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Latest CBN News & Dollar to Naira Update Today 27 February 2024 (FX crises , Cement prices , Fuel price)

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Latest CBN News & Dollar to Naira Update Today 27 February 2024 can be accessed below.

In this latest update on the Central Bank of Nigeria (CBN) and the Dollar to Naira exchange rate for today 27 feb 2024 , we delve into the significant developments affecting the Nigerian economy. From the impact of FX crises , cement prices , Fuel price, CBN Restricting Nigerians from accessing Binance, and the challenges faced by the Naira in the foreign exchange market, we cover it all.

Price of Dollar to Naira Black Market Rate Today 27 February 2024

“What is the Dollar To Naira Black Market Exchange Rate for Today?”.

According to dealers in Zone 4, Wuse Abuja, which happens to be one of the leading BDC Centers in Nigeria, the Dollar was bought at ₦1500 and sold at ₦1550 today.

The table below shows the black market rate for those who want to sell and buy dollars with BDC operators or Abokis.

Dollar To Naira Black Market Rate Today
Buying Rate ₦1500
Selling Rate ₦1550

Forex Traders Sell Dollar at New Rates to Customers As Naira Depreciates by Over N90

The Nigerian currency, the naira, has experienced a notable decline in value against the US dollar across both the official and unofficial foreign exchange markets. Recent data highlights a significant drop, with the naira falling by over N90 in the official market and N32 in the unofficial market. This depreciation has raised concerns and prompted the Central Bank of Nigeria (CBN) to implement new guidelines aimed at curbing the activities of forex speculators, who are partly blamed for the currency’s poor performance.

Official Forex Market Performance

In the Nigerian Autonomous Foreign Exchange Market (NAFEM), which serves as the official forex platform, the naira saw a significant depreciation against the US dollar. According to data from FMDQ on Friday, February 23, the naira weakened by approximately 6%, or N94.19, ending the day at N1,665.50/$1. This marked a notable decline from the previous day’s rate of N1,571.31/$1. Analysts attribute this depreciation to a shortfall in the supply of foreign exchange (FX), highlighted by a 20.9% decrease in the value of forex transactions, totaling a drop of $40.32 million to $151.92 million from $192.25 million the day before.

Additionally, against other major currencies like the Pound Sterling and the Euro, the naira closed at N1,880.81/£1 and N1,609.89/€1, respectively, at NAFEM.

Unofficial Market Dynamics

Conversely, the naira showed signs of recovery in the unofficial markets. In the Peer-to-Peer (P2P) market, the naira gained N32 against the dollar, trading at N1,705/$1, an improvement from the rate of N1,737/$1 observed the previous day. Similarly, in the black market, the Nigerian currency appreciated, closing at N1,800/$1 compared to N1,895/$1 in the previous trading session.

A Bureau De Change (BDC) trader in Lagos expressed optimism for the naira’s performance in the upcoming week, citing anticipated policy announcements from the CBN as a potential catalyst for a favorable market reaction.

Comments on New Customs Exchange Rate

Amid these currency fluctuations, Peter Obi, a notable figure, voiced concerns over the latest changes in the customs exchange rate. He warned that these adjustments could potentially harm many businesses, leading to their closure. Obi also offered advice to the government on strategies to support the naira’s recovery against the US dollar, underscoring the need for comprehensive and effective measures to stabilize the Nigerian currency and foster economic resilience.

 

Updated Fuel Prices in Nigeria as of February 27, 2024

Overview of Fuel Prices Across Major Cities

  • Abuja: Current fuel prices are ranging from 670 to 700 Naira per liter, subject to adjustments by the Nigerian government.
  • Lagos: Known as Nigeria’s trade hub, Lagos offers fuel at approximately 670 Naira per liter, varying slightly between stations.
  • Port Harcourt: Fuel prices here fluctuate between 650 and 700 Naira per liter, influenced by global oil prices, exchange rates, and local market dynamics.

General Fuel Pricing Trends in Nigeria

Despite Nigeria’s status as a major oil producer, the lack of refining capacity necessitates substantial imports of refined petroleum. The government’s decision to remove fuel subsidies has led to price volatility, directly influenced by global oil prices, exchange rate fluctuations, and market dynamics.

  • Southern Nigeria: Average fuel price is 635 Naira per liter.
  • Middle Belt: Average fuel price is 655 Naira per liter.
  • Northern Nigeria: Average fuel price is 680 Naira per liter.

 

CBN Moves to Place Annual Limit on Foreign School Fees, Medical Bills Payments from BDCs 

  • The Central Bank of Nigeria has introduced strict measures for annual school and medical fee payments for BDCs
  • The bank places an annual $10,000 limit for school fees and $5,000 for medical bill payments with comprehensive documentation.
  • The apex bank says the measures are part of plans to streamline the activities of the BDCs in Nigeria and strengthen the naira

Guidelines for foreign school fees payment

The guideline states that there will be a limit on foreign currency purchases for school fees at $10,000 per customer annually.

The bank stated that the process requires transactions with Nigerian banks via the BDC’s domiciliary accounts to ensure direct payment to the educational institution.

CBN said:

“BDCs may sell foreign currency up to USD10,000 to a customer for school fees once a year. Such fee shall be transferred from the BDC’s domiciliary account with a Nigerian bank and paid directly to the school.”

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