Dollar Crashes Below N1,400 at Black Market, Traders Announce New Exchange Rates
- The selling and buying rate of the US dollar at the black market has dropped below N1,400 per dollar
- The naira also gained against the pound sterling and euro, supported by improved foreign exchange supply
- Reports claim that BDC operators have been unable to purchase dollars from commercial banks
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The naira has strengthened against the United States dollar to below N1,400 at the parallel market amid improved supply conditions.
At the black market, the local currency appreciated by N30 against the dollar to trade at N1,390/$1 on Wednesday, February 18, compared with N1,420/$1 recorded a day earlier.
Source: Getty Images
Abudulahhi, a forex dealer, told Legit.ng:
"I am currently selling dollars at N1,390/$1 and buying at N1,370/$1. For now, I am trying to avoid buying dollars because I am not sure where the rate is headed. I’m not the only one; some people are also buying as low as N1,350 to minimize losses."
Similarly, at the GTBank forex desk, the naira gained N4 to exchange at N1,363/$1 versus the previous rate of N1,367/$1.
Nigerian currency also advanced in the official market against the dollar by N11.82 or 0.88% to close at N1,335.96/$1, up from Monday’s N1,347.78/$1.
Against other currencies in the official market naira appreciated by N32.43 against the pound Sterling to settle at N1,806.75/£1 from N1,839.18/£1, and strengthened by N18.82 against the euro to close at N1,579.24/€1 compared with N1,598.06/€1 in the previous session.
Why naira is on the rise
Market analysts attributed the currency’s performance to improved foreign exchange.
Exporters, non-bank corporates and other market participants is expected to further enhance liquidity and stabilise flows in the coming sessions.
Nigeria’s external reserves have also increased to $47.80 billion after increasing by $135.75 million, supported by stronger oil-related inflows and improving market stability.
Source: Getty Images
BDCs yet to buy dollar from banks
BusinessDay reports that Bureau De Change (BDC) operators have struggled to buy dollars from commercial banks a week after the Central Bank of Nigeria (CBN) allowed them back into the Nigerian Foreign Exchange Market (NFEM).
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Some operators said the difficulties stem from strict conditions in the CBN’s recent circular to BDCs and authorised dealers, which have created operational delays and slowed market participation.
Dangote predicts N1,100/$ exchange rate
Earlier, Legit.ng reported that the chairman of the Dangote Group, Aliko Dangote, has predicted a strengthening of the Nigerian naira, saying the currency could reach N1,100 to $1 this year.
While the naira currently trades at around N1,300 to the dollar, Dangote said the government’s reforms are starting to yield positive results for manufacturers.
Dangote made the comments on Tuesday, February 17, during the launch of the Nigeria Industrial Policy in Abuja, an event attended by Vice President Kashim Shettima, the Secretary to the Government of the Federation, George Akume, representatives from the Manufacturers Association of Nigeria, the United Nations, and industry leaders.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
