 2023
In a volatile turn of events in the currency markets on September 12, 2023, the value of the U.S. Dollar (USD) surged at the official exchange window, while simultaneously seeing a downturn in the parallel black market. During Monday’s trading, the USD exchanged hands within the N804.15 to N722.39 bracket per dollar in the official investors’ and exporters’ window, marking a significant fluctuation compared to recent performances. As per the data acquired from the FMDQ Exchange, this depicted one of the most considerable swings in recent times, revealing a discernible depreciation of the Naira by approximately 5%.
Following a tense trading day, the USD settled at an exchange rate of N773.50, a substantial rise from Friday’s close of N736.62, indicating an increment of N36.88 kobo in the asking price from authorized dealers. This remarkable shift is perceived as a reflection of the heightened demand for the dollar in the official market, which inherently saw a depletion in its value against the U.S. Dollar.
Contrastingly, the black market presented a differing narrative. According to a report published by Naira Rates, a renowned black market rate aggregator, the Naira exhibited a slight strengthening, trading at an average rate of N917.5 per dollar, down from its previous position at N922.65. Additionally, the British Pound and the European Euro also traded at depreciated rates in the black market. While the pound was exchanged at an average of N1162.5 per unit, down from N1168.9, the euro saw a decrease, moving from N1001.7 to N996.2 per unit.
Furthermore, the trading volume in the foreign exchange transactions witnessed a considerable dip, decreasing by a staggering 75.34%. Monday’s transactions amounted to a mere $37.86 million, a sharp decline from the preceding week’s $153.55 million, indicating a cautious approach adopted by forex traders amidst the volatile market conditions.
As the week unfolds, stakeholders in the currency exchange market will be keenly observing the trends, with a heightened focus on potential regulatory responses and the impacts on trade and investment climates in the region
CBN Stops Banks From Spending Forex Revaluation Gains
The Central Bank of Nigeria (CBN) has told banks in Nigeria that they can’t use the money they make from changes in the value of foreign money they have for things like paying dividends or everyday expenses.
This decision came in a letter dated September 11, 2023, signed by Haruna Mustafa, the CBN Director of the Banking Division Department, and banks are supposed to follow it right away.
Here’s why: Sometimes, the value of the foreign money a bank has changes when the exchange rate between foreign money and local money changes. The CBN has looked at how recent changes in exchange rates might affect banks’ foreign money, and they’ve decided to make some rules.
The rules say that banks should be very careful and save the money they make from these changes in foreign money value as a safety cushion for when things go bad in the foreign money market. They can’t use this money to pay dividends to their shareholders or for their regular expenses.
There are also some other rules about how much money banks can lend to a single person or business and how much foreign money they can borrow. These rules will stay the same.
So, in simple terms, the CBN is telling banks to be careful with the money they make from foreign money changes and not spend it on things like dividends or daily costs. They also have to follow some other rules about lending and borrowing money.