Pound, euro exchange rates archive for Feb 24 – March 2, 2017

These are the Black market exchange rates of the pound, euro to the Nigerian Naira.

Visit black market dollar naira exchange rates to get the latest and current exchange rates of the dollar to naira in the Nigeria black market.

Pound Sterling Exchange Rate – GBP Rate to Nigeria Naira Exchange Rate – NGN rate in black market:

Date: (Gbp/Ngn) BUY / SELL
02/03/2017: 530/ 550
01/03/2017: 525/ 540
28/02/2017: 520/ 536
27/02/2017: 525/ 556
24/02/2017: 540/ 575

Euro Exchange Rate – EUR Rate to Nigeria Naira Exchange Rate – NGN rate in black market:

(Eur/Ngn) BUY / SELL
02/03/2017: 440/ 460
01/03/2017: 430/ 450
28/02/2017: 440/ 460
27/02/2017: 440/ 460

The Nigerian naira is the currency of Nigeria. The Central Bank of Nigeria (CBN) is the sole issuer of legal tender money throughout the Federation. In 1973, the naira was replaced by the pound at a rate of 2 naira = 1 pound.

The Nigeria Naira opened and traded flat at the beginning of 2017, but it is still expected to decline steadily.

The story you will continue to hear with regard to the reason behind the constant depreciation of the Naira is the lack of Forex liquidity in the market.

The obvious pattern in the Nigeria Black Market is thus: lack of liquidity causes the naira to lose value at an exponential rate while stability leads to price stagnation.

The usual Nigeria factor appears to have a play here as well. In an unfavourable market condition, prices of commodities escalate; and often remain as such even when the market becomes favourable.

At the moment, bureaux de change operators in Lagos are receiving $8,000 each from Travelex every week.

This development ought to improve dollar liquidity in the market to have positive impact on the value of the naira,” the President, Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, told Reuters in October, 2016.

In december 2016, Aminu Gwadabe urged CBN to raise weekly dollar sales to bureau de change from $8,000 to $15,000 to check the fall of the naira against the dollar.

What happens when the CBN meets the demands of the BDCs? Will it have an affect on the value of the Naira? Will it cause the Naira to appreciate?

From the trading pattern of the naira in the past 12 months, liquidity boast has never led to its appreciation.

However, lack of liquidity has constantly led to naira depreciation in the black market.

Meanwhile, the Central Bank of Nigeria (CBN) on Monday February 20, 2017 introduced another Foreign Exchange Policy in the country, which mandates banks to open sales point at major airports across the country, in a bid to halt forex scarcity for travellers.

“In order to further ease the burden of travellers and ensure that transactions are settled at much more competitive exchange rates, the CBN hereby directs all banks to open FX retail outlets at major airports as soon as logistics permit,” CBN said.

The CBN, in its guidelines for the new policy, revealed that every Nigerian, 18 years or older, can access $16,000 per year for personal travels, and $15,000 per term for school fees.

About 24 hours after the CBN unveiled the policy, the bank went on to inject $370.9 million into the interbank foreign exchange market.

This new policy will help shore up the naira, an official of the bank said.

“The whole essence of the new policy is to infuse dollar liquidity into the system and to ensure easy accessibility of end users.

“In the past we have had clamours that people were not able to pay their school fees, people were not able to buy BTA and that is why they had to go to the black market or parallel market.

“Now that the CBN have come up with a policy that has returned this into the confines of the inter-bank market and that of the bank, we believe strongly that this will take the demand off the parallel market and we expect that the Naira will strengthen as this goes on.

“In essence, it means that people who have children overseas and those who have to pay school fees or want to travel don’t have to bother rush to BDCs to be buying money or to go parallel market.

“They can now source this easily from the banks and that for me, is a very big positive.’’

“The issue of tax clearance, we all know that it has been an issue because not many people can produce their tax clearance and for those who can, some can also easily produce fake tax clearance and the process of verifying this is very difficult.

“So the central bank has waved the issue of tax clearance provision in accessing these funds and all you need to do is basically your journey must originate from Nigeria, travelling out.

“You cannot leave overseas and buy BTA to travel. You must have a valid ticket to travel with and as a matter of fact you must have a bank account and BVN to recognise you as a bank account holder.

“Basically you are entitled to basic travelling allowance every quarter and up to the sum of 4,000 dollars. And mind you, there is a caveat as it’s only those that are 18 years and above that can access that.

“There is also a condition that you must be embarking on a journey that is not less than five hours. So it does not mean that when you are going to Cotonou or Ghana you come and apply for a BTA.

He reiterated that to avoid round tripping, the policy allows for school fees and medical fees to only be paid directly to the school or hospital.

Ukeje gave assurance that banks will comply with the new directive and not make it difficult, thereby sending customers back to the black market.

“I think the banks will do that because in the past the problem they had with the BDCc was certifying that these BDCs can be dealt with. And most of them, the banks were scared because they were not sure of the ownership of the BDCs.

“That was why some of them retained but now they have to do it directly. And don’t forget that the banks are directly under the supervision of the CBN.

“As a matter of fact, as I speak to you today the fund that was given to them yesterday, they are supposed to render returns today with regards to utilisation by the close of business today.

“So 24 hours after they get that money, they are supposed to render returns on utilisation and there is no way they are not going to comply.

“So we are very positive that banks being under the supervision of the CBN have no choice with this directive,” he said.

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