Latest CBN News and Dollar to Naira Update Today 12 September 2023 can be accessed below.
In this comprehensive article, we will explore the latest updates from the Central Bank of Nigeria (CBN) and provide you with the most up-to-date information on the Dollar to Naira exchange rates as of September 12, 2023. We’ll also delve into significant developments in Nigeria’s financial landscape, including the insights and recommendations of prominent figures like Dr. Tunde Lemo. This article will help you stay informed about the ever-changing economic conditions in Nigeria and the implications for currency exchange rates.
Latest CBN News
Dump Exchange Rates Unification, Lemo Tells CBN
Former CBN Deputy Governor Calls for Rethinking Exchange Rate Merger
Dr. Tunde Lemo, a former Deputy Governor of the Central Bank of Nigeria (CBN), has advised the CBN to reconsider its decision to merge the parallel and official exchange rates. He emphasized that the naira should not be treated as an internationally convertible currency and that a gap of not more than N50 should not be a cause for concern for the apex bank.
In a recent paper presented at the Lagos Business School, Dr. Lemo commended the government for its courage in attempting to merge the exchange rates but highlighted that this move had created significant arbitrage opportunities. He cited several factors such as dollar scarcity, oil theft, reserve levels, and capital controls that have contributed to the liquidity challenges in Nigeria’s forex market.
Dr. Lemo also pointed out that some of the government’s monetary policies, particularly low-interest rates, are challenging to implement in a high and rising inflation environment. He attributed the high-interest rates to both monetary and structural reasons and suggested that addressing structural factors is crucial for delivering lower interest rates.
Furthermore, Dr. Lemo called for a reduction in the cost of governance in Nigeria, criticizing the Federal Government for having the largest federal cabinet in 24 years. He welcomed the government’s intention to reduce the size of its delegation to the United Nations General Assembly and urged more significant efforts in this direction.
In summary, Dr. Lemo’s recommendations highlight the complexities of managing Nigeria’s exchange rates and the need for a comprehensive approach to address the country’s economic challenges.
Flutterwave Launches CBN-Backed Swap
Revolutionizing Access to Foreign Currency for Nigerians
Flutterwave, a leading payments technology company in Africa, has made a groundbreaking announcement. In partnership with Wema Bank and Kadavra BDC, Flutterwave has launched “Swap,” a digital platform backed by the Central Bank of Nigeria (CBN). Swap aims to provide secure and reliable access to foreign currency for Nigerians at competitive exchange rates.
This initiative comes at a crucial time when Nigerians and businesses face significant challenges in accessing foreign currencies for international transactions, investments, and cross-border financial activities. These challenges have not only affected personal financial goals but also hindered macroeconomic growth.
Swap is more than just a digital platform; it is designed to ensure that every currency exchange is seamless, secure, and financially rewarding. This approach will grant consumers greater purchasing power and offer businesses substantial investment potential.
Additionally, Flutterwave plans to introduce a convenient card issuance system to Swap users. With a goal to distribute over 10 million of these cards to Nigerians starting from October 2023, this move will provide swift access to Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), facilitating educational pursuits, business endeavors, and diverse travel requirements.
Commenting on the product launch, Olugbenga ‘GB’ Agboola, Founder and CEO of Flutterwave, highlighted the company’s commitment to innovation and simplifying financial processes. He acknowledged the challenges individuals and businesses face regarding forex access and sees Swap as the solution to these pain points.
Cynthia Onyinyechi, CEO of Kadavra BDC, emphasized that Swap simplifies the process of accessing foreign currency, making it as easy as a click of a button.
Morufu Oseni, Managing Director of Wema Bank, expressed the bank’s dedication to digital innovation and the positive impact that a product like Swap will have across all sectors.
In conclusion, Swap is set to revolutionize how Nigerians engage with foreign exchange, addressing critical challenges and providing opportunities for economic growth and personal financial empowerment.
DSS Reportedly Arrests CBN Deputy Gov, Ahmad, Over Alleged Fraud
Deputy Governor of CBN Faces Interrogation on Fraud Allegations
The Department of State Security Service (DSS) has reportedly arrested Aisha Ahmad, the Deputy Governor of the Central Bank of Nigeria (CBN), in connection with an alleged fraudulent acquisition of shares in Polaris Bank and Titan Bank (Union Bank). Although the DSS spokesperson, Peter Afunanya, neither confirmed nor denied Ahmad’s custody, reports suggest that she is being interrogated about how $300 million was raised by Titan Bank for the acquisition of Union Bank in 2022.
Afunanya emphasized that such invitations and interrogations are carried out within the ambit of the law during the course of investigations. This development comes approximately two months after the DSS arrested Godwin Emefiele, the former CBN Governor, who has remained in custody since then.
Dollar to Naira Black Market Rate Today 12 September 2023
Stay Informed About Currency Exchange Rates
In today’s rapidly changing financial landscape, staying updated on currency exchange rates is essential for individuals and businesses. The Dollar to Naira exchange rate is particularly crucial given the economic ties between the United States and Nigeria. As of September 12, 2023, here are the current exchange rates:
Black Market Rates – September 12, 2023
- 1 USD: Buying ₦925 / Selling ₦930
- 2 USD: Buying ₦1850 / Selling ₦1860
- 5 USD: Buying ₦4625 / Selling ₦4650
- 10 USD: Buying ₦9250 / Selling ₦9300
- 15 USD: Buying ₦13875 / Selling ₦13950
CBN Official Rates – September 12, 2023
- 1 USD: Buying ₦753.862 / Selling ₦754.862
- 2 USD: Buying ₦1507.724 / Selling ₦1509.724
- 5 USD: Buying ₦3769.31 / Selling ₦3774.31
- 10 USD: Buying ₦7538.62 / Selling ₦7548.62
- 15 USD: Buying ₦11307.93 / Selling ₦11322.93
Understanding the factors that contribute to exchange rate fluctuations, such as economic conditions, political stability, and market sentiment, is essential for making informed financial decisions.
Managing Currency Exchange Risk
For businesses engaged in international trade, effectively managing currency exchange risk is crucial. Hedging strategies, including forward contracts and options, can help mitigate the impact of adverse rate movements.
In conclusion, the exchange rate landscape in Nigeria is dynamic and influenced by various factors. Staying informed about the latest rates and understanding the underlying economic conditions is vital for individuals and businesses alike. The developments discussed in this article provide insights into the current financial landscape in Nigeria and its implications for currency exchange rates.
- What is the significance of merging parallel and official exchange rates?
Merging parallel and official exchange rates can simplify currency exchange processes and reduce arbitrage opportunities. It aims to create a unified and transparent exchange rate system.
- How do monetary policies affect interest rates in Nigeria?
Monetary policies, especially in a high inflation environment, can impact interest rates. Lowering interest rates is desirable, but it can be challenging to achieve without addressing inflation and structural factors.
- What are the potential consequences of having a large federal cabinet in Nigeria?
A large federal cabinet can increase the cost of governance and bureaucracy. It may lead to inefficiencies and reduced government effectiveness.
- Why is political stability important for exchange rates?
Political stability can influence investor confidence and perceptions of risk. Stable political conditions often lead to more predictable exchange rates.
- How can individuals and businesses access Flutterwave’s Swap platform?
Existing users of Flutterwave for Business and Send App can access Swap with one click. Additionally, Swap will be available via API for banks and to newly registered users on the platform.