CBN Official Naira To USD 8th July 2023 can be accessed below.
IMPORTANT NOTICE: Please keep in mind that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market) and has recommended individuals interested in Forex contact their respective banks before proceeding.
GoldenNewsNg reports that parallel exchange rate (black market rate) always differs from the CBN rate. The exchange rate between the USD and the Nigerian Naira significantly impacts the Nigerian economy.
As the Naira falls in value, inflation takes over the economy, which usually impacts the inhabitants. The Central Bank has stated that the Nigerian economy needs a significant turnaround and has asked Nigerians to work toward this goal, such as increasing exports.
The black market rate for dollars is frequently higher than the Central Bank of Nigeria (CBN). The CBN Exchange rate is the rate at which you can purchase or sell dollars for Naira on the CBN dollar-to-naira website.
Golden News reports that the dollar-to-naira bank rate is the rate you use when you buy something from a foreign website with your Naira MasterCard or Debit card from a Nigerian bank. These rates are almost always cheaper than those on the black/parallel market.
CBN official Naira to foreign exchange rate today…
The exchange rate between the Naira and the US dollar, according to the data posted on the Central Bank of Nigeria (CBN) Currency Exchange Rate where forex is official.
Below you can see the chart for the Nigerian Naira rate today compared to the Dollar.
|1 USD = 776.90 NGN|
|1 Dollars = 776.90 Nigerian Naira|
|The USDNGN rate as of 8 Jul 2023|
The Central Bank of Nigeria (CBN) allowed the Naira to depreciate by up to 36% on the official market, leading to an increase in the Peer-to-Peer (P2P) market. The Naira reached an exchange rate of almost N800/$. Nigerians are turning to stablecoins like the US dollar and USDT to protect themselves against inflation and potential devaluation of the Naira. The shortage of foreign currency in Nigeria, along with increased demand for dollars from importers and travelers, has contributed to the depreciation of the Naira.
The oil sector in Nigeria has been contracting due to factors such as oil theft, vandalism, and declining production. The CBN’s foreign exchange reserves have hit yearly lows at $34 billion. Major central banks raising interest rates have also led to a repatriation of foreign capital, resulting in a decrease in capital inflows by 28.10% quarter-on-quarter and 17.50% year-on-year in Q1 2022.
Moody’s warns that Nigerian banks could face trouble if companies fail to pay foreign exchange costs on imported goods, as banks provide trade finance for such transactions. Off-balance sheet trade-related exposures of rated Nigerian banks amounted to about $9.8 billion in 2022, posing risks to bank liquidity.
Nigeria frequently experiences severe foreign currency shortages as the central bank tries to stabilize the Naira. Moody’s highlights that commercial banks in Nigeria have lent a total of $10.4 billion in foreign currency to the central bank, creating new risks to bank liquidity.
Maintaining stability in the Naira depends not only on political stability, security, and investor confidence but also on the coordination between monetary and fiscal policies. The CBN’s new policy aims to promote exchange rate stability and predictability, with the Naira’s value determined by market fundamentals. However, efforts to stabilize the Naira in the past have been unsuccessful, emphasizing the need for effective implementation and addressing supply-side issues.