Dollar Crashes To ₦550 At Black Market As BDC Operators Lament

Dollar has crashed to ₦550 at the black market with BDC operators lamenting.

Newsone reports that the US dollar crashed on Tuesday, November 9, 2021 as Naira closed the day at ₦550 with massive gain of ₦18 at the parallel market also known as the black market.

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 on Tuesday, November 9, 2021, trading at ₦550 per a dollar with Bureau De Change (BDC) operators buying buying at ₦545 per dollar in the Lagos market as monitored by Newsone Nigeria correspondents.

The  dollar to naira exchange rate which saw BDC operators buying at ₦545 and selling ₦550 in the Lagos market  on Tuesday, is against the ₦565 and ₦570 per dollar they bought and sold at the Lagos market i  recent times.

BDC Operators lament dollar crash against naira…

CBN Governor, Godwin Emefiele.

Newsone reports that the US dollar crash against Nigeria’s official currency, naira on Tuesday, was a cause for concern for BDC operators who lamented to sudden fall in the market of the dollar to naira exchange rate.

One of the BDC operators who spoke to Newsone Nigeria on Tuesday evening, expressed bitterness that the market is not longer lucrative as it used to be some months ago, putting the blame on CBN vs Aboki FX saga.

“Since Aboki FX stopped publishing rates, we are a bit confused. Before, we check Aboki FX in the morning before we trade but now we have to call our brothers (other BDC operators in different locations) before we know what to buy and sell. This is not good”, he lamented.

Another disgruntled BDC operator told Newsone Nigeria reporter that: “Dollar crashed to ₦550 this evening, though in the morning it was ₦560“, he said after which he lamented in pidgin English, saying: “Di way dis dollar dey fall no good, business just spoil. I pray say e go rise tomorrow (referring to today, November 10).

While most of the operators lamented, one BDC operator on the other hand, expressed optimism that the dollar will rise again before or during the festive season.

“Before December we will see a rise, it might go back to ₦560 per dollar because many people will be looking for dollars.

VP Osinbajo’s advice to CBN over dollar to naira exchange rate…

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.

VP Osinbajo.

“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.”