简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:The naira exchange rate has been stressed so much at the black Market again due to the wild dollar scarcity. Naira is today exchanged at N585 per $1 at the black market. This has been caused by the failure of the Nigerian commercial banks to provide enough dollars to many traders and travelers after the CBN dissolved the Bureau de Change in the country
By: Damian Okonkwo
The Nigerian exchange rate has be so much stressed at the black Market all through the month of April despite the efforts by the CBN to contain Inflation. Naira seem to have witnessed the strongest inflation so far in the first quarter this month of April. This has been caused by the shaky economy burdened by international debits and dependency on importations.
Many businesses today are crumbling in Nigeria with the dollar exchange rate at the black Market also known as the ABOKIFX skyrocketing to as high as N585 last week's Friday. The black market dealers claimed they bought dollar at N582 and now dsold for N585 on Friday evening, April 22, 2022. A repetition of incidence that occurred earlier last week during Easter seem to be gradually setting in again when dollar was sold for N600 on Easter Sunday evening.
What are the major reasons why the Naira exchange rate is increasing daily?
« The Central Bank Policy: The Naira exchange rate has increased drastically last year following the CBN new policy last year on July 27, 2021, that cut off the popular Bureau de Change from supplying dollar to traders. The CBN rather charge the Nigerian banks to provide dollars for commercial traders and travelers. Since then an artificial scarcity of dollars has been created in the exchange market as banks have not been able to supply enough dollars to Nigerians. The naira had lost value at a whooping N95 to the dollar in less than a year from N490/$1 to N585/$1 on April 22, 2022.
« High Unemployment rate: Nigeria despite being blessed with rich natural resources and able-bodied men and women, still tops the list as the country with the highest unemployment rate. The rate of poverty has so much increased today scaring investors away from the Nigerian Market.
« International Debts: It is very sad that Nigeria as a country still depends on the other Western countries including China for loans to offset her annual budgets. This has been the chief cause of Inflation on the naira as Nigeria ranks the most indebted country across the world with debts unrepaid running in billions of dollars
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
eToro strengthens its Australian market presence with the $80M AUD acquisition of Spaceship, expanding its long-term savings and superannuation offerings.
In the midst of the 2021 crypto and NFT boom, celebrities flocked to the burgeoning market of digital assets, promoting Non-Fungible Tokens (NFTs) as the next big thing. Fast forward to 2024, the glitter has faded, and many celebrity-endorsed NFTs have lost their allure. The question remains: what happened to celebrities’ NFTs, and why should this serve as a stark reminder for everyday investors?
Updated forex analysis shows USD weakness, focusing on key levels like EUR/USD, DXY bearish trend, and pivot points for major currency pairs.
TradingView and MetaTrader based on ease of use, customization, broker integration, and automation to find the best platform for your trading style.