Naira has fallen massively at the black market as traders begin hoarding.
Newsone reports that the Nigerian currency, Naira fell massively to the US dollar at the black market on Wednesday, amid an increase in hoarding activities from traders.
A report monitored on Ripples Nigeria by Newsone Nigeria, says the newspaper spoke to some of the market traders in Lagos State who all confirmed that Naira was exchanging within the band N595 – N598 to a dollar.
READ ALSO: Black Market Dollar To Naira Exchange Rate Today 14th April 2022
According to the report, one of the traders laughing over the phone warned the Ripples Nigeria reporter to come early because there were limited dollars in supply and the exchange rate was set to increase further.
Newsone recalls that as of Wednesday last week, Naira exchanged at N585 to a dollar. It was also the same for Naira at the official market as it depreciated marginally to the US dollar.
FMDQ reports that the exchange rate between the naira and the US dollar closed at N416.67/$1 at the Investors and Exporters (I&E) window. This is a 0.01% drop in value compared to N416.62/$1 recorded in the previous trading session. Naira’s drop in value follows a 21.19% drop in FX supply at the official market as only $113.72 million exchanged hands.
Meanwhile, Newsone reports that the Association of Bureaux de Change Operators of Nigeria (ABCON) says the continued suspension of foreign exchange (forex) to its members is already taking its toll on the nation’s economy.
According to ABCON, “It is on record that the CBN policy of stoppage of FX sales to BDCs did not only create higher demand pressure but also made the value of our national currency useless.”
The CBN announced the suspension of FX sales to BDC operators in the country in July 2021, while noting that commercial banks would take over the services provided by the BDCs.
Head of ABCON group, Aminu Gwadabe has called on the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, to urgently reverse its decision and resume the sale of FX to its members as he said the Naira was hurting.
