REVEALED: ₦820 Naira to $1 Dollar? Exchange Rate Policy Explained!

On Wednesday, the 14th of June 2023, Nigeria called to unify exchange rates. Nigeria had an official rate, a parallel or black-market rate and the investors and exporters (I&E Window) among other exchange rates. In this video, I aim to explain the new exchange rate policy adopted by Nigeria and what it means for you. #FinanceFriday #ExchangeRate
CHAPTERS:
0:00 - Introduction
0:37 - What is an Exchange Rate
1:09 - Floating and Fixed Rate
2:27 - What is the Purpose of Naira Unification
5:11 - What are the Changes Made?
7:45 - What is the Impact of this Policy?
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[@FisayoFosudo]

Do you think the exchange rate policy makes sense after watching this video? Reply below 👇🏾 Let’s chat!

[@smallqwaro]

as long as it helps the country move forwards and upwards which by the looks of it is possible then sure.

[@mbajonova5820]

But why didn't the exchange rate merge go down. Why did they adopt the rate towards what's the parallel rate. They should have unified it and maintained the previous CBN rate. Or even meet at the middle at say 500usd. Why go north of 750usd. Still punishment to the poor masses

[@bellomuhammadorigamawa3693]

Of course yes

[@belloyakubu4551]

As long as it helps the country grow

[@idkcoder]

yes already knew this but happy now that people get it better

[@divinelovesam9016]

Same story as always. We’re always doing well in the news but suffering in reality. Our woes will continue until we move from being a consumption country to a producing one.

[@alabipeter4275]

😮 true

[@Mzlizzy]

Fact

[@mikolowiskamikolowiska4993]

I think it's coming Electricity has been privatized

[@devinetaemidgett4647]

Agreed !! Create don’t consume

[@SheriffNetwork]

Very insightful. Thank you Fisayo

[@jonesh6204]

I think it will have a positive effect if our petroleum refineries start working again and we start selling to other African countries accepting only naira as means of payment, driving the demand for naira and strengthening it against the dollar. If we do it right, we may even fall back to 460/$ in no time. But external forces at play might fight against it. But time will tell. Or what do you think?

[@Bobcoolyoung]

I think so too. People snare at this development. Though I don't know why. I like this new development. The future of finance and global economy participation is looking good.

[@phlintify]

Theoretically, yes! But you know how our country is ... artificial and inadvertent constraints by the FGN will soon recreate an obscene arbitrage margin

[@yungdkay1008]

Cabals will never allow it, they rather burn down the country than prosper it

[@ebhole]

@@Bobcoolyoung I think there will never be any positive change until corruption itself is fixed. There needs to be a death penalty for corruption, as only something as radical as that would discourage it. We still have ONLY ONE Refinery, so MONOPOLY. That parallel market will still take their prices UP until there is sufficient FOREX Reserves to Serve the Public in Banks. Revenue from the elimination of Subsidy would simply be embezzled because Of course we have no solid institutions in place to put corruption in check. This is the reality we face. The Future does not and cannot look Good until it is actually God.

[@favourjolayemi]

100%

[@ugommaokorie1660]

Just came across your channel for the first time. This was a really informative video. Thanks so much!

[@WasplightTV]

Thank you Fisayo for doing all the research and breaking it for One to understand... ❤

[@dannymoore9453]

This is outrageous! It's incomprehensible why there isn't more outcry for reform. This is the worst corruption I've ever witnessed.

[@B_uchi]

Really insightful Fisayo, thanks.

[@pluto-hx1iu]

Thanks to you Fisayo. You are always very educating.

[@versachLTE]

One thing I really appreciate is the details and rich informations ... great job bro 👏

[@TyeGrant19]

These policies are killing local businesses in the country. High dollar rate, determined my the market force isn’t healthy. When will it ever become lower??

[@geenonar]

1.when Nigeria/Nigerians are very honestly intentional about who their leader is not just lip service 2. Production, as a country we produce/export practically nothing. That needs to change hugely and immediately. 3. Policies: make policies that have direct positive impact on the economy eg: lower taxes, establish very good infrastructures ( Nigeria has literally no power supply) and attract foreign investment.

[@Bob_Ugee]

For the first time, i have seen video that clearly explained this topic

[@wakabi2191]

Finally! And it's a finance video! Omo God bless you abeg

[@Ummfadhlullah]

Providus naira card works well and even in the USA to withdraw dollars.

[@atorresaful]

Very insight video Fisayo... It will be great to get additional insight about what the exchange rates forecats after this significant changes

[@ekiti]

Nice one, Fisayo. Appreciate

[@priscaisimoya]

Thank you for breaking it down like this

[@KingLiebe_Gaming]

I of the reason i just kove this channel is the simple but attention grabbing video editing, just like mr who is the boss. Would really be using this styles in my clients videos. Love them. And i have been wsiting for this. 🔥🔥🔥🔥🔥

[@MiDaY_i]

Been Waiting for this!!!!

[@Penstroak]

I've been expecting this video Fisayo.

[@FisayoFosudo]

Awesome! Hope you found it useful?

[@goummoprivat]

@@FisayoFosudoyeah. As a Cameroonian, you helped me understand what is going on.

[@cokerjessy3498]

Interesting video, floating the market was not a bad idea, but Nigeria has to produce and exporting more and imported less to drop the dollar

[@rotimikayode1072]

This is the first step to inspire confidence in both local and foreign investors.

[@restessence1]

Found you on Threads and I'm absolutely stuck to your page. You really are HIM!!!

[@paulodili751]

Let's be clear about one thing: as long as we continue to pursue a neoliberal economic ideas promoted and enunciated by IMF and World Bank, that limits government in the commanding heights of the economy, the exchange rate will continue to fluctuate and depreciate. To get the fair value of naira, reduce poverty and create employment, Nigeria led by its government must pursue industrialisation. Anything else is a waste of time.

[@prince_mohaaa]

Great video..learned alot here👍🏽

[@olamidealiyu4504]

This is very enlightening!

[@DeepmindNG]

Yes it really makes sense and you cleared all my doubts thank you so much

[@dolaadeboye3110]

Insightful video, intelligent work. Well done

[@RandomMZ1412]

God bless you. Spread the knowledge. Hopefully the 500K subscribers you have and others will spread it as well. It’s confusing to comprehend the mindlessness and lack of vision of our leaders

[@kobitolifestyle]

I absolutely enjoyed the video, Nice setup btw 👍

[@MichaelSpyder]

Thank you Fisayo

[@nwakubastan]

Thanks for this explanations Fisayo.

[@FisayoFosudo]

You’re welcome!

[@mobolajiakinola3]

nice analysis @FF

[@piuschukwu8838]

Thanks for the enlightenment 👏

[@fitnessalways3752]

Walahi you are Nigeria Andre jikh ❤❤❤❤😎😎

[@smallqwaro]

Finally, it's been ages!

[@wiselevis1456]

You have done well sir. Perfectly understood

[@FisayoFosudo]

Awesome!

[@chidiosuji7519]

Your video was very helpful cos i never saw how that spread affected foreign investors. Thanks alot

[@FisayoFosudo]

Glad it was helpful!

[@toriolabasit3679]

Great video!

[@prayertukorogha]

Goodday sir, I’ll really love if you do a video on the fuel subsidy and how subsidy works. And also your speculations of how these new policies would affect the exchange rate.

[@henryodiachi5997]

is as simple as ABC with basic knowledge of economics of demand and supply. if we have two ngr refineries 2mbpd pumping fuel to nigerians daily the price will crash big time. When you have more suppliers of fuel the price will reduce gradually, so more marketers are needed now to import fuel. NIGERIA MUST BUILD REFINERIES AND BUILD ELECTRIC POWER FOR EXPORT EARNINGS TO RISE

[@Redemption5511]

Good job, all that is left to be resolved right now is security. Without proper security, no foreign investor will be willing to invest in Nigeria.

[@dennishabm8775]

Thank you for this

[@PersonalFinanceProdigy]

While the idea of unification is positive, the unfortunate reality is that the timing is unfavorable. It is clear to anyone in their right mind that implementing a floating rate without building up reserves is unwise. How will the Central Bank of Nigeria be able to intervene in the market if things do not go as planned? Additionally, adopting a floating rate without achieving a significant level of exports in comparison to imports is questionable. Do you believe that international investors make decisions solely based on currency? Sooner or later, we will see the consequences of these actions.

[@intelligentleader123]

Fisayo, you will be a good economics teacher O.

[@darkev]

I like what you do. You inspire me I would like to start something like this or work in a team like this and offer my services for free.

[@CirphrankGG]

Thank you!

[@princewillabbey5796]

very insightful

[@zayworldtech]

Great video ❤️

[@doxologist]

Solid explanation

[@Phatkuz18]

Pple need to watch this video to understand why the currency unification was very necessary!!!!! God bless u Fisayo!!!! I wish the media houses can jst simplify this so pple can understand why the action was taken🙏🏾🙏🏾🙏🏾🙏🏾🙏🏾🙏🏾

[@Zeal___]

Thansk for thr knowledge

[@ayobamiokla]

Informative.

[@joshuaomatsuli]

Fisayo is a gamer, love that PlayStation button sign in background

[@otikoman]

It is a distraction in his video. He should remove it. Not nice.

[@esiritoneh2]

Good one

[@felixonodu9685]

Excellent!

[@Masked.man1.]

Nice video

[@knowlytech9706]

Really helpful

[@bolarinwadavid4833]

You are too good!

[@nafisatwuraola4292]

Thank you so much

[@israeljeshurun]

I don't know if it is my sight as I am shortsighted but the background when you are showing data is distracting. It makes it difficult to focus on the data except one pauses the video. Great work as always

[@Uk.Cinema]

Wow very educative and useful video

[@FisayoFosudo]

Glad you liked it

[@peterfosu4159]

Nice one

[@praiseojo3711]

Thank you 🙏

[@ademolaakinola8750]

and some people argue that this is the perfect policy but implemented way too soon and without any form of cushion or way of support for those who would feel the most impact.

[@9balls.]

Black market nearly injured me with their high rates mogbe, on God

[@dfwkarma]

Finance Friday is back

[@ogunjinmiolatunji7187]

Yes I think the foreign policy really make sense. It will start reflecting once investors are making good use of it in the country. So I think the government should continue to monitor making attractive deals for them.

[@thespeakingpen]

Well analysed. The unification was smart move. It can help Nigeria attract foreign investment again.

[@chidiosuji7519]

@Fisayo are you based Nigeria bcos i am wondering how you keep up with information/Nigeria updates

[@alabukunolubusola2375]

#FodaAdu 😃 You're doing well guy!

[@olatunjiajilore5345]

Quoting a "15yr high in foriegn investment after the new announcements" is akin to counting your chickens before they are laid.. or being frivolously optimistic.. simply because the time frame within which you have benchmarked "an increase" is absolutely nothing compared to the timeframe of the past arrangement. Pointing to immediate and negligible "immediate" emotional reactions to policy changes usually amounts to nothing other than lip service at the end.

[@Drounz]

i love this video! but I was expecting you would explain to us in very very simple terms what this mean, so when you mentioned the Oder book, I was like ehn he is about to give us some real live analogy, like also in the part where you mentioned willing buyer willing seller at the I&E window, aswr i got lost cus you used the same exact word again when trying to explain it. but it was a great video maybe some local analogies would have helped greatly

[@ozonelayer8040]

When you trade the forex market, you will be familiar with those terms

[@hammedagboola685]

Thanks anyway ❤

[@godsbattle]

As a KZbinr who always goes to the bank to get physical dollar and find FX traders to sell to at a good rate, this will change the whole transaction scheme, making it easier and more trustworthy to exchange foreign currency in Nigeria, thanks for this video. Also I wanted to ask, what bank do you just to receive your payments from adsense. Thank you!

[@biblequiz852]

I use gtbank because they didn't require me depositing dollars in the account I unt to open it.

[@TheSunnySlimEffect]

I like GTB🎉 though u can use any bank

[@codered_dev]

fisayo can you cover the sudden growth in naira plsssss

[@chukwuebukastanley9459]

Nigeria my country

[@josephjoshuamayowa1825]

May God Help us

[@FIREcrochethairstyles]

Very interesting video.

[@FisayoFosudo]

Glad you think so!

[@osayomoreogbemudia]

Excellent research conducted here, but let's clarify a few points. In the case of investors, if they invest a specific amount of money and use the outdated CBN rate to purchase Naira, subsequently earning a profit and converting both the initial investment and the profit using parallel rates, they won't incur a loss. It's important to note that the old parallel rate is higher than the CBN rate. The potential loss only arises if they convert their funds back to dollars using the CBN buying rate, as they would be repurchasing their dollars from CBN at that time. Thank you.

[@Tirelesswarrior]

There's still a technical loss for the erstwhile foreign direct investors that wish to repatriate profit or dividends. If the capital importation was documented at 420n and they have to repatriate at 700n, for example, there's a chunky loss. I don't know how CBN intends to deal with that. For fresh investments post policy, it is easier since it's market driven rates for import and repatriation.

[@obadan99]

Same sh*t different toilet. As long as the demand for dollar exceeds supply, the exchange rate will always be high!

[@piegangxbankroll8970]

Baba blueeee 🔥🔥🔥🔥

[@okinkabir]

It is very hard for ordinary Nigerians to understand because they are not used to this kind of economy whether in Nigeria or Africa as a whole. Had it been that we export or produce most of our needs, then we might have an easy sailing or transition but it is going to take a while. it is the right step though and it has to be monitor to be successful.

[@tobiotusemade9052]

God bless you for this video...fr

[@FisayoFosudo]

🙏🏾🙏🏾

[@david_ogbonna]

Best video on the topic

[@FisayoFosudo]

Thank you for watching 🙌🏾

[@iyenrowoemene3169]

Fixed exchange rate is just the same thing as paying subsidy on the Naira. It's like spending to defend a lie. The market rate is the truth rate or value of a currency. It's better to live in truth not lie.

[@prinka2096]

The truth is, 1 Dollar is actually 1 Naira, if you understand that fiat currencies have no value whatsoever. If you use other people's systems of course they will tell you that 1 Dollar = 700 Naira. Because they will always make themselves richer. Build your own systems

[@Deonlyseyi]

@FisayoFosudo Please explain why crypto exchanges price still varies from the I&E price even after the unification

[@pelumi5]

First like and first comment🙂

[@Savevideos-ug4oi]

I have a question for you fisayo, can I now change dollars at the bank at the Google rate?

[@kenechukwunwobu3530]

How does an individual access the I and E windw

[@mkfresh4828]

can you please do a video on credit score?

[@restessence1]

Now I understand the #FodaAdu thingy😌

[@moneywave5100]

How can we find the chart of the Naira/Dollar exchange market ?

[@jamesikhimioya562]

does this mean we can now buy dollar from the bank? and at what rate would we buy dollar?

[@Masked.man1.]

Pls fisayo what internet would u say is the best for streaming and gaming in nigeria...pls i need your opinion

[@FisayoFosudo]

I might have my bias but I’ve been using MTN’s 5G modem and it’s served me well. I used it to upload this video in 9 minutes 😉 (and it was a 2.3GB file)

[@jenkinsade2111]

Bros abeg no vex noh dey do video on the Dollar to Naira again please Biko. It's currently 1000 to a dollar and will still head upwards as sure as the sun rises and sets daily. This economy is in free fall with no end in sight.

[@mr.guzwee7695]

I looked for this comment because of the figure - 1000

[@Champion_farouks]

Hello Mr Fisayo I'm looking forward to start creating content . But I'm having a budget of 133k so I was thinking of buy camon 20 .but a friend advice I buy iphone x . Please what is your take on this sir . Thanks

[@AbbahTech]

😊😊 Financial Friday is back

[@FisayoFosudo]

🙌🏾🙌🏾

[@MoyinGod]

Are our mastercard & visa card (in Naira) from banks working for international payment now?

[@mekusliberal7155]

Mr Fisayo. Can someone use the niara card to purchase now online.

[@PatrickOdiase]

👏🏾 This is a great video for anyone to understand.. people need to get financial knowledge as its not offered in Schools. 👍🏾

[@mikolowiskamikolowiska4993]

Everyone offered economics. Just say you were not taking it serious. This is basic demand and supply

[@benceze]

The easy and fair access to dollars improves the ease of doing business. However, removal of fuel subsidy and high electricity costs increases the cost of living.