Black Market Traders Quote New Dollar Exchange Rate, CBN Fights Back
- Bureau de Change (BDC) traders have adjusted their exchange rates for Nigerians looking to buy dollars
- The latest exchange rate reflects the current state of the market, especially in the unofficial forex markets
- The CBN has quickly reacted and has conducted another forex sale round to licensed BDC operators to address customer demand
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Black market traders are quoting the dollar at over N1,600 to Nigerians seeking quick access to foreign currency for travel or other needs.
Traders who spoke to Legit.ng gave the new buying exchange rate for a dollar at N1,610 as of 2.15pm on July 18, 2024.
Source: Getty Images
Meanwhile, traders buy from customers at rates as high as N1,590, leaving a margin of N20.
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The exchange rate is even worse on fintech platforms such as Chipper Cash.
A check by Legit.ng showed that a customer looking to convert naira to dollars for dollar card funding or savings on the Chipper cash platform would pay N1,776/$.
Meanwhile, for dollars to naira, the exchange rate is N1,548.
A currency trader, Abudulahi, explained to Legit.ng that the dollar rate is due to high demand and low supply.
He said:
"Most of us here only have a few thousand dollars; the market is so dry."
CBN moves to help naira
Meanwhile, the CBN has taken a decisive step in finding a solution to the current forex crisis and stabilising foreign exchange rates.
The latest move is the sale of $20,000 each to BDCs at N1,450/$1 to meet the demand for invisible transactions.
The country currently has 1,583 approved BDC operators, and the CBN hopes they will take advantage of the opportunity.
To ensure no round-tripping, the CBN also fixed an exchange rate limit for the BDCs when selling to Nigerians seeking dollars.
New platforms identified as threats to naira
Earlier, Legit.ng reported that Nigerians identified the emergence of two cryptocurrency platforms as the reason for the recent fall of the naira.
The earlier decline of the naira was attributed to alleged market manipulation by Binance.
Nigerians have blamed the latest depreciation on new crypto exchange platforms, namely BYBIT and BITGET.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
