…experts call for Banks recapitalization over Naira devaluation
Below are the prevailing Black market (Parallel market) also locally known as ‘Aboki FX’ exchange rates for today Monday 26th June 2023 for the Dollar, Euro, Pounds and other foreign currencies.
Following the new policy of the Central Bank of Nigeria under President Bola Ahmed Tinubu, to float the exchange rate of the Naira against the united states’ dollar and other foreign currencies, IgbereTV will be bringing you updates as observed in the parallel market.
It is important to note that the rates you buy or sell forex may differ from what is captured in this report because prices fluctuate and can change in minutes depending on market forces
Dollar to Naira (USDNGN) Today
Buying N775
Selling N770
Euro to Naira (EURNGN) Today
Buying N 840
Selling N 825
Pounds to Naira (GBPNGN) Today
Buying N990
Selling N975
CAD to Naira (CADNGN) Today
Buying N630
Selling N610
With the current prevailing rate, how much is $5 converted to Naira? N3,850
With the current prevailing rate, how much is $10 converted to Naira? N7,700
Meanwhile, with the current devaluation of the naira against the US dollar and other major global currencies, there is ongoing conversation on the urgency around the need to raise the capital base of commercial banks in Nigeria.
Many financial analysts have argued that the 2004 banking industry recapitalization, which increased banks’ capital base from 2 billion Naira to the current 25 billion Naira, had weakened.
It is important to note that in 2004 when the recapitulation was implemented the USD exchange rate was about N100.
N25 billion in 2004 therefore saw the banks’ capital base climb to average $250 million.
Today, if we convert N25 billion at N750, it is substantially lower to just $33.3 million.
Capital adequacy ratio is one of the important concepts in banking, which measures the amount of a bank’s capital in relation to the amount of its risk weighted credit exposures.
The last monetary policy committee of the CBN held in May, 2023, had noted the sustained stability in the banking system, evidenced by the performance of the Financial Soundness Indicators (FSIs).
It disclosed that the Capital Adequacy Ratio (CAR) of the banking system stood at 12.8 per cent, Non-Performing Loans (NPLs) ratio at 4.4 per cent and Liquidity Ratio (LR) at 45.3 per cent, as of April 2023.
Effort to get the reaction of the CBN was not successful as the spokesman of the apex bank, Dr Abdulmumin Isa, was said to be in a meeting. The essence was to find out whether they are planning to do recapitalization anytime soon, and what do they think about the concerns being expressed about the banks’ capital base after massive naira depreciation from N100/$ in 2004 to N770/$ today.
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