The Naira, yesterday exchanged for N1,590 to 1 US dollar at the parallel market (black market) in Nigeria, representing the current rate at which individuals are trading dollars for naira outside of official financial institutions.
This marked a marginal weakening of the naira against the dollar from Sunday’s informal foreign exchange market, suggesting slight pressure on the local currency amid ongoing market volatility.
The black market rate represents the value at which individuals can trade their dollars for naira outside official exchange channels, where the currency’s value is largely influenced by supply and demand dynamics rather than central bank regulations.
Note that the Black Market Exchange rate is typically higher than the official exchange rate because it is not controlled by the government and responds more directly to market pressures and investor sentiment.
Yesterday’s exchange rate is slightly worse than that of Sunday, June 22, when the naira exchanged at N1,587 per dollar. (This mild drop may point to increasing dollar demand or shrinking supply in the informal sector.)
The value of a country’s currency is determined by aggregate supply and demand, influenced by factors such as national interest rates, inflation, capital flow, and the overall money supply.
These forces, both internal and external, affect the strength of a nation’s currency and contribute to exchange rate fluctuations. The most common method to assess a currency’s value is through exchange rates. The two main exchange rate systems are the fixed rate and the floating rate systems, with the parallel market rate offering a real-time reflection of currency trends.
Investors and market participants closely monitor parallel market rates for a more immediate and practical reflection of currency trends, often making it a reliable indicator of short-term shifts in economic conditions.
Centre urges FG to impose taxes on unreturned container in ports
The Sea Empowerment and Research Centre (SEREC), has urged the Federal Government to impose taxes on empty unreturned containers especially rickety ones to decongest the ports.
Head Researcher at SEREC, Mr Eugene Nweke, made the call at a news conference yesterday in Abuja.
Nweke said that imposition of taxes or fees on empty unreturned containers was in line with global shipping laws and practices to reduce container dumping enhance safe environment and boost revenue.
“Today shipping companies charge the Nigeria Shippers in the average of ₦10, 000 per day for demurrage after the third period.
“Several countries have implemented taxes or fees on unreturned containers after a specified period.
“Germany, France and the UK have implemented container detention fees or demurrage charges for unreturned containers.
“The United States has a similar system with container shipping lines charging detention fees for containers held beyond the allowed free time.
“Imagine if the government places a demurrage tax on percentage basis, to every unreturned empty container in our ports, how much revenue government will generate from that window alone?
Nweke said that based on research, revenues that could be realised from unreturned container taxes could revive the ports, modernise it and ensure proper maintenance.
He said that without the implementation of these shipping laws, Nigeria would continue to entertain containers littering its ports and with huge financial implications.
Nweke noted that the health and environmental hazards unreturned empty containers pose to the environment were much.
According to him, abandoned containers pose environmental and health hazards, particularly if they are rickety or unseaworthy.
“To mitigate these, it is reasonable for Nigeria to consider implementing these taxes and fees for prompt return of empty containers and reduce the financial burden on shipping lines.
“We have proposed the need for the establishment of a strategic container return system, jointly coordinated or administered by the Nigerian Shippers Council (NSC), Nigeria Port Authority (NPA), among others,” he said.