Dollar Crashes Again, Official, Black Market Exchange Rate Gap Now N30
- The value of the naira has once again appreciated against the United States dollar in the black market
- The latest data showed that the dollar exchange rate in the black market is now nearing convergence with the official market
- The Central Bank of Nigeria is determined to find a solution to the naira's fall and its latest move is working
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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.
Naira recorded another strong performance against the US dollar in the parallel market also known as the black forex market.
BDC operators told Legit.ng that the dollar crashed further on Thursday, February 6, and now sells at N1,552, while the buying rate was quoted at N1,530
Source: Getty Images
The latest development marked an improvement from the N1,582 selling rate and the N1,565/$ buying rate quoted on Wednesday.
Abdullahi, a BDC trader, told Legit.ng that the dollar is experiencing a swift decline in the black foreign exchange market.
He said:
"We are being very careful when buying dollars because we don't know what will happen in the next few hours.
"The dollar market is at a low, and we are having fewer customers, even online where we advertise our rates."
Naira/dollar: Official and unofficial market rate gap closes
The latest movement in the naira exchange rate indicated that the gap between the official and black markets is nearing convergence.
FMDQ Securities on Thursday, February 6, revealed that the value of the naira in the Nigerian Autonomous Foreign Exchange Market (NAFEX), the official market, closed at N1,500.65/$
With the black market exchange rate now at N1,530/$, the gap between the official and black markets is now less than N31.
CBN's latest policies to help naira
The Central Bank of Nigeria (CBN) recently announced that it had extended the window of allowing Bureau De Change (BDC) operators to buy FX from the official market until the end of May.
This policy allows BDCs to purchase $25,000 worth of forex per week and should not resell to their customers at a profit margin above one per cent.
Also, BDCs can only disburse purchased FX for specific transactions, with a maximum of $5,000 per transaction, quarterly.
However, in a chat with Legit.ng, Aminu Gwadabe, Association of Bureau de Change Operators of Nigeria president aid BDC operators are struggling to buy dollars from CBN.
His words:
"Since the introduction of the circular no any bank that has sold any dime to BDC despite the positive impact the announcement created in stabilising and elimination of volatility in the market.
"I therefore advise the Central bank to revisit the circular and ensure the bankers do the needful."
CBN okays another currency for export repatriation proceeds
Legit.ng previously reported the CBN approved the CFA franc to be recorded on the Nigeria Export Proceeds form to repatriate export earings.
According to NEPC, the CFA Franc is a currency widely used in international trade, and the council had discussed its inclusion with the CBN.
The executive director of NEPC said it was committed to improving the calibre of Made-in-Nigeria goods.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
