Naira Crashes at Black Market, Traders Sell Dollar, Euro, Pound at New Exchange Rates
- The value of the Nigerian currency has depreciated further on the first trading day of September 2024
- Checks by Legit.ng showed that at the parallel exchange market, the naira's value fell by over N10 in the early hours of Monday
- Traders said the latest exchange rate movement reflects the market pressure and low supply of dollars
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 selling on the dollar at over N1,600 to Nigerians seeking foreign currency for travel or other needs.
Traders who spoke to Legit.ng gave the new buying exchange rate for a dollar at N1,625 as of 2.15 pm on Monday, September 2, 2024.
Source: Getty Images
The selling rate to Nigerians is between N1,638 and N1,640 per dollar, indicating a profit margin of N15 for the traders.
The exchange rate is even worse on fintech platforms such as Chipper Cash.
A check by Legit.ng showed that a customer looking to top up their dollar card would pay N1,804.7 per dollar.
Traders also said the buying rate for the British pound is N2,210, while the selling rate is N2,140. The euro is bought at N1,770 and sold at N1,785.
A currency trader, Abudulahi, explained to Legit.ng that the dollar rate is due to high demand and low supply.
He said:
"You know this is the ember month now; demand for dollars is high, and the Central Bank of Nigeria has stopped selling dollars to us.
"Our rates, as I told you, are based on the level of demand and the amount needed. The higher the amount to convert, the lower the rate, and vice versa."
CBN expected to intervene
Meanwhile, there are expectations that the CBN will intervene in the forex exchange market this week to stabilize the naira.
In August, the naira lost N24 of its value.
The apex bank is expected to inject more dollars into the official market and sell to BDC operators cheaper.
Two 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.
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Source: Legit.ng
