Black Market, Central Bank of Nigeria, Currency Devaluation, Exchange rates, multiple currency regimes, naira, OTC, World Bank

In a possible policy shift, the Central Bank of Nigeria (CBN) recently allowed the local naira currency to briefly drop to a new low of USD$1 for 419.75 nairas on May 14, 2021. However, by close of business the naira had recovered and was trading around 411.25. Before the latest adjustment, the naira had fluctuated between 380 and 381 to the dollar since July last year.

Unifying Multiple Exchange Rates

Meanwhile, a report in the Nigerian media has speculated that the seeming devaluation of the naira indicates that the CBN is now working towards “unifying multiple exchange rates.†According to the report, Nigeria operates multiple currency regimes and this often frustrates businesses. Consequently, some institutions including the World Bank have called for the unification of rates in order to attract investment into the West African state.

In the meantime, the Nigerian apex had (in addition to allowing markets to determine the exchange rate) already stopped availing data on the naira’s official rate since May 11, 2021. It is these moves that have prompted some Nigerian economic experts to speculate on the CBN’s next possible moves. In the report, one currency trader is quoted saying:

Black Market Exchange Rate Unchanged

Besides the OTC spot rate, the Nigerian government has reportedly been using an exchange rate of 410 “for its business as it tries to boost earnings from crude sales.†On the other hand, the CBN recently revised the futures rate on the naira upwards to 435.81 for a 150-day futures contract.

In the meantime, it remains to be seen if the naira exchange rate adjustment will finally result in the black-market exchange rate dropping. At the time of writing, the naira exchange rate on the black market largely unchanged at 480 nairas for every dollar.

Do you think the official naira exchange rate adjustment will end the parallel market for this resource? Tell us what you think in the comments section below.

Du lịch nhật bản, hướng dẫn du lịch Nhật và đánh giá địa điểm Nhật Bản Japan travel news, japan travel guides, japan holiday destinations and japan reviews

RELATED NEWS

African Fintech Start-up Chipper Cash Raises $100 Million — CEO Says No Crypto Services for Nigeria

Chipper Cash, an African fintech firm that specializes in facilitating cross-border payments, recently closed a $100 million Series C funding round. Taking the lead in what is now Chipper Cash‘s third fundraising round in the past twelve months is the venture capital (VC) firm, SVB Capital. The VC firm is an investment arm of U.S. […]

Xem chi tiết: African Fintech Start-up Chipper Cash Raises $100 Million — CEO Says No Crypto Services for Nigeria

Nigeria’s Naira Loses Ground on Forex Black Market Just a Few Days After Devaluation

The Nigerian naira currency lost further ground against major currencies after it depreciated to 493 nairas for one dollar on the black market on May 25, 2021. Before the latest depreciation, the currency had stabilized at around 485 nairas to the dollar. This was shortly after the exchange rate dropped to a three and a […]

Xem chi tiết: Nigeria’s Naira Loses Ground on Forex Black Market Just a Few Days After Devaluation

South Korea’s ‘Kimchi Premium’ Returns, BTC Prices Up 8% Higher Than Global Average

As cryptocurrency regulation heats up worldwide, South Korean officials have been increasing regulatory discussions concerning the swelling crypto economy. While digital currency markets like bitcoin have tumbled in value in recent times, global crypto market prices have increased across the board on Monday. In South Korea, crypto-assets like bitcoin are once again experiencing a ‘kimchi […]

Xem chi tiết: South Korea’s ‘Kimchi Premium’ Returns, BTC Prices Up 8% Higher Than Global Average

Nigeria’s Naira Loses Ground on Forex Black Market Just a Few Days After Devaluation

The Nigerian naira currency lost further ground against major currencies after it depreciated to 493 nairas for one dollar on the black market on May 25, 2021. Before the latest depreciation, the currency had stabilized at around 485 nairas to the dollar. This was shortly after the exchange rate dropped to a three and a […]

Xem chi tiết: Nigeria’s Naira Loses Ground on Forex Black Market Just a Few Days After Devaluation

Central Bank of Nigeria Governor Says “Digital Currency Will Come to Life” but Attacks Volatile Cryptocurrencies

Central Bank of Nigeria (CBN) governor, Godwin Emefiele, says digital currency “will come to life even in Nigeria†just a few months after the central bank ordered banks to stop serving the crypto industry. While acknowledging his country’s position as one of the leading crypto markets in the world, Emefiele however insists his organization is […]

Xem chi tiết: Central Bank of Nigeria Governor Says “Digital Currency Will Come to Life” but Attacks Volatile Cryptocurrencies

Former US Treasury Secretary Larry Summers Says Cryptocurrency Is Here to Stay as Digital Gold

Former U.S. treasury secretary and chief economist at the World Bank, Larry Summers, says cryptocurrency is here to stay as a kind of digital gold. He believes that people want an alternative to gold that is “separate and apart from the day-to-day workings of governments.†Former World Bank Economist Larry Summers Sees Bitcoin as Digital […]

Xem chi tiết: Former US Treasury Secretary Larry Summers Says Cryptocurrency Is Here to Stay as Digital Gold

South Korea’s ‘Kimchi Premium’ Returns, BTC Prices Up 8% Higher Than Global Average

As cryptocurrency regulation heats up worldwide, South Korean officials have been increasing regulatory discussions concerning the swelling crypto economy. While digital currency markets like bitcoin have tumbled in value in recent times, global crypto market prices have increased across the board on Monday. In South Korea, crypto-assets like bitcoin are once again experiencing a ‘kimchi […]

Xem chi tiết: South Korea’s ‘Kimchi Premium’ Returns, BTC Prices Up 8% Higher Than Global Average

Former US Treasury Secretary Larry Summers Says Cryptocurrency Is Here to Stay as Digital Gold

Former U.S. treasury secretary and chief economist at the World Bank, Larry Summers, says cryptocurrency is here to stay as a kind of digital gold. He believes that people want an alternative to gold that is “separate and apart from the day-to-day workings of governments.†Former World Bank Economist Larry Summers Sees Bitcoin as Digital […]

Xem chi tiết: Former US Treasury Secretary Larry Summers Says Cryptocurrency Is Here to Stay as Digital Gold

Nigeria Bureau De Change Association Boss Accuses Speculators of Destabilizing the Naira— Says Central Bank Funding Will End Currency Woes

Nigeria’s Cryptocurrency Traded Volumes on P2P Platform Top $1.5 Billion

Nigeria Stopping the Rejection of Old or Torn USD Notes Underlines Why Crypto Is a Better Reserve Currency

Nigerians Shun Local Currency— Seek to Protect Wealth From Inflation and Currency Depreciation with Foreign Currency

Nigeria Money Printing Controvesy: CBN Governor’s Remarks Attacked, Government Denies It Financed Deficit via Money Printing

Nigeria’s SEC in Talks With Central Bank of Nigeria Over Crypto Regulation— 2020 Crypto Guidelines Still Suspended

Central Bank of Nigeria Blocks Fintech Startups From Accessing KYC Service— Decision Described as an ‘Attack on All Fintechs’

P2P Bitcoin Trade Volumes Surge in Kenya and Ghana but Nigeria Still Dominates

Other Articles