Naira Nears N800/$ at Official Market as CBN’s Authorised Dealers Raise Dollar Rates
- The naira has crashed to N955 in the parallel market and is closing in on N800 per dollar in the official market
- The move comes as CBN’s authorised dealers increased their dollar rate at the I&E window
- The naira crash has led to a gap of N170 between the official and parallel markets
The Nigerian naira is nearing N800 per dollar at the official market as buyers search for the elusive currency following the foreign exchange squeeze.
On Thursday, September 14, 2023, the naira depreciated to N950 per dollar in the parallel market, the lowest since the Central Bank of Nigeria (CBN) began reforms to unify the markets in June.
Source: Getty Images
Gap between official and parallel markets grows
Findings show that the exchange rate increased by N23 to N950 per dollar from N927 per on Wednesday, September 13, 2023, which caused an increase in the scarcity of dollars in the market.
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Also, the naira crashed in the official Investors and Exporters (I&E) window to N780 per dollar.
The gap between the official and parallel market widened by N170 from N168.88 recorded on Wednesday, September 13, 2023.
The naira crash continued despite the $3 billion oil swap deal obtained by the Nigerian National Petroleum Company Limited (NNPC) from Afreximbank to stabilise the Forex market.
Authorised dealers raise dollar price
Authorised dealers in the official market raised their asking price by N21.88 kobo from N758.12 per dollar at the end of the trading day.
According to reports, the highest naira-to-dollar exchange rate for the day was about N807.13 per dollar, and the lowest was N730 per dollar, data from FMDQ revealed.
Despite the hike in dollar rates, forex buyers raised their transaction value by $16.84 million, a 31.9% in the Investors and Exporter (I&E) window.
Dealers and their clients recorded $69.74 million in Forex transactions at the end of the trading session, surpassing the $52.87 million traded by the Forex dealers the day before.
The euro price also increased in the black market to N1005 per euro, above the N995 per euro traded the previous day.
No plans to make $1 equal N1.25, CBN says, warns commercial banks about spending FX gains recklessly
Legit.ng reported that the Central Bank of Nigeria (CBN) has denied viral social media reports saying it plans to introduce a new foreign exchange policy to make the naira equal to the US dollar.
CBN made the denial on its Twitter page as it reacted to the report on Wednesday, September 13, 2023.
However, on Monday, September 11, 2023, it instructed commercial banks not to use the foreign exchange revaluation gains from the 60% naira devaluation to pay dividends or other operational costs.
Source: Legit.ng
