Naira's Free Fall Continues As Black Market Traders Sell One Dollar Above N1,300
- Nigerian currency continued its free fall both on the official and black foreign exchange markets
- At the unofficial window, the value of the naira hit another new low while the official window returned to above N800
- The federal government has promised to help the naira recover and has introduced several new forex policies
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Naira's poor performance on the foreign exchange market continued at the Central Bank of Nigeria's official window and the black market.
Data obtained from FMDQ securities showed that at the Nigerian Autonomous Foreign Exchange Market (NAFEM) official window, the value of the naira closed at N837.49 against the US dollar on Thursday, October 26, 2023.
This represents 4.94% depreciation compared to the exchange rate of N798.01 per dollar quoted the previous day.
Source: Getty Images
This indicates that N1 million naira could buy $1,253 at the official market on Wednesday, but on Thursday, to buy $1,253, a Nigerian would need N1.040 million.
The federal government has promised that more dollars will be supplied into the market in the next few weeks to clear up all the backlogs of forex demands to stabilise the naira.
The dollar exchange rate at the black market
It was the same story at the parallel foreign exchange market, also known as the black market.
TheCable reports that Bureau de Change operators sold one dollar at the black market t N1,315 on Thursday, October 26, higher than the N1,260/$1 exchanged on Wednesday.
A trader, Musa, who spoke to Legit.ng, said:
" Dollar is no longer N1,200; the supply is unavailable to meet demands from Nigerians travelling and importing."
However, there was a remarkable improvement in the P2P section, mainly used by fintech.
Data shows one dollar was exchanged at N1,020, compared to the previous day's exchange rate of N1,253/$1.
CBN identifies banks' roles in naira free fall, moves to crash dollar
Legit.ng earlier reported that there is hope on the horizon for the naira against the US dollar at the foreign exchange markets
The CBN has set its eyes on banks and black market traders as it moves to help the naira recovers
The apex bank has also identified some of the reasons the naira is depreciating and efforts to sanction defaulters
Source: Legit.ng
