Naira downfall: top 7 People Benefiting from Naira crash

The recent free fall of Nigerian currency, naira has put many businesses in Nigerians into a halt while the prices of many commodities have skyrocketed. However, while many Nigerians are crying because of this others who are ‘opportune’ see this period as time to get rich. Seven (7) groups of people have been identified to be gaining from the recent Naira depreciation and would rather want naira to keep depreciating than appreciate. These top seven people benefiting from naira crash are;

naira to dollar

1. Speculators
The premium gap between the parallel market exchange rates and the official/interbank rates has increased the activities of traders who do not hedge, but who trades with the objective of achieving profits through the successful anticipation of price movements and this further worsening the currency situation. These market participants analyze and forecast future naira-dollar exchange rate movement; buy the hard currency in the hope of selling them at a profit. It’s not just speculators who have been benefiting the most from the misfortunes of the Naira. Several other market participants are also benefiting every single day the Naira plummets against the dollar at the parallel market.

2. Nigerians in Diaspora
Nigerians who lives, work and earn their income in dollar outside the country are finding this time as the best time. Nigerians living abroad reveal that they began started part-time currency business which involves trading their dollar or Pounds Sterling income for Naira at black market rate with which they invest in Nigeria. Some of them even have to go into borrowing cheap funds in hard currency for the purpose of this business transaction.

Nairametrics reveals that, “some believe this is the best opportunity to buy land and houses as the value of the dollar has now risen by about 70% against the Naira while property prices have been somewhat depressed”.

Again, following the restrictions imposed on money transfer outside Nigeria by CBN last year; the Nigerians in diaspora have been engaging in a quasi-money transfer services to other Nigerians whose children are abroad at transfer charge rate close to parallel market rates.

3. Commercial banks
Commercial banks are in this list of benefactors of Naira downfall. Since the downturn of oil sector in Nigeria, commercial banks have been in under pressure with many oil companies’ loans not being repay. However, they have posted massive gains from foreign exchange sector of their businesses as it can be seen in their income statements at the end of financial year 2014 and the first 9 months of 2015. Most people who purchase items online have attested that banks charge them as much as N290 to the dollar even though the CBN pegs the rate at around N199.05.

Banks’ staffs are also part of this list. They have taken the advantage of the scarcity of the hard currency to force foreign exchange users especially importers to pay close to parallel market rate for foreign currencies obtained from CBN. They oblige the customers to pay two cheques, one to the bank covering the official rate and the other to designated bank account covering the difference in the parallel market rate.

4. BDC operators and the Likes
In spite of ban imposed by CBN on BDC on sale of foreign exchange, BDCs are still thriving in many commercial cities in Nigeria as they have a way of sourcing the currencies from CBN official leakage window and diverting same to black market for over 70% profit margin. They are one of big benefactors of Nigeria’s foreign exchange woes.

5. Exporters
Businesses exporters are smiling now. Officially, revenues from their exports proceeds should naturally; be routed through the CBN as export proceeds. It is however clear that some of them move a chunk of that to the black market. Even though they knew they violates the exchange law; with gains as high as 80%, most of them find it difficult to resist the lure of selling their hoard at the black markets rather than at the official window.

6. Associates of the CBN and friends
It is also been report that people close to the management of the CBN or particularly the government are also befitting from the collapse of naira. They get preferential treatment from the CBN by buying at official rates rather than at the black market rate where a lot of Nigerians go to. Some of them even have to go back to black market to exchange at profit rate over 200%.

There are no sign of naira strengthening in near future. The condition may continue to deteriorate while these benefactors keep enriching themselves, unless the government acts fast.

For your questions and comments, you can use the comment box below.

Naira to Dollar exchange rate today(black market)

For those of us who might be interested in knowing daily currency exchange rate of the Naira to Dollar, Naira to Euro, Naira to pounds on both  black market and official bank exchange rate  , can get it here.

Updated: SEE THIS WEBPAGE SIDEBAR FOR NAIRA TO DOLLAR EXCHANGE RATE TODAY- BLACK MARKET AND OFFICIAL BANK RATE

26th June 2016 marks the End of Nigeria’s 15-Month Currency Peg.

New currency exchange rate regime begins. Trading started at 9:00 am (0800 GMT) this morning.  All the 24 commercial banks  participated. The unified market exchange rate (official bank exchange rate)  is 249 to 265 naira to the dollar. At 1000 GMT, official bank exchange rate was quoted at 262.50 naira against the dollar.

Naira to Dollar Black market rate in lagos Nigeria,  18/06/16, 20/06/ 2016, ……..

NGN usd USD gbp GBP eur EUR
BUY / SELL BUY / SELL BUY / SELL
20/06/16 330 / 345** 445 / 480** 360 / 380**
20/06/16 330 / 345* 450 / 500* 340 / 400*
18/06/16 330 / 335 450 / 500 340 / 390

Naira to Dollar Black market rate in Enugu Nigeria,  20/06/ 2016

BUY / SELL BUY / SELL BUY / SELL
20/06/16 320 / 330** 440 / 460** 360 / 380**
20/06/16 315 / 325* 450 / 500* 340 / 400*

 

Naira experiences its biggest daily depreciation against the dollar as it exchanged for N345 to a dollar in the black market today. This is N20 depreciation when compared with the closing exchange rate of N325 per dollar in the parallel market on Friday, 12th February.
Naira also depreciated by N45 against the British pound as the black market exchange rate rose to N485 per pound, N340 as on Friday.

naira to dollar black market today

However, naira remains relatively same at the official interbank foreign exchange market as the interbank rate (official exchange rate of naira to dollar) stood at N197.47 per dollar at the close of business yesterday, 15th February.

The gap between the interbank rate and the black market rate deepens to N147.53 per dollar from N127.53 per dollar last week.
It has been noted that the naira has been on a steady decline since January 12, 2016, when the Central Bank of Nigeria, CBN, stopped weekly dollar sale to BDCs. Consequent to this action, the naira traded at N265 per dollar in the black market. The steady depreciation was also compounded by inability of the CBN to meet foreign exchange demand.

Here is the dollar to naira exchange rate – black market today and official exchange rate (interbank rate).

            DOLLAR TO NAIRA EXCHANGE RATE-BLACK MARKET

NAIRA              DOLLAR    POUND    EURO
(NGN)                      (USD)    (GBP)           (EUR)
Buy / Sell   Buy / Sell    Buy / Sell

12/02/2016    330 / 335  446 / 452  350 / 360
15/02/2016     337 / 340  450 / 455  365 / 370
16/02/2016    345 / 350  465 / 470  367 / 375

UPDATED: For the latest and every other day naira to dollar exchange rate  changes for black  or parallel market , check the comment box below.

SEND THROUGH: WESTERN UNION TRANSFER

NAIRA        DOLLAR     POUND     EURO
(NGN)              (USD)        (GBP)             (EUR)

12/02/2016   193.83     286.71           217.97
15/02/2016  193.83    285.57          216.19
16/02/2016   193.83     284.90          215.69

UPDATED: For every other day naira to dollar exchange rate  changes – sending money via western union, you can check the comment box below.

CBN EXCHANGE RATES (INTERBANK RATE )

NAIRA           DOLLAR   POUND     EURO
(NGN)               (USD)      (GBP)            (EUR)

12/02/2016  197.00    286.46       222.26
15/02/2016  197.00    285.00        220.56

 

For questions and comments on black market naira to dollar exchange rate today, you can use the comment box below.