Naira Slumps Further, Trades at N595 Per Dollar Amid Forex Scarcity

Naira Slumps Further, Trades at N595 Per Dollar Amid Forex Scarcity

  • Naira continued its free-fall on as it sold for nearly N600 per dollar at the black market on Friday, May 7, 2022
  • There has been scarcity of the US dollar and other foreign currencies since the CBN stopped the sale of forex to Bureau de Change operators
  • The Bankers Committee had launched an initiative RT200 FX programmed aimed at enhancing forex inflow from non-oil sectors of the economy

Foreign Exchange scarcity has driven the naira to trade at N595 per dollar on Friday, May 7, 2022, in the parallel market.

The Punch report says that Bureau de Change operators said the dollar was purchased at N585 per dollar and sold at N595 on Friday, May 7, 2022.

The local currency was purchased at N590 to a dollar on Monday, May 2, 2022.

Dollar, Naira, CBN, Emefiele
Dollar deprecates further Credit: ljubaphoto
Source: Getty Images

The naira continues to buckle under the dollar

The naira fell by 0.20 per cent to close at N419 after it got to a high of N444 on Thursday.

Do you have a groundbreaking story you would like us to publish? Please reach us through!

The turnover of $108.24 million was recorded at the end of the trading window on Thursday, May 6, 2022.

Nigeria’s apex bank, the Central Bank of Nigeria (CBN) kept the naira at N415.69 per dollar on its website as of Monday, May 9, 2022.

The bank has since stopped foreign exchange allocation to the Bureau de Change operators last year and also stated that it would end further interventions to the banks at end of this year.

Bureau de Change operators plead with CBN to lift ban on forex sale

Bureau de Change operators under the aegis of Bureaux De Change Operators of Nigeria had requested the CBN’s help to ensure the operators continue to supply dollars to the retail end of the forex market.

The National Executive Council of the operators asked that CBN revisit the policy in order to bring a lasting solution and stabilise the naira.

According to the group, the naira had remained fairly stable and converging as the CBN stopped dollar sales to the BDC operators.

Policy not sustainable, experts say

Experts have said that so long as the scarcity of dollar continues, any intervention by the CBN would be a fluke.

The CBN governor, Godwin Emefieleand the Bankers Committee launched RT200 FX Programme to enhance forex supply through the non-oil sector in the next five years.

Emefiele said:

“After careful consideration of the available options and wide consultation with the banking community, the CBN is, effective immediately, announcing the Bankers’ Committee ‘RT200 FX programme’, which stands for the ‘Race to $200bn in FX repatriation.’
“The RT200 FX Programme is a set of policies, plans and programmes for non-oil exports that will enable us to attain our lofty yet attainable goal of $200bn in FX repatriation, exclusively from non-oil exports, over the next three to five years.”

Huge gap in black market, official exchange rate increase Forex scam as banks publish More names

However, has reported that The widening difference between the black market and official rates has worsened the forex fraud, as banks publish more names of Nigerians attempting to cheat the system in an attempt to make more money.

As of Wednesday, 23 February 2022, the dollar exchanged for N416 at the official market and N575 at the black market. This is a gap of over N159.

Checks on the websites of ten commercial banks reveal that over 1,226 identities have been exposed thus far. Read more:


Online view pixel