Naira has crashed to an all-time record low in the parallel market, see the new exchange rate below.
Newsonline reports that the Nigerian official currency, the naira has fallen to a record low on the parallel section of the foreign exchange, FX market, popularly called the black market or Aboki dollar market.
This online news platform understands that the black market dollar to naira exchange rate traded at a minimum of N745 per $1 on Friday evening, October 14, 2022, as against the N735 the naira to the dollar traded the previous day.
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The dollar to naira exchange rate of N745.00 per the US dollar represents a depreciation of N10 from the N735 1 USD to naira it traded the previous at the black market, Newsonline reports.
A survey conducted by Newsonline Nigeria at the Bureau De Change (BDC) market in Lagos, Nigeria’s commercial city, on Friday evening, October 14, 2022, shows that the naira to usd exchanged at 745/$1 after it started the day on N737/$1, failing to maintain N735.00 position of 1 dollar to naira it held since the beginning of the week. days now.
The local currency opened at N737.00 per $1 at the parallel market otherwise known as the black market on Friday, 14 October 2022, in Lagos Nigeria but moved to N745 in the evening after it closed at N736.00 per $1 on Thursday, 13 October 2022.
Newsonline reports that at the black market, the players purchase the greenback at N740/$1, and then sell at N745 to make a profit of N5 on Friday evening, October 14, 2022, after they bought a dollar at N733.00 and sold for N735.00 the previous day, Thursday, October 13, 2022.
With the depreciation, Newsonline Nigeria reports that the gap between the official and parallel market exchange rates of the naira to dollar continued to widen amid increased demand for the greenback.
At the official market, the naira gained against the dollar to close at N434.8088 on Friday after it traded at N435.0274 on Thursday, according to details on FMDQ OTC Securities Exchange — a platform that oversees official FX trading in Nigeria.
Meanwhile, Newsonline Nigeria reports that this is coming months after the Central Bank of Nigeria (CBN) had on July 27, 2021, suspended foreign exchange (forex) sales to BDC operators and directed all those with a genuine need for forex to revert to banks. The naira lost value at a whooping N85 to the dollar in less than two months from N490/$1 to N575/$1 on September 20, 2021, after the decision by the Godwin Emefiele-led CBN.
Even though the dollar to naira traded at the parallel market (black market) at ₦745 per $1, Newsone reports that the Central Bank of Nigeria (CBN) does not recognise the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.
Godwin Emefiele, the governor of the Central Bank of Nigeria, CBN, said the black market traders turned away from their objectives to become money laundering agents.
The CBN has also consistently maintained that the parallel market represented less than one percent of FX transactions and should never be used to determine Nigeria’s naira/dollar exchange rate. The apex bank later commissioned deposit money banks to cover the expected demand from the public.
Disclaimer: NEWSONLINE NIGERIA does not set or determine forex rates. The official NAFEX rates are obtained from the website of the FMDQOTC. Parallel market rates (black market rates) are obtained from various sources including online media outlets. The rates you buy or sell forex may be different from what is captured in this article.