Black Market Traders Predict New Naira to Dollar Exchange Rate, Suspend Dollar Purchase
- A new naira to the dollar exchange rate is now expected as the foreign currency continues to deprecate in the FX markets
- In the black market, the naira has dropped by over N150 within a week, leaving forex dealers to count their losses
- The CBNs new Electronic Foreign Exchange Matching System (EFEMS) has been a key factor in naira appreciation
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.
The value of the United States dollar has experienced a significant decline against the naira in all FX markets, with black market operators predicting further depreciation in the coming days.
The crash comes amid recent measures by the Central Bank of Nigeria (CBN) to stabilise the naira.
Source: Getty Images
On Monday, December 2, the CBN kicked off the Electronic Foreign Exchange Matching System (EFEMS), a centralised platform that will publish daily FX rates for public access.
Since its introduction, the naira has performed strongly in official and unofficial markets.
Naira to dollar exchange rate
As of Friday, December 6, the naira closed at N1,535/$1 a dollar in the Nigerian Foreign Exchange Market (NAFEM).
While in the black market, one dollar sold at N1,580/$1, a huge drop from the previous rate of above N1,700 just a few days ago.
The dollar crash reduced the margin between the parallel market and the NAFEM rate to around N45 per dollar from over N100 just a few days ago.
Currency traders predict further dollar crash
Vanguard reports that currency traders expect the dollar to continue its free fall this week in the black market.
Yakubu Giwa quoted said:
"We black market traders are struggling to sell what we bought. We no longer buy because there are real concerns that the naira might appreciate to N1,300 or N1,200 per dollar before next weekend. So We are cautiously buying dollars.”
At one point last week, Forward Marketing Communication Bureau de Change was forced to suspend dollar purchases due to the volatile exchange rates.
CBN adjusts Customs exchange rate
In a similar development, Legit.ng reported that the appreciation of the naira had helped the CBN reduce the dollar exchange rate for clearing imported goods at airports and ports.
A trade portal revealed that the dollar exchange rate for customs import duty is no longer ₦1,588 per dollar.
This development means importers would pay less starting Monday.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
Source: Legit.ng
