Dollar To Naira Today Exchange Rate News, 30 October 2023 both CBN Official Market Rates and abokifx Black Market Rates.
Check the US Dollar to Nigerian Naira exchange rates for October 30, 2023, here. We list both official and black market rates, which change frequently due to ongoing trading. For the most current info, revisit this page often
Dollar to Naira 30 October 2023
On October 30, 2023, sources from Bureau De Change (BDC) confirmed that the exchange rate for the US Dollar to the Nigerian Naira in the Lagos Black Market is N1140 for buying and N1150 for selling.
Dollars to Naira Today Black Market 30/10/2023
|Dollar ($)||Buying (₦)||Selling (₦)|
CBN Official Dollars to Naira Today 30/10/2023
On October 10, 2023, the Central Bank of Nigeria (CBN) exchange rate for the US Dollar to the Nigerian Naira in the Official Market is N798.736 for buying and N799.736 for selling
|Dollar ($)||Buying (₦)||Selling (₦)|
Explanation: What’s Causing the Nigerian Naira to Drop to Record Lows?
The Nigerian naira is getting very close to reaching 1,000 naira for one US dollar. Last week, it fell to an all-time low of 999 naira per dollar, as per data from Refinitiv. This drop in value is mainly happening in the unofficial market, where the naira is traded without government regulations.
In June, President Bola Tinubu removed controls on foreign currency in Nigeria, hoping to encourage more transactions through the official market and unify the exchange rates for the naira. However, instead of stabilizing the currency, this move has made it weaker and increased inflation.
Here’s what you should know about why the naira is losing value.
Why is the Naira Losing Value?
The central bank of Nigeria has a backlog of people and businesses wanting to exchange their naira for dollars officially. This backlog forces them to turn to the black market, where they can buy dollars unofficially.
Over the past few years, the amount of dollars coming into Nigeria has been decreasing due to lower investments and reduced exports of crude oil, which makes up over 90% of the country’s export earnings. When President Tinubu lifted the currency controls, many were hopeful that it would become easier to obtain foreign currency, but that hasn’t happened yet.
How Large is the Backlog of Foreign Currency?
Nigeria has nearly $7 billion in outstanding forex agreements, which were bought by companies from local banks. These banks used their own money to repay foreign loans when the central bank didn’t provide the dollars. As a result, companies can’t get new letters of credit, and the banks are owed dollars. The new central bank governor, Yemi Cardoso, has made clearing this backlog a priority, but no one knows how long it will take.
Some experts suggest that these agreements could be extended for 24 to 36 months, giving the central bank more time to find the necessary dollars.
How Big Are Nigeria’s Foreign Exchange Reserves?
According to central bank data, Nigeria’s foreign exchange reserves dropped from $37 billion in January to $33.5 billion in September. In August, the central bank released audited accounts for the first time since 2018, revealing that the reserves included a $19 billion commitment in derivatives, which reduced the available liquid reserves.
JPMorgan estimated that the country’s net foreign exchange reserves were only $3.7 billion by the end of 2022, much lower than previous estimates. Nigeria’s crude oil surplus account has also significantly decreased over the years.
Will the Central Bank Allow Forex Open Positions?
Nigerian banks are not allowed to hold open positions in the foreign exchange market, meaning they cannot buy foreign currency for their own use or speculate on its value. These open positions are used by banks to finance short-term trade without relying on the central bank for transactions. This helps create a fully functioning forex market.
If banks were allowed to hold open positions in foreign currency, it could lead to further depreciation of the local currency because they would determine exchange rates based on supply and demand.
Nigeria’s 2024 budget assumes an exchange rate of 700 naira to one US dollar, while the finance minister argues that the unofficial market rate of 1,300 naira doesn’t reflect the true value of the naira. Some experts predict that if the naira remains weaker on the parallel market, more devaluations and increases in inflation are likely to occur.