Black Market Traders Set New Dollar Rate As Naira Falls in Official Market, Gap Widens

Black Market Traders Set New Dollar Rate As Naira Falls in Official Market, Gap Widens

  • The official exchange rate for the naira fell against the dollar, leading black market traders to set a new rate
  • The Central Bank of Nigeria has continued to face the challenging task of finding a solution for the naira in the FX markets
  • It seems none of its recent efforts have worked, and there might be a need to find another solution for the naira

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Black market traders on the street took advantage of the fall of the naira in the Central Bank of Nigeria market.

Bureau de Change traders who spoke to Legit.ng said that dollar demand has increased in the last few days.

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Naira to dollar exchange rate
Naira continues to fall in foreign exchange markets Photo credit: Bloomberg/contributor
Source: Getty Images

Naira to dollar exchange rate

On the Nigerian Autonomous Foreign Exchange Market (NAFEM), which is the official market, FMDQ reports that the naira depreciated to N1478.11 per dollar.

In reaction, black market traders also crashed the naira, selling one dollar as high as N1,520 to Nigerians on the streets of Lagos. This is N41.89 more than the official market rate.

A BDC trader who spoke to Legit.ng said that the new rate reflected the increasing scarcity of dollars in the official channels.

He noted that many businesses, students, and individuals looking to travel have turned to the black market for their foreign currency needs.

His words:

"There is no dollar in the market, and many of my colleagues sell in fear. We look at the naira performance at the official market and try to fix our rates."

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However, a check by Legit.ng showed an improvement in forex supply on the official window on Monday despite the naira depreciation.

During the trading session, the official market recorded a turnover of $217.64 million, up from the $113.78 million reported last Friday, representing a $103.86 million or 91.3% rise.

ABCON promises to make a difference

Meanwhile, in an earlier chat with Aminu Gwadabe, the Association of Bureau de Change Operators of Nigeria (ABCON) said it plans to launch a unified digital trading platform.

He said the platform will help address concerns over undocumented and unregistered platforms like Binance and Bybit.

Peter Obi on new Customs exchange rate

Earlier, Legit.ng reported that the Central Bank of Nigeria also adjusted the Nigeria Customs Service foreign exchange rate to clear imported goods at Nigerian ports.

Peter Obi reacted to the latest changes and expressed concerns that they could kill many businesses.

Read also

Importers to pay more to clear goods at ports as CBN sets new customs duty rate as Naira crashes

He further advised the government on actions to help the naira recover against the US dollar.

Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

Source: Legit.ng

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