MARKET NEWS; JANUARY; 2020; 2019; 2018; 2017; 2016; ANALYTICS; APPS. Adeyemi holds a PhD in Accounting Sciences. A dual exchange rate is a setup created by a government where their currency has a fixed official exchange rate and a separate floating rate applied to specified goods, sectors or trading conditions. READ: Naira stabilizes at black market as external reserve rises by $515 million in 12 days. Nairametrics reported on Wednesday that the government may have taken receipt of the $1-1.5 billion World Bank Loan. In dual exchange systems, certain parts of an economy may enjoy advantages over others, leading to distortions on the supply side based on currency conditions rather than demand or other economic fundamentals. Get daily black market exchange rates from dollar to naira, pounds to naira and euro to naira. BEVERLY HILLS, January 17, (THEWILL) - The exchange rate platform recently introduced by the Association of Bureau De Change Operators of Nigeria (ABCON) aims to counter the negative impact of speculative rates published by popular online platform, Aboki Forex (Aboki.fx), and the others, says ABCON President, Aminu Gwadabe The body of licensed parallel market … By using Investopedia, you accept our. Thanks for your effort at FX update. Please keep it up. Our prices are a guide and could be slightly different from the price you get when you eventually decide to buy or sell. The N415.76 to a dollar was the highest rate during intra-day trading before it closed at N394 to a dollar. Forex Market Crypto Market Parallel Market … Explore Economic Research Data From Nairametrics on Nairalytics. Such systems also have the potential to trigger black markets as government-mandated restrictions on currency purchases force individuals to pay much higher exchange rates for access to dollars or other foreign currencies. achieve unification of the official and the parallel exchange rates so as to integrate the parallel market into the formal economy.7 In view of the foreign, then, the principal objectives of this study are: • To identify the determinants of the spread between the parallel and the official exchange rates … The average daily forex sale for last week was about $169.93 million, which represents a huge increase from the $34.5 million that was recorded the previous week. It is nice to know that you have a Research team that includes Dr Adeyemi Adebayo. CBN. PARALLEL market exchange rates have tumbled from a peak of US$1:RTGS$9 recently and remain frozen at US$1:RTGS$6 since last week amid indications the rate … You may need to watch closely. This they believe will help to stabilize the exchange rate and discourage hoarding. 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 exchange rate at the parallel market closed at N475/$1 on the previous trading day of January 19, 2021. However, during intraday trading, the exchange rate traded for as high as N415.76/$1 the highest intraday trading tracked by Nairametrics. A dual or multiple foreign-exchange rate system is usually intended to be a short-term solution for a country to deal with an economic crisis. The exchange rate between the naira and the British pound sterling closed at ₦630/₤1 on Friday, January 22nd 2021. Convert foreign currencies instantly with the Abokifx calculator. 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. The naira had earlier depreciated by N30 against the dollar, as the parallel market exchange rate rose sharply to N500 per dollar on Monday, November 30th from N470 per dollar on … dollar selling at N462 to $1 compared to N460 against the … The exchange rate between Nigeria’s Naira and United States’ dollar as at today, Thursday, January 21, stands at ₦475/$1 in the parallel market while the official rate of the Central Bank of Nigeria (CBN) stands at N379/$. The CBN governor says the parallel foreign exchange market only accounts for a share of the market that does not exceed 5%. Proponents of such a policy believe that it helps the government by maintaining optimal production and distribution of exports, while keeping international investors from rapidly devaluing the currency in a panic. Capital account transactions, on the other hand, may be is determined by a market-driven exchange rate. Investopedia uses cookies to provide you with a great user experience. ... LAGOS PARALLEL MARKET RATES… Forex turnover at the Investor and Exporters (I&E) window increased significantly by 233.6% on Wednesday, January 20, 2021. The exchange rate is still being affected by low oil prices, dollar scarcity, a backlog of forex demand, and a shaky economy that has been hit by the coronavirus pandemic. ‘You see goods and services are priced at the parallel market rate (black market) which is usually about double the official rate.’ ‘The spread between the legal exchange rate and that prevailing in the informal street market produces strong incentives for the diversion of a variety of current-account receipts from legal channels to the parallel market.’ PARALLEL market exchange rates have tumbled from a peak of US$1:RTGS$9 recently and remain frozen at US$1:RTGS$6 since last week amid indications the rate could drop further after Government secured a US$500 million facility to boost efficiency on the inter-bank forex market. I disagree with you last sentence, in that the market is more than parallel; it is typically illegal as well as parallel. After that collapse, the dollar exchange rate … Your email address will not be published. On January 15, 2021, the exchange rate between the naira and the dollar remained stable to close at N394.67/$1 at the NAFEX Daily Parallel Market Exchange Rate - ₦470/$1 - Knowledge base Socials The Lebanese Lira started taking shape in 1924 and settled at around 3 Lira for one USD in the 1960s. The external reserve has risen to $36.464 billion as of January 19, 2021. The exchange rate between the naira and the dollar appreciated closing at N394/$1 at the NAFEX window. This kind of system is criticized for spawning black-market trading. We strive to bring you the most accurate rates in the market and our independence means we have no bias on these rates… The opening indicative rate was N394.16 to a dollar on Thursday, the same rate that was recorded on Tuesday, January 20, 2021. The rate had also closed at ₦630/₤1 on Thursday, January 21st 2021. READ: Naira strengthens at NAFEX window despite 61% drop in dollar supply. 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. 340 (buying) / 342 (selling) Parallel. The US dollar closed at ₦470/US$1 in the parallel market. The opening indicative rate was N394.17 to a dollar on Wednesday, representing a 21 kobo drop when compared to the N393.96 that was recorded on Tuesday, January 19, 2021. It promised continued monitoring of developments in this regard, adding that it would also issue further guidance as appropriate. The parallel market rates represent the average rate from various black market dealers on the Lagos mainland and island. Why is it quoted and referenced to even by the apex bank as if it’s recognized by the relevant laws of the land? The ARS (Argentinian Nuevo Peso) is the national currency of Argentina. These include exporters and importers who may not properly account for all of their transactions in order to maximize currency gains. If the parallel market is not a legal trading platform, the government should outlaw it immediately and save the naira and the economy from its disruptions and confusion. Motivated by profit, beneficiaries of such systems may push to keep them in place well beyond their period of usefulness. ... Other Parallel 2; ATM Rates. Nnaji. It has been referenced by the United Nations, the United States Department of Justice, the Ministry of Finance of Lebanon, the World Food Programme, Bloomberg, CNBC, Le Monde, the Financial Times, and many others. He has worked in the Educational Sector and as an Independent Consultant. In a dual exchange rate system, currencies can be exchanged in the market at both fixed and floating exchange rates. The exchange rate between the naira and the US dollar for today (Friday, January 22nd 2021), closed at ₦470/US$1 in the parallel market. Natasha Chamba, Business Reporter . The floating rate is often market-determined in parallel to the official exchange rate. Understanding the History and Disadvantages of a Fixed Exchanged Rate, Floating Exchange Rate Definition and History. Under the system, imports and exports were traded at an exchange rate approximately 7% below the one-to-one peg between the Argentine peso and the U.S. dollar that remained in place for the rest of the economy. The exact rate at this present moment (because it is updated in realtime) is the one you have seen above. This move was intended to make Argentine exports more competitive and provide a burst of much-needed growth. 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. Forex turnover at the Investor and Exporters (I&E) window dropped by 13.9% on Thursday, January 21, 2021. In many countries there is a distinction between the official exchange rate for permitted transactions and a parallel exchange rate that responds to excess demand for foreign currency at the official exchange rate. Competitive devaluation is a series of currency depreciations that nations resort to in tit-for-tat moves to gain an edge in international export markets. I first came across the term in the 1970s while living in a country with a government controlled foreign exchange rate, two rates … Instead, Argentina’s currency remained volatile, leading initially to a sharp devaluation and later the development of multiple exchange rates and a currency black market that have contributed to the country’s long period of instability. "parallel market" to mean parallel market rate. A dual exchange rate system is seen as a middle ground between a fixed rate and a market-driven devaluation. For example, shops currently use a rate of $95-100 ZWL cash per 1 USD but when you sell on the streets you will only get about $85 ZWL; This site is about prices hence the rate cited above **Due to an acute change problem in the market … The rate had also closed at ₦ 470/US$1 on … The euro is trading at N545/€1 today, having added … It can be recalled that the CBN, had in November 2020, Also in an additional guideline for diaspora remittances, the CBN. READ: FIRS hits 98% of target as it collects N4.95 trillion for 2020 fiscal year, READ: Naira falls at black market despite over 100% improvement in dollar supply, READ: Naira falls at NAFEX window despite 56.6% improvement in dollar supply. Todays Exchange Rate In Naira. 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. … Could these be included to make the data more useful to your readers? See table below for parallel market exchange rate dating to 2019. Black Market Exchange Rate of Dollar to Naira. The price quoted daily on this page represents the average price obtained by our Research Team. US Dollar rate is ₦475 against Naira in Black Market (Lagos) today, January 22, 2021. The low greenback liquidity at the official exchange window, where the central bank maintains a largely inflexible rate, has increased demand in the parallel market where the rate is … The Naira depreciated on Tuesday at the parallel segment of the foreign exchange market against the U.S (United States.) There are about 6 Forex windows maintained by the CBN each with a different exchange rate. READ: Naira strengthens at NAFEX window despite 38% drop in dollar supply. Sell rates: USD ₦ 475, EUR ₦ 580, GBP ₦ 648, CAD ₦ 385, ZAR ₦ 31, GHS ₦ 82, RMB ₦ 70, AUD ₦ 300, XOF ₦ 0.87, XAF ₦ 0.78, and AED ₦ 150; Buy rates… A dual exchange system can be used to lessen pressure on foreign reserves during an economic shock that results in capital flight by investors. The exchange rate at the parallel market closed at N475/$1 on the previous trading day of January 20, 2021. The offers that appear in this table are from partnerships from which Investopedia receives compensation. A floating exchange rate is a regime where a nation's currency is set by the forex market through supply and demand. Argentina adopted a dual exchange rate in 2001, following years of catastrophic economic troubles marked by recession and soaring unemployment. Black Market (Lagos) exchange rates for Naira today are. 400 (buying) 412 (selling) As you might have noticed, the difference is obvious. 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. It also sold for as low as N390/$1 during intra-day trading. 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. 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. Also, the exchange rate at the black market where forex traded unofficially still remained flat at N475/$1. The Interbank rates shows the current CBN exchange rates and official interbank rates. 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. 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 Naira depreciated against the dollar at the Investors and Exporters (I&E) window on Wednesday, closing at N394.17/$1. READ: Continuous increase in inflation rate may weaken economy – CBN report. The exchange rate between the naira and the European euro closed at ₦575/€1 on Friday, January 22nd 2021. On January 20, 2021, the exchange rate between the naira and the dollar depreciated closing at N394.17/$1 at the NAFEX (I&E Window) where forex is traded officially. READ: Nigeria faces prolonged exchange rate crisis as oil prices remain stuck at $40, The exchange rate at NAFEX trades at N415/$1 during Intra-day trading NAFEX as forex turnover rises by 233% rise. The most trusted platform to get the live exchange rates. The currency rises or falls freely, and is not significantly manipulated by the nation's government. Parallel exchange rate. A fixed rate would be reserved for certain transactions such as imports, exports and current account transactions. The black market for currencies is increasingly becoming prevalent in nations marked by certain adverse economic factors such as high inflation rates and unrealistically high exchange rates. It will certainly improve supply in that market and reduce the current premium of about N70/$ between the interbank rate and the parallel market rate,” he added. The exchange rate disparity between the parallel market and the official market is about N81, representing a 17% devaluation differential. 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. Currency depreciation is when a currency falls in value compared to other currencies. Learn how your comment data is processed. The exchange rate disparity between the parallel market and the official market is about N80.83, representing a 17% devaluation differential. Get daily black market exchange rates from dollar to naira, pounds to naira and euro to naira. Academic studies of dual exchange rate systems have also concluded that they do not fully protect domestic prices due to the shifting of more transactions than mandated to the parallel exchange rate as well as the depreciation of the parallel rate compared to the official rate. Critics of such a policy believe that such an intervention by the government can only add volatility to the market dynamics as it would increase the degree of fluctuation in normal price discovery. Simply reporting average exchange rates for the different foreign currencies leaves one wondering about the Size of the dataset (n count), range of the data (high/low), and the standard deviation (s). 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 CBN has frowned at activities of some IMTOs and unlicensed companies who continue to facilitate diaspora remittances into the country in Naira. Nigerian parallel market operators introduce platform for countrywide exchange rates ABCON says the new platform, Naijabdcs.com, would provide real-time foreign exchange rates … READ: The dangling fate of indigenous oil upstream operators. The exchange rate of Dollar to Naira is the exact equivalent of 1 Dollar in Naira. This represents a 17 kobo gain when compared to the N394.17/$1 that it closed on the previous trading day. The rate had also closed at ₦470/US$1 on Thursday, January 21st 2021. The apex bank’s reaction follows the contravention of its earlier directive that all diaspora remittances must be paid to the beneficiaries in dollars. parallel market meaning: an unofficial market for shares, currencies, etc., which works at the same time as the official…. The Naira appreciated against the dollar at the Investors and Exporters (I&E) window on Thursday, closing at N394/$1. The higher oil prices and steady production output have positively impacted Nigeria’s external reserves, rising sharply to $36.304 million according to central bank data dated January 14, 2020. Data is collated from various black market dealers on the mainland and island parts of Lagos State where forex is sold. This represents an 82 kobo gain when compared to the N393.35/$1 that it closed on the previous trading day. READ: UBS warns Bitcoins could disappear like Myspace. They steadily move their rates – most times, days ahead of the actual market rates, by playing on the knowledge that its site has become popular. 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 different exchange rates are intended to be applied as a way to help stabilize a currency during a necessary devaluation. It also sold for as low as N390/$1 during intra-day trading. Activity: US Dollar closed at ₦470/US$1 in the parallel market, READ ALSO: The risk of buying Forex at black market rate of N460/$1. This makes no change for USD rate … NairaWatch can report that the exchange rate on Wednesday, January 20, also closed at ₦475/US$1 in the parallel … The floating rate is often market-determined in parallel to the official exchange rate. I suspect the operators of Aboki FX deliberately manipulate the black market rate. We are a team of independent analysts whose primary focus is research into the Zimbabwean parallel markets as well as the stock market. Initial USD rate was noted as ₦475 at the beginning of this week on Monday, January 18, 2021. The most trusted platform to get the live exchange rates. On the flip side, the exchange rate at the black market where forex traded unofficially still remained stable at N475/$1. RATES BY BANK; RATES BY CURRENCY; RATES BY MONTH; BDC Rates; Aboki News. This is a daily tracker and updated close of business. In 1981, the dollar started to rise against the Lira, and it exceeded 2,800 Lira in September 1992. The rate had also closed at ₦575/€1 on Thursday, January 21st 2021. How do my friend transfer money from Nigeria to UK now? The hope would be that such a system can also alleviate inflationary pressures and enable governments to control foreign currency transactions. $ 36.464 billion as of January 19, 2021 into the country in naira country deal. 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