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☆ Nigeria naira hits record low near unofficial market rate
▼ + stars: | 2023-12-01 | by ( ) www.reuters.com time to read: 1 min

ABUJA, Dec 1 (Reuters) - Nigeria's naira dropped to a record low against the dollar on Friday on the official market, close to the rate at which it trades on the unofficial parallel market. The currency of Africa's biggest economy fell as low as 1,160 naira to the dollar, LSEG data showed, before recovering to around 800 naira. The naira's official exchange rate has been drifting towards the parallel market level as the central bank is yet to clear outstanding foreign-currency amounts owed in forward deals. Last week, central bank Governor Olayemi Cardoso said he would allow market forces to determine exchange rates while setting clear, transparent and harmonised rules governing market operations. The currency sold at around 1,165 naira on the parallel market on Friday.

Persons: naira, Olayemi Cardoso, Chijioke Ohuocha, Alex Richardson Organizations: Thomson Locations: ABUJA

☆ Nigeria's naira firms on black market, central bank settles FX forwards
▼ + stars: | 2023-11-06 | by ( ) www.reuters.com time to read: +2 min

The naira has hit successive record lows on the black market, where it trades freely, as excess demand on the official market gets funnelled to the unofficial market. The naira crossed the 1,000 naira mark on the black market on Sept. 26, the day newly-appointed central bank governor Olayemi Cardoso appeared before the Nigerian senate for his confirmation hearing. The central bank has not intervened on the official market since October, helping accelerate the naira's slide on the black market. The currency hit a record low of 1,300 naira per dollar on the black market, a month after it crossed the 1,000 naira mark, amid thin trading volumes on the parallel market and dollar shortages on the official market. On the official market, the naira was trading at 884.53 to the dollar at 1200 GMT.

Persons: Afolabi, firmed, Olayemi Cardoso, Cardoso, Wale Edun, Chijioke, Mark Potter Organizations: REUTERS, Rights, Finance, Thomson Locations: Rights ABUJA, Nigeria

☆ Explainer: What is pushing the Nigerian naira to record lows?
▼ + stars: | 2023-10-27 | by ( Chijioke Ohuocha | ) www.reuters.com time to read: +4 min

Investors cheered when Tinubu lifted the currency controls, hoping a unified exchange rate would make it easier to access foreign currency, but that is yet to happen. Banks then repaid foreign credit lines with their own funds when the central bank did not pay out. New central bank governor Yemi Cardoso said clearing the backlog was a priority but he gave no timeline for how long it would take. The country's forex reserves fell to $33.5 billion in September from $37 billion in January, central bank data shows. Banks use their open net positions on foreign currency to finance short-term trade lines without resorting to the central bank for bidding.

Persons: Bola Tinubu, Tinubu, corporates, Banks, Yemi Cardoso, Chijioke Ohuocha, MacDonald Dzirutwe, Hugh Lawson Organizations: JPMorgan, FX, National Economic Council, BANK, Thomson Locations: ABUJA, Nigeria

☆ Nigerian naira hits record black market low -abokiFx
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +1 min

ABUJA, Oct 26 (Reuters) - Nigeria's naira hit a record low of 1,300 per dollar on the black market on Thursday, online platform abokiFX showed, driven by thin trading volumes on the parallel market and dollar shortages on the official market. The naira has been in free fall on the unofficial market, where it trades freely, after currency restrictions were lifted on the official market. Last month, the currency slid past 1,000 naira per dollar on the black market and has continued to weaken. On the official market, the naira recovered to 775 to the dollar from a record low of 999 it touched last week. It kept losing ground, however, on the black market due to thin trading.

Persons: naira, Yemi Cardoso, Wale Edun, Chijioke, Tomasz Janowski Organizations: Finance, Thomson Locations: ABUJA, Nigeria

Meanwhile, the black market for smuggled subsidised Nigerian fuel in Togo and neighbouring Benin and Cameroon has collapsed, further reducing demand for shipments via Nigeria. Average monthly West African (WAF) gasoline imports fell by 56% in the second quarter compared with the first, according to Refinitiv Eikon data. "The key point is demand from West Africa is drying up," said Refinitiv Lead Oil Analyst Raj Rajendran. There may simply be a baseline decrease in demand," said Sparta Commodities gasoline market analyst Philip Jones-Lux. The challenge is coming from the new refineries in the Middle East that are expanding from their traditional East Africa market to now include West Africa and beyond even to the Americas," Rajendran said.

Persons: Bola Tinubu, Jeremy Parker, Raj, naira, Philip Jones, Jones, Lux, Rajendran, Shadia, Barbara Lewis Organizations: Nigeria's, West, ARA, Reuters Graphics, Sparta Commodities, Thomson Locations: Africa, Nigeria, North America, West Africa, Europe, United States, Asia, Ukraine, Togo, Benin, Cameroon, Amsterdam, Rotterdam, Antwerp, Sparta, Mideast, Russia, European, East Africa

ABUJA, July 20 (Reuters) - Nigeria's naira traded at a record low of 860 per dollar on the black market on Thursday, according to traders, weakening below its official rate a month after the country devalued the currency and ahead of a central bank policy meeting next week. The naira has been swinging widely on the official market since the devaluation. It touched a new low of 853 naira per dollar on Wednesday, according to OTC market regulator, FMDQ Exchange. The currency closed at 742 naira against the dollar on the official market on Thursday, Refinitiv data showed. Dollar shortages on the official market have seen customers turning to the black market, helping to widen the gap between the spot rate and the black market, one trader said.

Persons: Nigeria's naira, Bola Tinubu, Elisha Bala, Andrew Cawthorne, John Stonestreet, Tomasz Janowski Organizations: FMDQ Exchange, Thomson Locations: ABUJA, Nigeria

☆ Kenyan, Zambian currencies expected to weaken
▼ + stars: | 2023-07-06 | by ( ) www.reuters.com time to read: +4 min

[1/2] Kenya Central Bank Governor Patrick Njoroge displays Kenyan shilling bank notes during a news conference at the Central Bank in Nairobi, Kenya, June 3, 2019. One trader at a commercial bank said the currency was expected to float around 141.00 levels. GHANAGhana's cedi is expected to hold steady against the dollar next week on the back of high foreign exchange liquidity following central bank support, traders said. Bid-offer spreads are also expected to tighten further," said Sedem Dornoo, a senior trader at Absa Bank Ghana. UGANDAThe Ugandan shilling is expected to firm in the coming week, drawing support from hard currency inflows from exporters of commodities such as coffee.

Persons: Kenya Central Bank Governor Patrick Njoroge, Baz Ratner, GHANA Ghana's cedi, Sedem Dornoo, Chris Nettey, ZAMBIA Zambia's kwacha, Elias Biryabarema, Chris Mfula, Bhargav Acharya, Elisha Bala, Hereward Organizations: Kenya Central Bank Governor, Central Bank, REUTERS, KENYA, GHANA Ghana's, greenback, Absa Bank, Trading Stanbic Bank, ZAMBIA Zambia's, Access Bank, Bank, Thomson Locations: Nairobi, Kenya, JOHANNESBURG, Ghana, Nigeria, NIGERIA, GHANA, Absa Bank Ghana, Trading Stanbic Bank Ghana, UGANDA, Kampala, ZAMBIA

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