The foreign exchange market in Nigeria remains in red as there are different rates Wednesday, May 11, 2022, across the board. In this update, InfomediaNG monitored the rates on the CBN website, P2P marketplace, and black market.
EUR sold for NGN438.7007 (selling) and NGN436.5907/EUR (buy) on the official forex website of the Central Bank of Nigeria (CBN). To hundreds of Nigerian forex users, the CBN rate is the most deceitful one. Some analysts believe that the apex bank is manipulative about forex.
The CBN rate can’t be used to judge what the price would be like at the commercial banks. The CBN sells forex directly to the banks since it ended sales of forex to more than 5,000 Bureau De Change operators in Nigeria in 2021.
EUR to Naira Black Market Rate.
Up till now, millions of Nigerians address BDC operators as forex black marketers, but most of them detest the tag, “black market” since there is no huge margin between sell and buy in their FX sales. The maximum is usually between NGN10 and NGN15
Whether they like it or not, they remain lifesavers to hundreds of Nigerians who need FX for international transactions and settlements.
For instance, paying foreign school fees, and paying medical bills abroad among other needs are easier on the black market, but more expensive.
At the time of this publication 1 Euro is worth NGN622 (sell) and NGN615 (buy) at the black market in Lagos, Nigeria’s commercial city. There could be a slight difference from other states across the country.
There are more demands for forex in Lagos than in any other state in Nigeria, thanks to one of the busiest international airports in the city, Murtala Muhammed International Airport, Ikeja.
Bank transfer rate
As earlier pointed out in one of our articles, the channel of funds determines the rate in Nigeria. One such channel that is becoming popular among forex traders is the inflow or bank transfer method.
Inflow occurs when a seller transfers from one bank to the buyer who uses the same bank as the seller.
On Wednesday, May 11, 2022, EUR/NGN is NGN638 (sell) and NGN630 (buy). The inflow rate also depends on the seller’s negotiation capability. The rate is dynamic due to location and the amount of EUR you have for sale.
EUR to NGN P2P rate
On the popular cryptocurrency, Peer-to-Peer trading platform like Binance, EUR to Naira is NGN637.36 (sell) and NGN635.98 (buy)
The P2P rate became popular in Nigeria after the CBN governor restricted banks from funding crypto-related transactions in 2021.
It’s germane to abide by the security safety tips on crypto platforms, especially P2P. There are scammers who lurk to prey on amateur traders.
When will Naira gain against the Euro?
If Nigeria doesn’t build its infrastructure, massively invest in security, empower SMEs, invest in education and support farmers and other stakeholders in the production chain, Nigeria’s legal tender is not going to gain against Euro or other foreign currencies.
Huge debt by Muhammadu Buhari’s administration. How would the naira have value when more than 90% of Nigeria’s revenue is used to service the debt?