Traders Sell Dollar at Higher Exchange Rate As Naira Crashes in Official, Black Markets

• The naira recorded a poor performance against the US dollar in both the official and unofficial exchange market
• Latest data showed that the naira lost over N10 in the official market and about N55 in the unofficial market
• The new exchange rates are a reversal of the stability the naira enjoyed against the dollar 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.

The Naira currency depreciated against the US dollar for the third straight day this week on Thursday, March 7

Data showed that the naira in the Nigerian Autonomous Foreign Exchange Market (NAFEM) closed against the dollar at N1,512.55.

Thursday's exchange rate is 0.73% or N10.94 fall of the naira when compared with Wednesday’s closing price of N1,501.61/$1.

In the same vein, the Nigerian currency tumbled against the pound sterling yesterday by N14.39 to sell for N1,912.54/£1 versus the previous day’s rate of N1,898.15/£.

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Naira also lost N97.37 against the euro to finish at N1,608.55/€1, in contrast to midweek’s rate of N1,553.41/€1.

Niara to dollar black market

Similarly, the Nigerian currency had a bad outing against the dollar in the parallel market also known as the black market on Thursday.

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 Thursday, March 6.

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.

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.

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Again, naira crashes by N55 against the US dollar to new exchange rate in black market

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.

The pressure on the naira comes amid worries about the declining foreign reserves, which have fallen in the last two months.

In December, it crossed $40 billion, but it has since dropped to $38 billion as of the end of February.

Bank releases new requirements to buy dollar at cheaper rate

Legit.ng previously reported that Wema Bank has announced the availability of foreign exchange (FX) for personal transactions under the newly launched Electronic Foreign Exchange Matching System (EFEMS).

The bank stated this in an email update sent to customers titled; 'Important update: EFEMS funds for invisible transactions are now available.

Wema Bank explained that the EFEM provides customers access to FX for Tuition Fees, Personal Travel Allowance (PTA), Business Travel Allowance (BTA), medical expenses, and other personal transactions under Form A.

Source: Legit.ng