Due to the New Naira, Aliko Dangote and Abdulsamad Rabiu have each lost $5.85 billion. The Bloomberg Billionaire Index (BBI) says that two ...
Due to the New Naira, Aliko Dangote and Abdulsamad Rabiu have each lost $5.85 billion.
The Bloomberg Billionaire Index (BBI) says that two of Nigeria's richest men, Aliko Dangote and Abdulsamad Rabiu, lost a total of $5.85 billion in a recent event.
This loss happened soon after the Central Bank of Nigeria (CBN) made some changes to the country's currency, which caused changes in the foreign exchange market.
The Bloomberg Billionaire Index (BBI) is a website that ranks the richest people in the world every day.
(BBI) data from June 15, 2023, shows how much money Nigeria's wealthiest people have lost in their daily work.
Aliko Dangote, who is the richest black person in the world and the richest person in Africa, is the CEO of the Dangote Company and the Chairman of the Dangote Group. He lost about $3.12 billion when the naira currency system was changed. In a similar way, Abdulsamad Rabiu, the head of BUA Group, has lost 2.73 billion dollars of his wealth.
The loss happened just one day after the country's central bank, CBN, decided to change things so that the country's banks could trade in dollar prices on the common foreign exchange market.
It's possible that the recent rise in the price of the Naira caused a change in the currency market, which hurt these rich people's finances.
Under the new system, the value of the Naira is based on what people are willing to pay for it on the foreign exchange market. This means that Nigeria will no longer have a set exchange rate for buying and selling foreign currencies. So, the Central Bank of Nigeria (CBN) no longer has any direct role in the foreign exchange market.
According to figures from the FMDQ OTC Securities Exchange, the Naira closed at N664/dollar on Wednesday at the Investors and Exporters (I&E) market, after moving between N700 and N755 to the US Dollar.
The Investors and Exporters (I&E) window is Nigeria's legal place to trade on the exchange market. I give investors, exporters, and company owners a place to buy and sell foreign currencies at exchange rates that are set by the market.
Analysts say that the changes in the currency exchange market caused by the rise of the Naira played a role in the traders' loss of wealth, even though the exact reasons haven't been found out.
As Nigeria's business environment continues to adjust to the new foreign exchange system, market participants, including billionaires like Dangote and Rabiu, will need to take into account the changing economic climate to reduce transaction risk. finance and make the most of new possibilities as they come up.
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