Again, Naira Crashes by N55 against US Dollar to New Exchange Rate in Black Market

• The Nigerian currency has once crashed against the US dollar in the black foreign exchange markets
• Traders told Legit.ng that at the parallel exchange market, the naira's value fell by over N55 on Thursday
• The latest exchange rate movement is a reversal from the naira performance in the past few weeks

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.

Bureau de Change operators selling on the street have crashed the naira exchange rate against the dollar.

Traders who spoke to Legit.ng gave the new buying exchange rate for a dollar at N1,520 as of 4 pm on Monday, September 2, 2024.

The selling rate to Nigerians is between N1,585 and N1580 per dollar, indicating a N55 difference when compared to the previous rate of N1,525.

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Also checking on online platforms such as Chipper Cash shows the dollar selling rate has increased to N1,730.

It was the same scenario for the naira against the British pound sterling and also the euro.

Traders also said the buying rate for the British pound is N1970, while the selling rate is N2,000 The euro is bought at N1,580 and sold at N1,600.

A currency trader, Abudulahi, explained to Legit.ng that the dollar's new exchange rate is due to high demand.

He said:

"The market is experiencing increased demand for dollars. I am not sure why but our rates fluctuate based on the prevailing demand and transaction amount."

Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to resume sales of dollars directly to BDCs.

In a chat with Legit.ng, he said that the BDCs are constrained on availability, unfavourable offer rates, limited participating banks, lower margins and business uncertainties.

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Naira to dollar in official market

On Wednesday, at the official foreign exchange market, the naira weakened as the dollar was quoted at N1,500.80, reflecting a 0.6% decline or N9.13 loss from the previous closing rate of N1,491.67, according to data from FMDQ Securities Exchange Limited.

Data from the CBN showed a slight depreciation, with the naira trading at N1,505 per dollar on Wednesday, compared to N1,502 on Tuesday at the Nigerian Foreign Exchange Market (NFEM).

Authorised currency dealers quoted the highest dollar rate at N1,505 on Wednesday, up from N1,503 on Tuesday. The lowest rate recorded on Wednesday was N1,497.10, compared to N1,490 the previous day.

Foreign reserves drop

Legit.ng previously reported that Nigeria’s foreign exchange reserves maintained a downward trend, declining by 3.3% month on month.

The latest data from the CBN showed that the reserves dropped from $39.72 billion on 31st January to $38.42 billion by 28th February 2025.

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Naira appreciates by 8.5% against US dollar, traders sell at new exchange rate in black market

This indicated a decline of about $1.31 billion within one month, showing major challenges for the country despite the recent naira appreciation and recovery.

Proofreading by Muhammed Kola, copy editor at Legit.ng.

Source: Legit.ng