Naira has gained massively at black market as dollar continues to fall.
This online news platform understands that the United States of America official currency, the dollar crashed at the parallel market also known as the black market throughout the week, trading at ₦560 per a dollar with Bureau De Change (BDC) operators buying between ₦555 and ₦557 per dollar in the Lagos market as monitored by Newsone Nigeria correspondents throughout the week.
The dollar to naira exchange rate which saw BDC operators buying between ₦555 and ₦557 per dollar and selling ₦560 in the Lagos market during the week, is against the ₦565 they bought and sold at between ₦565 and ₦570 per dollar in the Lagos market the previous weeks.
Meanwhile, Newsone Nigeria reports that the dollar to naira exchange rate today is coming after Nigeria’s Vice President, Prof. Yemi Osinbajo, called on the Central Bank of Nigeria (CBN) led by Godwin Emefiele last month to allow the naira reflect the realities of the market.
The Vice President had said the exchange rate is artificially low and deterring investors from bringing foreign exchange into the country.
“Prof. Osinbajo is not calling for the devaluation of the Naira. He has at all times argued against a willy-nilly devaluation of the Naira,” Laolu Akande, spokesperson to Vice-President had explained in a statement.
“For context, the Vice-President’s point was that currently the Naira exchange rate benefits only those who are able to obtain the dollar at N410, some of who simply turn round and sell to the parallel market at N570.
“It is stopping this huge arbitrage of over N160 per dollar that the Vice-President was talking about. Such a massive difference discourages doing proper business, when sell ing the dollar can bring in 40% profit!
“This was why the Vice-President called for measures that would increase the supply of foreign exchange in the market rather than simply managing demand, which opens up irresistible opportunities for arbitrage and corruption.
“It is a well–known fact that foreign investors and exporters have been complaining that they could not bring foreign exchange in at N410 and then have to purchase foreign exchange in the parallel market at N570 to meet their various needs on account of unavailability of foreign exchange.”