BDC Traders Announce New Dollar Exchange Rate After CBN's Decision
- BDC operators have pushed the US dollar exchange rate above N1,400 in the parallel market
- The British pound is also on the rise following the CBN decision to mop up dollars from the market
- The exchange rate gap between the official and black market is now widening
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Bureau De Change (BDC) operators have raised the exchange rate of the United States dollar above the N1,400 mark in the parallel market.
Legit.ng checks across key currency trading hubs in Lagos showed that the dollar is now being sold at N1,428 compared to previous rate of N1335 some days ago.
The latest rate means that in just few days the value of the naira in the black market has depreciated by N93.
Source: Getty Images
Some BDC operators attributed the development to reduced dollar liquidity in the retail segment of the foreign exchange market, forcing buyers to source funds at higher rates.
Abuddullahi a Lagos-based trader said.
“The demand has gone up again, and supply is not sufficient. That is why the rate has crossed N1,400. I Currently buy at N1,402 and sell at N1,428. While for pounds I buy at N1,850 and sell at N1890.
We are still cautious about the dollar but from the market conditions I expect the dollar to continue to rise."
Naira depreciates against dollar
In the official market, naira fell by N2.92 or 0.22 per cent to N1,349.24/$1 from the N1,346.32/$1 it was traded last Friday.
Also, naira depriecated against the Pound Sterling by N6.62 during the trading day to close at N1,821.87/£1 versus the preceding session’s N1,815.25/£1, and lost N6.80 on the Euro to settle at N1,591.42/€1, in contrast to the previous rate of N1,584.62/€1.
The recent deprciation of the naira follows the Central Bank of Nigeria slowing the naira’s gains at the official market and absorbing about $190 million from the local currency market last week, the Nation reprots.
Source: Facebook
The naira had strengthened rapidly at the official window, but its rate declined over the last three trading sessions ending Friday. Analysts warned that continuous naira rallies could prompt foreign investors to pull out of the fixed-income market, selling investment securities and raising demand for the US dollar.
This scenario could strain the market and accelerate dollar outflows from the economy. Despite limited foreign exchange interventions, the naira has remained relatively steady against the dollar.
To stabilise conditions, the CBN, after a long period, resumed buying dollars.
Top bank predicts new naira to dollar exchange rate in 2026
Earlier, Legit.ng reported that Citi Bank projected that the naira will weaken between N1,650 and N1,700 in mid-2026, due to expected pressure driven by lower crude oil prices and new monetary easing cycle.
This is the view of David Cowan, Citibank African economist in a note to clients
In the note, he stated that Nigeria will begin new monetary easing cycle next year, BusinessDay reports.
Source: Legit.ng
