1/19/2024 0 Comments Royal canadian bank exchange ratesNigeria allowed its currency to weaken 40% against the dollar in June. The nation will also ensure market forces determine exchange rates on a willing-buyer and willing-seller basis, it said. The central blank plans to clear a foreign-currency backlog on the official market and increase dollar supply “gradually” to boost liquidity and ensure price stability, the central bank said, adding that it’s committed to the attainment of a single foreign exchange market. “To reduce foreign exchange shortages in the official market, the central bank might also need to signal that commercial banks can offer a weaker naira rate for dollar.” It could also consider higher interest rates to mop up naira liquidity, he said. Removal of the import restrictions “should reduce pressure on the naira in the parallel market” and help curb inflation, Charlie Robertson, head of macro strategy at FIM Partners, said by email. That’s 27% weaker than the official rate of 759.20 a dollar on the FMDQ OTC trading platform. The naira’s parallel-market rate weakened to 1,045 per dollar on Thursday from 1,030 the previous day, according to Abubakar Mohammed, chief executive officer of Forward Marketing Bureau de Change Ltd., which compiles data on the informal market in Lagos. That continued after the nation allowed naira to trade more freely in June as part of reforms to help attract more foreign investment and boost the economy. Since there was no ban on the importation of the items, dealers moved the demand to the parallel market, where the naira trades at a weaker rate than the official one. The intention was to encourage local production, conserve dollars for essential imports and help stabilize the foreign exchange market. The central bank of Africa’s biggest economy in 2015 published a list of goods including rice, vegetables and poultry products for which importers couldn’t access dollars at the official exchange rate. “The CBN will boost liquidity in the Nigerian foreign exchange market by interventions from time to time.” The importers of all the previously restricted items “are now allowed to purchase foreign exchange in the Nigerian foreign exchange market,” the Abuja-based Central Bank of Nigeria said in statement on its website on Thursday. In the end, that means the exchange rate you see on the news/web is not what you get in reality.(Bloomberg) - Nigeria’s central bank lifted a ban on the purchase of dollars on the official market to import 43 specified items after the measure diverted demand to the unauthorized market, fueling a rout in the local currency. Credit card will charge fees for charges in foreign currencies, same for getting cash from an ATM. Then most banks will charge some kind of fee - sometimes the fee is bundled into the rate, other times it's a flat fee or extra fee added to the transaction. The base exchange rate is usually set based on the 'central bank' rate, but each bank (or exchange bureau) can set their own exact rate. The exact US to CAN $ rate you get will vary depending on the bank. Exchanging cash here tends not to be a good option. What is best will really depend on your particular situation, but ATM and credit card usually are no worse or better than any other option. And see what kind of fees your bank charges for using ATMs/credit cards. Check to see if your bank has a Canadian partner - some have a partnership with a Canadian bank and will waive ATM fees at the ATMs belonging to that bank. Best bet is generally to get Canadian $$ from an ATM here and/or use your credit card.
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