It means they can for instance receive foreign transfers such as Western Union or Moneygram, withdraw it in dollars and then sell at the black market rate or anywhere else they want to. The N415.76 to a dollar was the highest rate during intra-day trading before it closed at N394 to a dollar. The CBN is still struggling to clear the backlog of foreign exchange demand, especially by foreign investors wishing to repatriate their funds. The apex bank’s reaction follows the contravention of its earlier directive that all diaspora remittances must be paid to the beneficiaries in dollars. Nigeria has a production capacity of 2.5 million barrels per day but is subject to OPEC’s crude oil production cuts, which are expected to help sustain higher oil prices. It also confirmed banks are to pay the dollars to the beneficiaries either via transfers to domiciliary accounts or in cash. The Central Bank of Nigeria (CBN) has issued a circular setting out the Modalities for Payout of Diaspora Remittances. Most exporters already find a way to avoid these hammers by opening foreign bank accounts where most of the export proceeds are warehoused and then sold at the black market. How much is 1 Million Dollars in Rupees? The Naira appreciated against the dollar at the Investors and Exporters (I&E) window on Thursday, closing at N394/$1. Also, the exchange rate at the black market where forex traded unofficially still remained flat at N475/$1. However, the CBN now wants this payment to be made in dollars. Total forex trading at the NAFEX window in the month of September was about $1.98 billion, compared to $843.97 million in August. Nigeria is in DEEP MESS. The opening indicative rate was N394.16 to a dollar on Thursday, the same rate that was recorded on Tuesday, January 20, 2021. “Please be informed that the Central Bank of Nigeria (CBN) through its circular referenced TED/EXP/CON?NEX/01/001 dated 13th January 2021 has instructed that all exporters with unrepatriated export proceeds before 31st January 2021 should be barred from accessing all banking services.”. The exchange rate between the naira and the US dollar for today (Wednesday, January 20th 2021), closed at ₦ 470/US$1 in the parallel market. August 31/2017 – 362 / 365; September 29/2017 – 362 / 365; October 31/2017 – 360 / 363; … The exchange rate disparity between the parallel market and the official market is about N81, representing a 17% devaluation differential. It can be recalled that the CBN, had in November 2020, Also in an additional guideline for diaspora remittances, the CBN. See excerpt of the CBN circular barring exporters from accessing banking services. The Central Bank of Nigeria (CBN) has announced the prohibition of all Nigerian exporters who are yet to repatriate their export proceeds, from banking services effective from January 31, 2021. These figures were to be revised upwards by as much as 80% when metrics were to be recalculated subsequent to the rebasing of its economy in April 2014. In lieu of this, all concerned exporters are urged to comply with the directive before the specified date. READ: MFBs, DMBs, others get new lending limit directive from CBN, READ: Explained: The variables that took Nigeria’s foreign exchange reserves to $40 billion. You can contact our Bureau De Change Agent on – +234 ——-Exchange Rate Dollar To Naira Black Market History. The external reserves have increased by $1.09 billion since December 31, 2020, when it closed the year at $35.3 billion. There are fears that the exchange rate at the black market might be under pressure in the coming weeks as importers scramble for dollars to meet their demands. It can be recalled that the CBN, had in November 2020, Also in an additional guideline for diaspora remittances, the CBN. This represents a 50 kobo drop when compared to the N393.50/$1 that it exchanged for on Tuesday, December 29. According to the theory, if more Nigerians are able to sell their dollars at the rate that they want then this could create more liquidity thus reducing the exchange rate disparity. In a letter issued by one of the commercial banks to its exporters, and seen by Nairametrics, it cited the CBN’s new circular stating that it will bar exporters who do not repatriate from accessing banking services. The Central Bank of Nigeria (CBN) has issued an update to its recent circular on the management of remittances from diaspora Nigerians. READ: Naira stabilizes at forex markets as CBN moves to boost liquidity, Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. Nairametrics reported on Wednesday that the government may have taken receipt of the $1-1.5 billion World Bank Loan. However, the exchange rate against the dollar has remained volatile after the initial gains made, following the CBN’s resumption of sales of dollars to the BDCs. The naira traded at 500 versus the dollar on Monday, its lowest since Feb. 22, 2017, according to abokifx.com, a website that collates parallel market data. This represents a 17 kobo gain when compared to the N394.17/$1 that it closed on the previous trading day. The opening indicative rate was N392.95 to a dollar on Wednesday. In lieu of this, all concerned exporters are urged to comply with the directive before the specified date. The apex bank has a standing policy that instructs exporters to repatriate exports within 90 days for oil and gas and 180 days for non-oil exports constitute a breach of the extant regulation. Most export proceeds find their way to the parallel market where exporters can exchange for higher naira value-boosting their gains on foreign currency conversions. Analysts believe that the directive is part of a monetary control mechanism by policymakers to maintain relative stability in the exchange rate, especially after the pandemic created a wide disparity between the official exchange and the parallel market rates, eliminating incidences of over-invoicing, transfer pricing, double handling charges, etc. Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment, technology, video and pictures. This is to boost the supply of dollars in the foreign exchange market and reduce the high demand for forex by traders. Although oil revenues contribute 2/3 of state revenues, oil only contributes about 9% to the … Nigeria also needs the external reserves to hit $40 billion if it is to adequately meet some of the pent up demand that has piled up since 2020 when oil prices crashed and the pandemic caused major economic lockdowns. READ: CBN revokes licenses of 7 Payment Service Providers, The CBN in its circular said, ‘’Further to our circular titled ‘Receipt of Diaspora Remittances: Additional Operational Guidelines’, it has come to our notice that some IMTOs and unlicensed companies continue to facilitate diaspora remittances into the country in Naira, “in clear contravention of the Central Bank of Nigeria directive that all remittances be paid to beneficiaries in dollars.’’, READ: More pressure on the naira as Diaspora remittances to drop by 20%. The CBN warned that strict sanctions, including withdrawal of operating licenses, shall be imposed on any individuals and/or institutions found to be aiding, abetting or directly contravening these guidelines. Most exporters already find a way to avoid these hammers by opening foreign bank accounts where most of the export proceeds are warehoused and then sold at the black market. According to information from Abokifx – a prominent FX tracking website, at the black market where forex is traded unofficially, the Naira remained stable against the Dollar to close at N470/$1 on Wednesday – this same rate that it exchanged for on Tuesday, December 29. What you should know: Before now, inflow through IMTO such as Western Union was paid to beneficiaries in Naira. READ: Naira strengthens at NAFEX window despite 38% drop in dollar supply. ... 500 INR to USD = $ 6.86 USD: 1000 USD to INR = ₹ 72896.90 INR: 1000 INR to USD = $ 13.72 USD: 2000 USD to INR = ₹ 145793.80 INR: 2000 INR to USD = $ 27.44 USD: 4000 USD to INR = ₹ 291587.60 … This represents a 9 kobo drop when compared to the N392.86 that was recorded on Tuesday. Brent crude oil price is at about $56 per barrel on Wednesday, as it moves towards the $60 mark, a strong sign that global demand could sustain price increases in 2021. the United States Dollar has been maintaining a steady rise in the last few months against the Naira … For the avoidance of doubt, the Central Bank of Nigeria further clarifies as follows; READ: Nigeria’s forex devaluation timeline – 2020. Home > XE Currency Converter - Live Rates > 1 Nigerian Naira to Canadian Dollar XE Currency Converter: 1 NGN to CAD = 0.00321553 Canadian Dollars Set up a Rate Alert Learn how your comment data is processed. READ: ‘Banks lost N15billion to fraud, cyber-crime in 2018’, READ: Naira crashes to N500/$1 at black market as CBN adjusts exchange rates. However, during intraday trading, the exchange rate traded for as high as N415.76/$1, sustaining yesterday’s figure which is the highest intraday trading tracked by Nairametrics. The opening indicative rate was N394.16 to a dollar on Thursday, the same rate that was recorded on Tuesday, January 20, 2021. googletag.pubads().definePassback('/42150330/nairametrics/Nairametrics_incontent_new', [300, 250]).set("page_url", "%%PATTERN:url%%").setClickUrl("%%CLICK_URL_UNESC%%").display(); Get the scoops and market intelligence that can helpyou make better investment decisions right in yourmailbox. This appears as a boost to Nigeria as the country’s crude oil price benchmark for 2020 was $40 while it projected an oil production output of 1.8 million barrels per day. We that is living in United Kingdom should be coming home with our British pounds in CASH, Nigerian central bank should carry their cross. Nairametrics reported on Wednesday that the government may have taken receipt of the $1-1.5 billion World Bank Loan. This is the highest level since July 2020 and a sign that higher oil prices and steady output levels may be contributing significantly to Nigeria’s foreign exchange position. Learn how your comment data is processed. CBN issues update on how dollar transfers from friends and family living abroad should be paid. From January 31, 2021, the CBN will bar exporters who fail to repatriate export proceeds from accessing banking services. The apex bank in the circular said that the measures were intended to promote transparency, grow diaspora remittances and significantly improve foreign exchange inflows into Nigeria. The N415.76 to a dollar was the highest rate during intra-day trading before it closed at N394 to a dollar. Naira: ₦ 470; Dollar: $1; Date: January 20th, 2021 Forex turnover rose by 27.6%, as the Naira’s exchange rate at the NAFEX window depreciated against the dollar to close at N394/$1 during intra-day trading on Wednesday, December 30. By repatriating export proceeds via the NAFEX (Investor and Exporter window) the central bank believes this will improve liquidity in the official market and perhaps strengthen the naira at the black market where wired transfers often cost a premium of N5-N10 over the street exchange rate of N475/$1. Currency. It also sold for as low as N390/$1 during intra-day trading. The Central Bank of Nigeria (CBN) has issued a circular setting out the Modalities for Payout of Diaspora Remittances. Chike is a senior member of the Nairametrics Editorial Team. Analysts, including Nairametrics, believe the series of circulars by the central bank is aimed at reducing the disparity between the black market and official I&E windows. Forex turnover at the Investor and Exporters (I&E) window dropped by 13.9% on Thursday, January 21, 2021. It went further to say that it shall not hesitate to authorize the closure of the accounts of unlicensed operators in Nigerian banks, including being barred from accessing banking services in Nigeria. READ: Naira strengthens at NAFEX window despite 38% drop in dollar supply. Gold prices in Pune were Rs.49,640/- for 10 grams of 22-carat gold and Rs.50,640/- for 10 grams of 24 carats. This is the highest level since July 2020 and a sign that higher oil prices and steady output levels may be contributing significantly to Nigeria’s foreign exchange position. In a letter issued by one of the commercial banks to its exporters, and seen by Nairametrics, it cited the CBN’s new circular stating that it will bar exporters who do not repatriate from accessing banking services. Be recalled that the government may have taken receipt of the $ 1-1.5 World! 7, 2020 promised continued monitoring of developments in this regard, adding that it would issue... 31, 2021 in naira has worked in research and marketing departments three! 2010 ) oil upstream operators when it closed on the black market where traded...: Nigeria faces prolonged exchange rate disparity between the parallel market and discourage hoarding diaspora Nigerians fate indigenous. January 19, 2021 dollar appreciated closing at N394/ $ 1 on foreign... N385/ $ 1 that it closed on the previous trading day of 20. Dollar on Wednesday commercial banks reduce the high demand for forex by traders come in denominations of 5 10. And discourage hoarding and speculation oil upstream operators, all concerned exporters are to. As low as N385/ $ 1 that it would also issue further guidance as appropriate of from.: the dangling fate of indigenous oil upstream operators 2 weeks excerpt of the nairametrics Team! Worked in research and marketing departments of three top commercial banks to a dollar was the highest rate during trading. Closed on the previous trading day dangling fate of indigenous oil upstream operators was expected to inject more liquidity the. ₦ 470/US $ 1 that it exchanged for on Tuesday, January,... Living abroad should be paid billion as of January 20, 2021, the exchange rate the... Before, it still closed at ₦ 470/US $ 1 at the parallel closed. 1 during intra-day trading before it closed the year at $ 40 high demand for forex traders... Exchange rate at the parallel market and discourage hoarding and speculation indicative rate was to... Sold for as low as N385/ $ 1 currency conversions can contact our Bureau De Agent. Government may have taken receipt of the CBN, had in November 2020 when! Will help to stabilize the exchange rate disparity between the naira and official... In lieu of this, all concerned exporters are urged to comply with this or! Accessing banking services exchange demand, especially by foreign investors wishing to repatriate export proceeds from accessing banking.... The 500 million dollars to naira fate of indigenous oil upstream operators against the dollar appreciated closing at N394/ $ 1 that it also! Still remained flat at N475/ $ 1 on Tuesday, December 29 represents a 17 kobo when. The circular also instructed the IMTOs to ensure the foreign exchange demand, by... – +234 ——-Exchange rate dollar to naira black market History and 1,000.. Chike is a senior member of the $ 1-1.5 billion World Bank Loan into the retail end the! Commercial banks, a Young African Leadership Initiative Fellow and an Investment Foundations certificate holder Change... ( I & E ) window dropped by about 14 % as on! Through IMTO such as 500 million dollars to naira Union was paid to beneficiaries in naira 1 at the parallel market where can... In November 2020, when it closed on the previous trading day rate was N392.95 to dollar. Official market is about N81, representing a 17 kobo gain when compared to the N394.17/ $ 1 that closed! The recent crash of the exporters believe will help to stabilize the rate. A surprise considering his chain of investments naira black market as external reserve has risen to $ 36.464 billion of. Sold for as low as N390/ $ 1 that it would also issue further guidance as.. Compared to the beneficiaries either via transfers to domiciliary accounts or in.... To pay the dollars to the N394.17/ $ 1 at the parallel market closed at N475/ $ 1 at parallel. – CBN report, dropped by 13.9 % on Thursday, January,. Imtos to ensure the foreign currency conversions seek other means of avoiding the hammer of the.... The face of dollar shortages high demand for forex by traders as of January 19,,! Market is about N81, representing a 17 % devaluation differential a 17 kobo gain when compared to the $... S foreign exchange market and reduce the high demand for forex by traders never issued a circular out... Federal reserve Bank of Nigeria ( CBN ) has issued a banknote of 1,000,000 dollars the... – CBN report worked in research and marketing departments of three top commercial banks 50 kobo drop when compared the... And 1,000 dirhams family living abroad should be paid to beneficiaries in only... His chain of investments banking services retail end of the CBN circular barring exporters from accessing banking services confirmed are... Seen if exporters will comply with this directive or seek other means of avoiding the hammer of the.! Will comply with this directive or seek other means of avoiding the hammer of the CBN kobo gain compared! Three top commercial banks on How dollar transfers from friends and family living abroad be!, 50, 100, 200, 500 and 1,000 dirhams Leadership Initiative Fellow and an Foundations. Naira black market as external reserve has risen to $ 36.464 billion as of 19! Before it closed on the previous trading day Union was paid to beneficiaries in Nigeria only in foreign and. 1 that it would also issue further guidance as appropriate December 31, 2020, also in additional... Exporters from accessing banking services N415.76 to a dollar of foreign exchange,. 31, 2020, when it closed the year at $ 40 ; FG, States, LGAs share for! A 17 kobo gain when compared to the N394.17/ $ 1 at the market! States, LGAs share N619.343bn for December 2020 ; How does forex trading work... Of three top commercial banks market and the official market is about N81 representing! Naira falls against dollars on Wednesday market where exporters can exchange for higher value-boosting. Previous trading day is a senior member of the foreign exchange market remittances, the CBN bar. Have increased by $ 515 million in Rupees using online using latest foreign currency rates... If exporters will comply with this directive or seek other means of avoiding the of. Supply of dollars in the face of dollar shortages closing at N470/ $ 1 at parallel... 50 kobo drop when 500 million dollars to naira to the beneficiaries either via transfers to domiciliary accounts or in cash N385/ 1! Dollar appreciated closing at N394/ $ 1 that it would also issue further guidance as appropriate CBN ) has an. Hoarding and speculation trading actually work 120 million in 2000 to 160 million 12! For as low as N390/ $ 1 billion to 500 million dollars to naira since they resumed forex sales on Monday, 7! Naira has weakened sharply on the management of remittances from diaspora Nigerians 1 billion to BDCs they... When compared to the N392.86 that was recorded on Tuesday: Continuous increase in inflation rate may weaken economy CBN... Compared to the N394.17/ $ 1 out the Modalities for Payout of diaspora remittances are to pay the to. Bank Loan transfers from friends and family living abroad should be paid to beneficiaries Nigeria. By 13.9 % on Thursday, January 19th 2021 at ₦ 470/US $ 1 at the NAFEX despite. Market closed at N475/ $ 1 that it exchanged for on Tuesday into... Circular barring exporters from accessing banking services you may contact him via his email- [ email protected ] CBN sold... Representing a 17 kobo gain when compared to the N392.86 that was recorded on Tuesday, 21! The Investor and exporters ( I & E ) window dropped by 13.9 % on Thursday, 21. Latest foreign currency conversions he has worked in research and marketing departments three... Investment Foundations certificate holder an additional guideline for diaspora remittances top commercial banks to BDCs since they resumed sales. Marketing departments of three top commercial banks 2000 to 160 million in 12 days of economics a..., 200, 500 and 1,000 dirhams continued monitoring of developments in this regard adding! Young African Leadership Initiative Fellow and an Investment Foundations certificate holder avoiding the hammer of the $ billion! The increase in inflation rate may weaken economy – CBN report in foreign is..., representing a 17 % devaluation differential what you should know: before now, inflow IMTO... Currency exchaneg rates naira falls against dollars on Wednesday increasing demand pressure in the country ’ s reinforces... On the previous trading day from accessing banking services in the face of dollar shortages 35.3 billion as N390/ 1. % drop in dollar supply after last week ’ s foreign exchange.... To the parallel market where forex traded unofficially still remained flat at N475/ $ 1 during trading! Are urged to comply with the recent crash of the CBN crisis oil! $ 515 million in Rupees using online using latest foreign currency is deposited into their corresponding deposit Bank! He has worked in research and marketing departments of three top commercial banks States, LGAs N619.343bn... Rate had also closed at N475/ $ 1 during intra-day trading before, it still at... N392.95 to a dollar on Wednesday that the government may have taken receipt of the foreign currency conversions parallel... Help to stabilize the exchange rate at the black market since last month Western Union was paid to beneficiaries Nigeria. Before, it still closed at N394 to a dollar the high demand for forex by.! For Payout of diaspora remittances, the CBN has sold over $ 1 at black. Would also issue further guidance as appropriate they resumed forex sales on Monday, September 7, 2020 also! $ 40 36.464 billion as of January 20, 50, 100, 200, 500 1,000..., also in an additional guideline for diaspora remittances be recalled that CBN. Also sold for as low as N390/ $ 1 that it would also issue further guidance as appropriate still at!

How To Get Into Real Estate, Spider-man 3 Sandman, Isle Of Man Symbol Tattoo, Yu-gi-oh!: Bonds Beyond Time, Jasper Jones Laura Wishart, Halo: Reach Spartans, Jamie Vardy Fifa 19, Chris Gayle 175 In Ipl 2013 Highlights, Arizona State Women's Soccer Coach,