• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

Naira collapses to N840/$ on parallel market as CBN rebrand turns into nightmare

3 years ago
in Banking & Finance, Economy, Editor's pick, Features, highlights, Home, home-news, latest News, Markets
1 min read
0 0
0
58
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

RelatedPosts

The Global Push for a Just Transition in Energy Jobs

Why the IEA Reinstated Its “Business as Usual” Scenario

GRA Targets Offshore Income in Expanded Tax Compliance Drive

Naira collapses to N840/$ on parallel market as CBN rebrand turns into nightmare

Nigeria’s beleaguered currency, the Naira has slumped to a record low against the dollar on the widely used parallel market as confounded Nigerians rush to buy greenbacks a week after the central bank said it would redesign higher-value notes.

The CBN policy has turned into a rout with currency traders in the unauthorized parallel market offering as much as 830-850 naira per dollar on Tuesday in Lagos.

Umar Salisu, a bureau de change operator who tracks the data in the nation’s commercial capital said tgere is frantic demand for tge dollar.

The record low widens the spread between the official exchange rate, which closed at 442.49 to the dollar, to the largest-ever gap of 88%.

Demand for dollars in Africa’s largest economy has surged since the central bank last month announced a plan to replace 200-, 500- and 1,000-naira notes from mid-December, a policy now described by many as reckless.

The old bills will cease to be legal tender at the end of January. The central bank argues that the redesign will mop up excess cash and help it better control money supply, while curbing criminality.

The central bank claims that as much as 85% of currency in circulation is outside the vaults of the nation’s banks, as has been the case for decades in Nigeria.

Street traders of the currency have had to pool resources in order to meet the increased demand, Salisu said in a Bloomberg interview.

“Buyers come and we don’t have enough to give them, so we share the business with other traders.”

In the capital, Abuja, where rates are generally higher, the naira traded as high as 845 per dollar, while in the northern commercial city of Kano, the rate hit 830, according to street traders.

Nigeria maintains a multiple-exchange-rate regime, dominated by an official spot rate that is tightly controlled by the central bank. In the unauthorized black market, the currency is freely traded.

Finance Minister Zainab Ahmed warned that the currency redesign may weaken the naira as residents rush to change the old notes.

But President Muhammadu Buhari backed the central bank, arguing the move would punish currency hoarders and curb inflation that hit a 17-year high in September.

Even the president himself must now acknowledge that the policy he has said he endorsed is causing more havoc.

Africa’s most populous nation is in the throes of a debilitating inflation crisis caused largely by the volatility of the exchange rate according to leading Economist, Busmarck Rewane who has popularised a model measuring factors responsible for the surge in Nigeria’s inflation.

The looming Jan. 31 deadline, when the old notes will expire, is driving the rush for dollars, said Abdullahi Tanko, a currency trader in Kano. “They are trying to beat the deadline,” he said.

Source: businessdayng
Tags: AFCFTACentral Bank of NigeriaCentral Bank of Nigeria (CBN)CoronavirusCovid-19COVID-19 pandemicghanaIMFinflationNaira collapses to N840/$ on parallel market as CBN rebrand turns into nightmareNigeria
No Result
View All Result

Highlights

Gold Boom Drives Rising Costs for Australian Producers

La Liga: Barcelona Stages Late Comeback Against Levante as Atletico Madrid Drops Points Again

Premier League: Spurs Stun Man City at Etihad; Arsenal Dominates Leeds to go Top

CHAN 2024: Senegal, Sudan Complete Semifinal Lineup

From Promise to Peril: How Exam Fraud is Eroding Ghana’s Educational Soul

The 10 Fastest-Growing Trading Nations in Africa

Trending

Features

The Global Push for a Just Transition in Energy Jobs

August 24, 2025

The Global Push for a Just Transition in Energy Jobs For years, energy workers from the fossil...

Why the IEA Reinstated Its “Business as Usual” Scenario

August 24, 2025

GRA Targets Offshore Income in Expanded Tax Compliance Drive

August 24, 2025

Gold Boom Drives Rising Costs for Australian Producers

August 24, 2025

La Liga: Barcelona Stages Late Comeback Against Levante as Atletico Madrid Drops Points Again

August 24, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.