“N800/$”: Black Market Traders Sell Dollar Cheaper Than Banks as Exchange Rates Near Convergence

• The Nigerian currency continues its free fall against the US dollar since the Central Bank of Nigeria decided to float the naira
• The new closing rates for the official and black markets are now very close, far closer than they have been in years
• President Tinubu, in his inaugural speech, made clear the need to allow market forces to determine the value of the naira

Since the Central Bank of Nigeria's (CBN) decision to float the naira in the official market, the multiple exchange rates are beginning to merge.

Legit.ng observed that the Naira closed at nearly the same rate across the Investors and Exporters window, the Peer-to-Peer market, and the black market on Monday, June 19, 2023.

Naira to dollar at official market

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Data from FMDQ securities, where the naira is officially exchanged, shows that the naira against the US dollar closed at N770.38/$1 at the I&E segment.

This represents a 16.2% or N107.34 loss of its value compared to the closing rate of N663.04/$1 achieved last Friday, June 16, 2023.

In fact, during trading on Monday, the Naira exchanged for as high as N799 to a dollar, indicating that it is only a matter of hours before it crosses the N800/$ mark.

The massive fall of the Naira comes amid a decline in the forex turnover by 74.98% or $233.80 million to $78.03 million from the $70.74 million recorded in the preceding trading session.

Naira to dollar exchange rate at black market

Similarly, the P2P window, which is the rate the naira exchanges online, shows the Nigerian currency experienced a N2 loss to close at N772 against the United States currency on Monday, compared to the previous trading session's rate of N770/$1.

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Naira trades at N759 per dollar as devaluation takes effect, closes at N770/$ on I&E window

Also, naira depreciated against the US Dollar in the black market by N13, resulting in an exchange rate of N769/$1, in contrast to the preceding session's rate of N756/$1.

This indicates that the dollar was sold at a lower rate compared to the rates quoted by banks and other official forex dealers.

"It remains naira card": CBN lifts dollar deposit restriction on bank accounts

Meanwhile, in another report, the CBN has removed the dollar cash deposit restrictions on domiciliary accounts that were put in place under the leadership of Godwin Emefiele.

The latest development will allow Nigerians to have unrestricted access to funds in their accounts.

It is expected that the new policy changes would enhance liquidity and stability in Nigeria's foreign exchange market.

Source: Legit.ng