Home News Finance Tinubunomics: Nigerian Foreign Exchange Market Heading to ₦2000/$1
FinanceNews

Tinubunomics: Nigerian Foreign Exchange Market Heading to ₦2000/$1

472
Tinubunomics Nigerian Foreign Exchange Market Heading to ₦2000$1

Amid a 29.9% inflation rate, the Nigerian Foreign Exchange market (NFEM) on Monday recorded a new low of naira to dollar rate at ₦1606.32 to 1US Dollar.

According to the Central Bank of Nigeria, the foreign exchange rate of dollar to naira hits a buying rate of 1605.32 and sells for ₦1606.32 to $1 at the official market.

West Africa Weekly gathered that parallel market rate from Zone 4, Wuse Abuja, a bustling hub for currency exchange. The Dollar was bought at ₦1,690.00 and sold at ₦1,700.00 today.

However, prices of the black market rate vary slightly in different locations.

Meanwhile, the CBN had earlier released a circular through the Trade and Exchange Department, depicting its directives to all authorized dealer banks with aims to control liquidity in the domestic foreign exchange market.

In part, the circular reads:

The Central Bank of Nigeria (CBN) has observed that proceeds of crude oil exports by International Oil Companies (IOCs) operating in Nigeria are transferred offshore to fund parent accounts of the IOCs (otherwise referred to as “cash pooling”). This has an impact on the liquidity in the domestic foreign exchange market.

In line with CBN’s ongoing reform in the Nigerian foreign exchange market, it has given measures to address the liquidity flow of foreign currencies in Nigeria, including allowing banks to pool cash on behalf of IOCs, subject to a maximum of 50% of the repatriated export proceeds while the balance of 50% is to be made 90days after from the date of inflow of the export proceeds.

Also, documentation fulfilment is required, including prior approval of the CBN for the repatriation of funds under the “Cash Pooling” transaction and agreement with the parent entity of the IOCs operating in Nigeria.

About The Author

Related Articles

NewsSecurity

Sudan War: RSF Leader Agrees To Attend US-Mediated Ceasefire Talks

The paramilitary Rapid Support Forces (RSF) has agreed to participate in US-mediated...

News

NIGER: Dismissed Employees of Chinese Oil Company Protest Nonpayment of Salaries

Nigerien employees of a Chinese oil company, CNPC, who are working on...

NLC Planned Protest
News

NLC Denies Withdrawing From Planned Protest, Stands In Solidarity With The People

The Nigeria Labour Congress, NLC, has denied reports that it has pulled...

Netflix Subscription Prices Nigeria
EntertainmentNews

Netflix Increases Subscription Prices In Nigeria For The Second Time In 3 Months

Netflix has raised its subscription prices again in Nigeria. The Premium Plan...