Can eNaira Influence Exchange Rates (Experts Discuss)

With the eNaira ranking first in the world, app downloads have reached 756,000
With the eNaira ranking first in the world, app downloads have reached 756,000

Despite launch of eNaira, dollar to naira has significantly increased, such that it has made the Nigerian local currency suffer a steady under President Muhammadu Buhari‘s watch.

Brand Spur Nigeria understands that within a period of six years that Buhari rode into power on the promise of making naira stronger as against the dollar, the local currency had lost its value by at least 250%.

However, as the Central Bank of Nigeria (CBN) launched Africa’s first-ever digital currency in Abuja yesterday, there was excitement among the citizenry, as many opined that the newly-floated eNaira would save the naira.

But financial experts and market analysts thought otherwise, as they all shared the same sentiment on the topic.

Can eNaira Influence Exchange Rates (Experts Discuss)

According to them, the eNaira would not change or affect the value of the naira in the foreign exchange market.

The immediate past Director-General of the Lagos Chamber of Commerce and Industry, Dr. Muda Yusuf, said there was no relationship between the foreign exchange market and the eNaira.

He said, “There is no connection between the eNaira and the exchange rate. No relationship at all. The exchange rate is determined by the demand and supply fundamentals in the foreign exchange market.

“These are driven largely by imports, exports, and the flow of capital across borders. The naira, whether digital or physical, is just a means of exchange and to some extent, a store of value.”

He, however, noted that the eNaira was consistent with the current digitalisation trend across all sectors globally.

Yusuf, who is the chief executive officer, Centre for the Promotion of Private Enterprises (CPPE), explained that digital applications typically came with efficiency, cost-effectiveness, smartness in usage, and convenience.

“But it is still not clear what the value proposition of the eNaira is, beyond the psychological satisfaction of joining the league of countries with digital currencies,” Yusuf stated.

The CPPE boss noted that transactions on these platforms were already in trillions of naira, and still counting, adding that it remained to be seen what additional value the eNaira would bring.

He said, “A great deal of sensitisation and awareness need to be undertaken to generate trust and confidence in this new payment system initiative.

“International investors typically would prefer a currency that is acceptable globally and convertible such as the dollar.”

Corroborating Yusuf’s claim, Dr. Olalekan Aworinde, a senior lecturer at the Pan Atlantic University, explained that there was a need to do more sensitise the public more on the risks.

He said, “I think that the CBN should be aware of the fact that there is the risk of cyber attacks with the introduction of the eNaira.

“As a result, the CBN needs to properly educate the masses on how to use the eNaira in a way that would not put their safety and the safety of their funds at risk.

Another expert and the Chief Executive Officer of SD&D Capital Management Limited, Idakolo Gbolade, also said there was the need to sensitive the public more.

Dollar to naira exchange rate for Monday, October 24, 2021

The exchange rate between the Naira and the US dollar according to the data posted on the FMDQ Security Exchange where forex is officially traded showed that the naira opened at ₦…. per dollar on Sunday, 24 October 2021, after it closed at ₦415.07 per $1 on Friday, 22 October 2021. This represents a change of 0.00%.

How much is exchange rate of Dollar to Naira in Black Market today?

The Nigeria parallel market (black market dollar exchange rate today) to the Nigerian Naira is as follows: For the Lagos market (black market).

LAGOS PARALLEL MARKET RATES October 24, 2021 (BLACK MARKET): dollar to naira exchange rate today black market

October 24 dollar to naira black market exchange rate: $1 dollar to naira = ₦573

Lagos parallel market (black market dollar exchange rate today)

The local currency opened at N573.00 per $1 at the parallel market otherwise known as the black market, today, Sunday, 24 October 2021, in Lagos Nigeria after it closed N572.00 per $1 on Saturday, 23 October 2021.

Note: dollar to naira exchange rate has stabilized at N570-575 per $1 since Monday, October 11.

Even though the dollar to naira opened in the parallel market at ₦573 per $1 on Monday, Brand Spur Nigeria reports that the Central Bank of Nigeria (CBN) does not recognise the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.

Brand Spur Nigeria reports that the black market, the players buy a dollar for N568 and sell for N573 on Sunday morning, October 24, 2021 after they bought N568 and sold N573 the previous day.

Meanwhile, Brand Spur Nigeria reports that the USD started this week at ₦572 in Parallel Market also known as Black Market on Monday, October 18, 2021 in Lagos Nigeria. after it opened N575 last week Monday, October 11, 2021.