Naira has crashed again on the black market with a new exchange rate emerging.
Newsone reports that the Nigerian official currency, Naira has fallen massively a week after a steady gain which saw the Nigerian currency trading at N649 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 Tuesday evening, August 9, 2022, showed that the naira to USD exchanged at N668/$1, a day after 1 dollar to naira exchanged at N665/$1 and a week after usd to naira exchanged for N649/$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 N668/$1 at the parallel market otherwise known as the black market as against the N665/$1 it traded yesterday, August 8 and N649/$1 it traded at last week. This shows that the Naira lost N19 between Friday, August 5 when the dollar naira traded at N668/$1, and today, Tuesday, August 9 after the naira to dollar opened at N665/$1.
Checks by Newsone Nigeria, show that the local currency traded at N668.00 per $1 at the parallel market otherwise known as the black market today Tuesday evening, 9 August 2022, in Lagos Nigeria, after it closed at N665.00 per $1 on Monday, 8 August 2022.
Newsone Nigeria reports that on the black market, the players buy a dollar for N665 and sell for N668 on Tuesday evening, August 9, 2022, after they bought N660 and sold for N665 yesterday, Monday, August 8, 2022.
On the official market, the exchange rate between the naira and the US dollar closed at N431/$1 at the Investors and Exporters (I&E) window, where forex is traded officially.
Naira started the week on a bearish note, with a 0.67% depreciation to close at N431/$1 compared to N428.12/$1 recorded in the previous trading session. This is despite a 60.83% increase in the amount of forex traded in the market at $115.67 million.
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 trades at the parallel market (black market) at ₦668 per $1 today, 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.”
Disclaimer: NEWSONE NIGERIA does not set or determine forex rates. The official NAFEX rates are obtained from the website of the FMDQOTC. Parallel market rates (black market rates) are obtained from various sources including online media outlets. The rates you buy or sell forex may be different from what is captured in this article.