BREAKING: Naira Falls After Maintaining Position For 3 Weeks, See New Exchange Rate

Naira has fallen again after maintaining a position for 3 weeks.

Newsone reports that the Nigerian official currency, the naira depreciated further against the United States dollar at the parallel segment of the foreign exchange (FX) market on Tuesday, June 14, 2022.

This online news platform Bureaux De Change operators (BDCs), popularly known as ‘abokis’ quoted the naira at N607 to the dollar at the black market, a rise of N2 from the N605 position it has exchanged in the past three weeks.

Newsone Nigeria reports that the fall of the naira from N605 to N607/$1 represents a depreciation of N2 or 0.3 percent compared to the N605 it traded almost three weeks ago.

The local currency opened at N607.00 per $1 at the parallel market otherwise known as the black market, today, Tuesday, 14 June 2022, in Lagos Nigeria, after it closed at N605.00 per $1 on Monday, 13 June 2022. The street traders put the buying price of the dollar on Tuesday at N601 and the selling price at N607, leaving a N6 profit margin. A parallel market (street/black market) is characterised by noncompliant behaviour with an institutional set of rules.

Newsone reports that since the suspension of trading information by abokiFX following the intervention of the Central Bank governor, Godwin Emefiele — citizens have resorted to street traders for current parallel market rates of the local currency.

Though the parallel segment is more open to traders and businesses who need foreign exchange (FX), the Central Bank of Nigeria (CBN) has consistently maintained that it represents less than one percent of forex transactions and should never be used to determine the exchange rate.

“The only exchange rate remains the I&E window, which is the market we expect everybody who wishes to procure or sell forex to get it,” Emefiele said.

“I am sorry to say that I do not, and I do not intend to recognise any fx in the market.

“Go to your bank. Even if your limit is above what the bank is selling, put it forward, and we will look into it. “If you want to sell the dollar, go to your bank and sell it,” the CBN Governor said last September.

On the official market side, the local currency depreciated by 0.3 percent to close at N421.25 to the dollar at the end of the last trading day (Friday, June 10), according to details on the FMDQ OTC Securities Exchange, a platform that oversees official foreign exchange trading in Nigeria.

However, the exchange rate between the Naira and the US dollar according to the official market forex data showed that the naira opened at ₦416.6392 per dollar on Tuesday, 14 June 2022, after it closed at ₦415.1304 = $1 on Monday, June 13, 2022. An exchange rate of N444 to the dollar was the highest rate recorded within the day’s trading and a low of N413.

The Association of Bureaux De Change Operators of Nigeria (ABCON) recently urged the Central Bank of Nigeria (CBN) to use its members as a tool to stabilise the FX market.

Meanwhile, Newsone Nigeria reports that the USD started this week at ₦605 in Parallel Market also known as Black Market on Monday, 13 June 2022, in Lagos Nigeria, after it opened at ₦605 last week Monday 6 June 2022.