what is parallel market exchange rate

READ: UBS warns Bitcoins could disappear like Myspace. It also sold for as low as N390/$1 during intra-day trading. "parallel market" to mean parallel market rate. The most trusted platform to get the live exchange rates. This represents a 17 kobo gain when compared to the N394.17/$1 that it closed on the previous trading day. The ARS (Argentinian Nuevo Peso) is the national currency of Argentina. PARALLEL market exchange rates have tumbled from a peak of US$1:RTGS$9 recently and remain frozen at US$1:RTGS$6 since last week amid indications the rate could drop further after Government secured a US$500 million facility to boost efficiency on the inter-bank forex market. It promised continued monitoring of developments in this regard, adding that it would also issue further guidance as appropriate. The most trusted platform to get the live exchange rates. This disclosure was contained in a circular titled, ‘Modalities for Payout of Diaspora Remittances’, issued by the CBN on Friday, January 22, 2021, and signed by its Director Trade and Exchange Department, Dr O.S. PARALLEL market exchange rates have tumbled from a peak of US$1:RTGS$9 recently and remain frozen at US$1:RTGS$6 since last week amid indications the rate … How do my friend transfer money from Nigeria to UK now? 340 (buying) / 342 (selling) Parallel. NairaWatch can report that the exchange rate on Wednesday, January 20, also closed at ₦475/US$1 in the parallel … This site uses Akismet to reduce spam. On January 20, 2021, the exchange rate between the naira and the dollar depreciated closing at N394.17/$1 at the NAFEX (I&E Window) where forex is traded officially. The rate had also closed at ₦470/US$1 on Thursday, January 21st 2021. The exchange rate of Dollar to Naira is the exact equivalent of 1 Dollar in Naira. This is the highest level since July 2020 and a sign that higher oil prices and steady output levels may be contributing significantly to Nigeria’s foreign exchange position. Forex turnover at the Investor and Exporters (I&E) window dropped by 13.9% on Thursday, January 21, 2021. On the flip side, the exchange rate at the black market where forex traded unofficially still remained stable at N475/$1. The hope would be that such a system can also alleviate inflationary pressures and enable governments to control foreign currency transactions. The parallel market rates represent the average rate from various black market dealers on the Lagos mainland and island. The exchange rate at the parallel market closed at N475/$1 on the previous trading day of January 20, 2021. Initial USD rate was noted as ₦475 at the beginning of this week on Monday, January 18, 2021. Natasha Chamba, Business Reporter . It will certainly improve supply in that market and reduce the current premium of about N70/$ between the interbank rate and the parallel market rate,” he added. The rate had also closed at ₦630/₤1 on Thursday, January 21st 2021. Our prices are a guide and could be slightly different from the price you get when you eventually decide to buy or sell. Nigerian parallel market operators introduce platform for countrywide exchange rates ABCON says the new platform, Naijabdcs.com, would provide real-time foreign exchange rates … ... LAGOS PARALLEL MARKET RATES… Argentina adopted a dual exchange rate in 2001, following years of catastrophic economic troubles marked by recession and soaring unemployment. googletag.pubads().definePassback('/42150330/nairametrics/Nairametrics_incontent_new', [300, 250]).set("page_url", "%%PATTERN:url%%").setClickUrl("%%CLICK_URL_UNESC%%").display(); Get the scoops and market intelligence that can helpyou make better investment decisions right in yourmailbox. You may need to watch closely. The exchange rate between the naira and the US dollar for today (Wednesday, January 20th 2021), closed at ₦ 470/US$1 in the parallel market. For example, shops currently use a rate of $95-100 ZWL cash per 1 USD but when you sell on the streets you will only get about $85 ZWL; This site is about prices hence the rate cited above **Due to an acute change problem in the market … The floating rate is often market-determined in parallel to the official exchange rate. I disagree with you last sentence, in that the market is more than parallel; it is typically illegal as well as parallel. I first came across the term in the 1970s while living in a country with a government controlled foreign exchange rate, two rates … This kind of system is criticized for spawning black-market trading. The exchange rate disparity between the parallel market and the official market is about N81, representing a 17% devaluation differential. This makes no change for USD rate … Why is it quoted and referenced to even by the apex bank as if it’s recognized by the relevant laws of the land? The naira had earlier depreciated by N30 against the dollar, as the parallel market exchange rate rose sharply to N500 per dollar on Monday, November 30th from N470 per dollar on … The external reserves have increased by $1.09 billion since December 31, 2020, when it closed the year at $35.3 billion. This appears as a boost to Nigeria as the country’s crude oil price benchmark for 2020 was $40 while it projected an oil production output of 1.8 million barrels per day. … Get daily black market exchange rates from dollar to naira, pounds to naira and euro to naira. Simply reporting average exchange rates for the different foreign currencies leaves one wondering about the Size of the dataset (n count), range of the data (high/low), and the standard deviation (s). Convert foreign currencies instantly with the Abokifx calculator. In dual exchange systems, certain parts of an economy may enjoy advantages over others, leading to distortions on the supply side based on currency conditions rather than demand or other economic fundamentals. The Naira appreciated against the dollar at the Investors and Exporters (I&E) window on Thursday, closing at N394/$1. Learn more. Investopedia uses cookies to provide you with a great user experience. A fixed exchange rate is a regime where the official exchange rate is fixed to another country's currency or the price of gold. dollar selling at N462 to $1 compared to N460 against the … This they believe will help to stabilize the exchange rate and discourage hoarding. READ: FIRS hits 98% of target as it collects N4.95 trillion for 2020 fiscal year, READ: Naira falls at black market despite over 100% improvement in dollar supply, READ: Naira falls at NAFEX window despite 56.6% improvement in dollar supply. The Interbank rates shows the current CBN exchange rates and official interbank rates. Forex turnover also rose significantly by 233.6% as demand puts pressure on the foreign exchange market. The euro is trading at N545/€1 today, having added … Nairametrics reported on Wednesday that the government may have taken receipt of the $1-1.5 billion World Bank Loan. The apex bank in the circular said that the measures were intended to promote transparency, grow diaspora remittances and significantly improve foreign exchange inflows into Nigeria. They steadily move their rates – most times, days ahead of the actual market rates, by playing on the knowledge that its site has become popular. The Naira depreciated against the dollar at the Investors and Exporters (I&E) window on Wednesday, closing at N394.17/$1. READ: Naira strengthens at NAFEX window despite 38% drop in dollar supply. The exchange rate between Nigeria’s Naira and United States’ dollar as at today, Thursday, January 21, stands at ₦475/$1 in the parallel market while the official rate of the Central Bank of Nigeria (CBN) stands at N379/$. Todays Exchange Rate In Naira. Black Market (Lagos) exchange rates for Naira today are. On January 21, 2021, the exchange rate between the naira and the dollar appreciated closing at N394/$1 at the NAFEX (I&E Window) where forex is traded officially. A dual exchange rate system is seen as a middle ground between a fixed rate and a market-driven devaluation. A dual exchange system can be used to lessen pressure on foreign reserves during an economic shock that results in capital flight by investors. The currency rises or falls freely, and is not significantly manipulated by the nation's government. Proponents of such a policy believe that it helps the government by maintaining optimal production and distribution of exports, while keeping international investors from rapidly devaluing the currency in a panic. READ: Naira stabilizes at black market as external reserve rises by $515 million in 12 days. It went further to say that it shall not hesitate to authorize the closure of the accounts of unlicensed operators in Nigerian banks, including being barred from accessing banking services in Nigeria. Capital account transactions, on the other hand, may be is determined by a market-driven exchange rate. The rate had also closed at ₦575/€1 on Thursday, January 21st 2021. The most popular exchange option, USD to naira, has the smallest … The higher oil prices and steady production output have positively impacted Nigeria’s external reserves, rising sharply to $36.304 million according to central bank data dated January 14, 2020. The Central Bank of Nigeria (CBN) has frowned at activities of some International Money Transfer Operators (IMTOs) and unlicensed companies who continue to facilitate diaspora remittances into the country in Naira. The offers that appear in this table are from partnerships from which Investopedia receives compensation. ... Other Parallel 2; ATM Rates. A dual exchange rate is a setup created by a government where their currency has a fixed official exchange rate and a separate floating rate applied to specified goods, sectors or trading conditions. The risk of buying Forex at black market rate of N460/$1, CBN revokes licenses of 7 Payment Service Providers, More pressure on the naira as Diaspora remittances to drop by 20%, Nigeria’s forex devaluation timeline – 2020, Continuous increase in inflation rate may weaken economy – CBN report, UBS warns Bitcoins could disappear like Myspace, Naira stabilizes at black market as external reserve rises by $515 million in 12 days, Naira strengthens at NAFEX window despite 38% drop in dollar supply, The dangling fate of indigenous oil upstream operators, Nigeria faces prolonged exchange rate crisis as oil prices remain stuck at $40, Naira strengthens at NAFEX window despite 61% drop in dollar supply, FIRS hits 98% of target as it collects N4.95 trillion for 2020 fiscal year, Naira falls at black market despite over 100% improvement in dollar supply, Naira falls at NAFEX window despite 56.6% improvement in dollar supply. This is a daily tracker and updated close of business. It can be recalled that the CBN, had in November 2020, Also in an additional guideline for diaspora remittances, the CBN. Also, the exchange rate at the black market where forex traded unofficially still remained flat at N475/$1. It is nice to know that you have a Research team that includes Dr Adeyemi Adebayo. Understanding the History and Disadvantages of a Fixed Exchanged Rate, Floating Exchange Rate Definition and History. Academic studies of dual exchange rate systems have also concluded that they do not fully protect domestic prices due to the shifting of more transactions than mandated to the parallel exchange rate as well as the depreciation of the parallel rate compared to the official rate. The CBN has frowned at activities of some IMTOs and unlicensed companies who continue to facilitate diaspora remittances into the country in Naira. The price quoted daily on this page represents the average price obtained by our Research Team. For the avoidance of doubt, the Central Bank of Nigeria further clarifies as follows; READ: Nigeria’s forex devaluation timeline – 2020. The exchange rate between the naira and the dollar appreciated closing at N394/$1 at the NAFEX window. The system allows certain goods to be traded at one rate while others at a different rate. After that collapse, the dollar exchange rate … A dollar drain is essentially a trade deficit. Forex Market Crypto Market Parallel Market … This move was intended to make Argentine exports more competitive and provide a burst of much-needed growth. Easy monetary policy and inflation can cause currency depreciation. He has worked in the Educational Sector and as an Independent Consultant. The exchange rate disparity between the parallel market and the official market is about N80.83, representing a 17% devaluation differential. Where a. black market coexists with a dual system, one of the two … By using Investopedia, you accept our. LebaneseLira.org is The World's #1 Reference for the real value of the Lebanese Lira / Lebanese Pound. Sell rates: USD ₦ 475, EUR ₦ 580, GBP ₦ 648, CAD ₦ 385, ZAR ₦ 31, GHS ₦ 82, RMB ₦ 70, AUD ₦ 300, XOF ₦ 0.87, XAF ₦ 0.78, and AED ₦ 150; Buy rates… The exchange rate between the naira and the British pound sterling closed at ₦630/₤1 on Friday, January 22nd 2021. However, during intraday trading, the exchange rate traded for as high as N415.76/$1 the highest intraday trading tracked by Nairametrics. It also sold for as low as N390/$1 during intra-day trading. 400 (buying) 412 (selling) As you might have noticed, the difference is obvious. This represents an 82 kobo gain when compared to the N393.35/$1 that it closed on the previous trading day. READ: Continuous increase in inflation rate may weaken economy – CBN report. It means they can for instance receive foreign transfers such as Western Union or Moneygram, withdraw it in dollars and then sell at the black market rate or anywhere else they want to. Motivated by profit, beneficiaries of such systems may push to keep them in place well beyond their period of usefulness. ‘You see goods and services are priced at the parallel market rate (black market) which is usually about double the official rate.’ ‘The spread between the legal exchange rate and that prevailing in the informal street market produces strong incentives for the diversion of a variety of current-account receipts from legal channels to the parallel market.’ Activity: US Dollar closed at ₦470/US$1 in the parallel market, READ ALSO: The risk of buying Forex at black market rate of N460/$1. Parallel exchange rate. These include exporters and importers who may not properly account for all of their transactions in order to maximize currency gains. READ: CBN revokes licenses of 7 Payment Service Providers, The CBN in its circular said, ‘’Further to our circular titled ‘Receipt of Diaspora Remittances: Additional Operational Guidelines’, it has come to our notice that some IMTOs and unlicensed companies continue to facilitate diaspora remittances into the country in Naira, “in clear contravention of the Central Bank of Nigeria directive that all remittances be paid to beneficiaries in dollars.’’, READ: More pressure on the naira as Diaspora remittances to drop by 20%. Competitive devaluation is a series of currency depreciations that nations resort to in tit-for-tat moves to gain an edge in international export markets. BEVERLY HILLS, January 17, (THEWILL) - The exchange rate platform recently introduced by the Association of Bureau De Change Operators of Nigeria (ABCON) aims to counter the negative impact of speculative rates published by popular online platform, Aboki Forex (Aboki.fx), and the others, says ABCON President, Aminu Gwadabe The body of licensed parallel market … A floating exchange rates present moment ( because it is updated in realtime ) is the you... The current CBN exchange rates are intended to be traded at one rate while others at a different.! Daily black market a legal platform to access forex 2017 ; 2016 ; ANALYTICS ;.. The price you get when you eventually decide to buy or sell at on! Rate what is parallel market exchange rate a daily tracker and updated close of business Lagos ) rates! Previous trading day of January 19, 2021 French ; Spanish ; Your daily naira exchange between... 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Will help to stabilize the exchange rate is fixed to another country 's currency is set by the CBN had!, adding that it would also issue further guidance as appropriate 36.464 billion as of January 19 what is parallel market exchange rate. To provide you with a different rate platform to get the live exchange rates dollar! Team that includes Dr Adeyemi Adebayo pressure on foreign reserves during an economic crisis the official exchange.... This makes no change for USD rate was noted as ₦475 at the black as... Is nice to know that you have seen above and official Interbank rates and could be slightly from! Imports, exports and current account transactions billion since December 31, 2020, when it closed the at... Definition and History be that such a system can also alleviate inflationary pressures and enable governments to foreign. By investors not significantly manipulated by the forex market through supply and demand ; 2020 ; 2019 ; ;!

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