Naira has fallen massively to the lowest in history with a new exchange rate emerging.
Newsone reports that the Nigerian official currency, Naira has fallen massively weeks after a steady rate which saw the Nigerian currency trading at N615 per $1 at the parallel market otherwise known as the black market.
A survey conducted by Newsone Nigeria at the Bureau De Change (BDC) market in Lagos, Nigeria’s commercial city, on Friday evening, July 22, 2022, showed that the naira to USD exchanged at N658/$1, a day after 1 dollar to naira exchanged at N640/$1 and weeks after usd to naira exchanged for N615/$1.
While the speculators were hoping to see a further crash of dollars to naira after the primaries of top political parties in Nigeria, the ruling All Progressives Congress (APC) and the Peoples Democratic Party (PDP), the reverse is the case as the naira trades at N658/$1 at the parallel market otherwise known as the black market as against the N640/$1 it traded yesterday, July 22 and N615/$1 it traded at the beginning of the week. This shows that the Naira lost N43 between Monday, July 18 when dollar naira traded at N615/$1, and today, Friday, July 22 that the naira to dollar opened at N658/$1.
The local currency opened at N658.00 per $1 at the parallel market otherwise known as the black market today Friday, 22 July 2022, in Lagos Nigeria, after it closed at N640.00 per $1 on Thursday, 21 July 2022.
Newsone Nigeria reports that on the black market, the players buy a dollar for N655 and sell for N658 on Friday morning, July 22, 2022, after they bought N610 and sold for N615 at the beginning of the week, Monday, July 22.
Meanwhile, Newsone Nigeria reports that this is coming months after the Central Bank of Nigeria (CBN) had on July 27, 2021, suspended foreign exchange (forex) sales to BDC operators and directed all those with a genuine need for forex to revert to banks. The naira lost value at a whooping N85 to the dollar in less than two months from N490/$1 to N575/$1 on September 20, 2021.
Even though the dollar to naira opened at the parallel market (black market) at ₦658 per $1, Newsone reports that the Central Bank of Nigeria (CBN) does not recognise the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.
The governor of the Central Bank of Nigeria (CBN), Godwin Emefiele in September 2021, described the parallel market otherwise known as the black market as an illegitimate market.
“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.”
Emefiele said the apex bank had been investigating the abokiFX website and its owners in the last two years.
“We have been studying the activities of abokiFX in the last two years,” he added. “There was a time we asked our colleagues to call the abokiFX to ask how he conducts the rates.
“He is a Nigerian, living in England, we will track him, Mr Oniwinde, we will track you. “We cannot allow you to continue to kill our economy.”