Latest CBN News and Dollar to Naira Update Today 15 September 2023 can be accessed below.
In this article, we will delve into the latest developments regarding the Central Bank of Nigeria (CBN) and provide you with the most up-to-date Dollar to Naira Black Market rates as of September 15, 2023. We will also explore the factors that contribute to the fluctuations in these rates and discuss strategies to manage currency exchange risk in the volatile Dollar to Naira Black Market.
Table of Contents
- DSS arrests Fakunle, CBN finance director
- 1.1 Background
- 1.2 Investigation Details
- 1.3 Ongoing Developments
- CBN drives investments for rehabilitation of moribund ports
- 2.1 Enhancing Port Efficiency
- 2.2 Collaborative Efforts
- 2.3 Economic Implications
- CBN to sanction forex operators for market infractions
- 3.1 Regulatory Actions
- 3.2 Compliance Measures
- Forex crisis: BDCs ask CBN to increase its minimum capital
- 4.1 ABCON’s Request
- 4.2 Consolidation Approach
- Dollar to Naira Black Market Rate Today
- 5.1 Current Dollar to Naira Black Market Rates
- 5.2 CBN Official Rates
- 5.3 Understanding the Fluctuations
- Managing Currency Exchange Risk with a Focus on Dollar to Naira Black Market
- 6.1 Currency Exchange Risk
- 6.2 Hedging Strategies
1. DSS arrests Fakunle, CBN finance director
1.1 Background
The outgoing Finance Director at the Central Bank of Nigeria (CBN), Benjamin Fakunle, finds himself in a precarious situation. He was arrested and detained by the Department of State Service (DSS) amid concerns surrounding the recently published seven-year audited accounts of the CBN. These accounts are under scrutiny for alleged deviations from accounting and reporting guidelines.
1.2 Investigation Details
Fakunle, who had just retired, was apprehended during his retirement party in Abuja. He is currently being interrogated about the utilization of accounting guidelines that allegedly diverged from the International Financial Reporting Standards (IFRS) for the CBN’s published accounts. Additionally, questions arise concerning a reported N401 million payment for the document, contrary to rules set by the Financial Reporting Council of Nigeria.
1.3 Ongoing Developments
This arrest is part of a broader investigation into the CBN, led by Special Investigator Jim Obazee, appointed by President Bola Tinubu. The Deputy Governors and other senior CBN officials have also been questioned, contributing to a climate of uncertainty in the apex bank. Notably, former CBN Governor Godwin Emefiele remains in DSS custody, following his arrest in June 2023.
2. CBN drives investments for rehabilitation of moribund ports
2.1 Enhancing Port Efficiency
The Central Bank of Nigeria (CBN) has initiated efforts to revitalize inactive ports across the country. This move aims to improve efficiency and alleviate congestion in Nigeria’s ports industry. The announcement came during the Nigerian Ports and Trade Investment Forum, where Mr. Ayoola Kadiri, Assistant Director of the Development Finance Department at the CBN, outlined the plan.
2.2 Collaborative Efforts
The CBN is actively seeking investors to participate in the rehabilitation of these dormant ports, which will facilitate the growth of Nigeria’s export trade. Collaboration with the Nigerian Exports Promotion Council, Nigeria Customs Service, and Nigerian Ports Authority is underway to streamline port processes and enhance efficiency.
2.3 Economic Implications
Efforts to modernize ports are not only vital for trade efficiency but also for economic development in Nigeria. The move aligns with the nation’s goal of promoting non-oil exports, benefiting both businesses and the overall economy.
3. CBN to sanction forex operators for market infractions
3.1 Regulatory Actions
The Central Bank of Nigeria (CBN) has issued a stern warning to International Money Transfer Operators (IMTOs) involved in foreign exchange arbitrage. This comes after the CBN observed breaches of its guidelines, including arbitrary rate quotes and other questionable practices.
3.2 Compliance Measures
IMTOs are now required to quote rates within a permissible range, specifically between -2.5 per cent and +2.5 per cent around the previous day’s closing rate of the Nigerian Foreign Exchange Market. Non-compliance could result in sanctions, including forced sales to the CBN, operational suspensions, and loss of operating licenses.
4. Forex crisis: BDCs ask CBN to increase its minimum capital
4.1 ABCON’s Request
The Association of Bureau De Change Operators of Nigeria (ABCON) has urged the Central Bank of Nigeria (CBN) to raise the minimum capital requirement for forex traders from N35 million to N350 million. This significant increase aims to boost their capacity to handle diaspora remittances and efficiently channel foreign exchange to businesses.
4.2 Consolidation Approach
ABCON’s President, Aminu Gwadebe, has proposed a merger among BDCs to meet the new capital requirement. This consolidation strategy is similar to the banking sector’s consolidation in 2004. It is expected to reduce the number of BDCs and enhance their collective capacity.
5. Dollar to Naira Black Market Rate Today
5.1 Current Dollar to Naira Black Market Rates
As of September 15, 2023, the Dollar to Naira Black Market rates are as follows:
- Buying: ₦940
- Selling: ₦950
These rates are subject to rapid fluctuations within hours due to several factors.
5.2 CBN Official Rates
The Central Bank of Nigeria (CBN) also influences exchange rates. On the same date, the CBN’s official rates for the US Dollar to the Nigerian Naira were as follows:
- Buying: ₦753.862
- Selling: ₦754.862
5.3 Understanding the Fluctuations in Dollar to Naira Black Market Rates
Several factors contribute to the fluctuations in Dollar to Naira Black Market rates, including economic conditions, political stability, and market sentiment. These variables create uncertainty, affecting the exchange rate.
6. Managing Currency Exchange Risk with a Focus on Dollar to Naira Black Market
6.1 Currency Exchange Risk
Given the volatility in exchange rates, businesses involved in international trade must manage currency exchange risk effectively. Hedging strategies, such as forward contracts and options, can mitigate the impact of adverse rate movements in the Dollar to Naira Black Market.
In conclusion, the CBN’s actions, coupled with market dynamics, continue to influence the Nigerian economy. Staying informed about the latest developments and adopting sound risk management strategies are essential in navigating the volatile currency landscape. For the most current rates, always refer to reliable sources.
FAQs
- Is it advisable to invest in the Nigerian Naira considering these fluctuations?It’s crucial to consult with financial experts before making any investment decisions. The Naira’s volatility should be carefully considered when planning investments.
- How can businesses protect themselves from exchange rate fluctuations?Businesses can employ hedging strategies, such as forward contracts and options, to mitigate currency exchange risk.
- What impact can the rehabilitation of moribund ports have on Nigeria’s economy?Revitalizing ports can significantly improve trade efficiency and contribute to economic development by promoting non-oil exports.
- Why is the CBN increasing the minimum capital requirement for forex traders?The CBN aims to enhance the capacity of forex traders to handle diaspora remittances and efficiently allocate foreign exchange.
- Are there any official resources for tracking real-time exchange rates?Yes, you can refer to the Central Bank of Nigeria’s official website and trusted financial news sources for up-to-date exchange rate information.