Dollar Shortage
Newsonline reports that the US dollar gained on Friday evening, November 12, 2021 as the dollar closed the day at ₦540 with a gain of ₦10 at the parallel market also known as the black market after a “major fall”.
This online news platform understands that the United States of America official currency, the dollar gained at the parallel market also known as the black market on Friday evening, November 12, 2021, trading at ₦540 per a dollar with Bureau De Change (BDC) operators buying buying at ₦535 per dollar in the Lagos market as monitored by Newsonline Nigeria correspondents.
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The dollar to naira exchange rate which saw BDC operators buying at ₦535 and selling ₦540 in the Lagos market on Friday, was against the ₦525 and ₦530 per dollar they bought and sold at the Lagos market in on Friday morning.
Newsonline Nigeria reports that the rise is coming a day after a major fall at the black market and months after AbokiFX, a web platform that reports movements in the foreign exchange market since as early as 2014, suspended dollar to naira exchange rate updates on its website after the Central Bank of Nigeria (CBN) accused the black market exchange rate platform of being responsible for the sliding of naira against dollar at the parallel market.
“The only exchange rate remains the I&E window, which is the market we expect everybody who wishes to procure or sell forex to get it,” CBN Governor Godwin Emefiele had said in September, 2021.
“I am sorry to say that I do not, and I do not intend to recognise any fx in the market.
“Go to your bank. Even if your limit is above what the bank is selling, put it forward, and we will look into it. “If you want to sell the dollar, go to your bank and sell it.”
Emefiele said the apex bank had been investigating the abokiFX website and its owners in the last two years.
“We have been studying the activities of abokiFX in the last two years,” he added. “There was a time we asked our colleagues to call the abokiFX to ask how he conducts the rates.
Reacting to the allegation, AbokiFX temporarily suspended rates on all its platforms, amidst an investigation by the Central Bank of Nigeria (CBN).
“AbokiFX has taken the decision today, the 17th of September 2021, to temporarily suspend rate updates on all our platforms, until we get better clarity of the situation.
” Final rates have been posted this evening but the abokiFX news section and the crypto rates section will still be active,” they said.
The statement continued: “We sincerely hope this suspension will lead to the Naira appreciation from next week,” they added.
Meanwhile, Newsonline Nigeria reports that the dollar to naira exchange rate today is coming after Nigeria’s Vice President, Prof. Yemi Osinbajo, called on the Central Bank of Nigeria (CBN) led by Godwin Emefiele last month to allow the naira reflect the realities of the market.
The Vice President had said the exchange rate is artificially low and deterring investors from bringing foreign exchange into the country.
“Prof. Osinbajo is not calling for the devaluation of the Naira. He has at all times argued against a willy-nilly devaluation of the Naira,” Laolu Akande, spokesperson to Vice-President had explained in a statement.
“For context, the Vice-President’s point was that currently the Naira exchange rate benefits only those who are able to obtain the dollar at N410, some of who simply turn round and sell to the parallel market at N570.
“It is stopping this huge arbitrage of over N160 per dollar that the Vice-President was talking about. Such a massive difference discourages doing proper business, when sell ing the dollar can bring in 40% profit!
“This was why the Vice-President called for measures that would increase the supply of foreign exchange in the market rather than simply managing demand, which opens up irresistible opportunities for arbitrage and corruption.
“It is a well–known fact that foreign investors and exporters have been complaining that they could not bring foreign exchange in at N410 and then have to purchase foreign exchange in the parallel market at N570 to meet their various needs on account of unavailability of foreign exchange.”
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