BREAKING: Naira Suffers Massive Depreciation Against Dollar

Naira has suffered a massive depreciation against the dollar, see the new exchange rate.

 

Newsonline reports that Nigeria’s official currency, the Naira has suffered further depreciation at the parallel market, currently trading for N750 against the dollar, according to black market platform Aboki Forex.

The current parallel market exchange rate was monitored by Newsonline Nigeria Friday Morning in Lagos.

ALSO: CBN, AMCON Announce Sale Of Polaris Bank

 

According to Newsonline report in September,  the naira had hit a record high, trading at N719 against the dollar. Since then, the dollar has continued to rise, exchanging at a higher rate.

 

Recall that in 2021, the apex bank prohibited the sale of foreign exchange to BDC operators in a bid to arrest the fast fall of the country’s currency. The apex bank had accused the BDCs of unauthorised sales of foreign exchange above the market they were authorised to serve.

 

Newsonline understands that the BDC operators were a significant part of the black market before the ban, helping people who couldn’t legally access foreign currencies directly from the CBN to maintain their exchange rates.

 

Newsonline reported that the inability of BDC operators to obtain foreign currency from the CBN could have a significant negative effect on the economy of the nation by increasing pressure on the local currency.

 

The currency exchange rate was approximately N501 to a dollar when CBN Governor Godwin Emefiele forbade the sale of foreign exchange to BDC. The value of the naira, however, fell to N670 per dollar a year after the ban.

 

The apex bank threatened to detain and prosecute Nigerians who used naira to buy dollars in an effort to further restrict the flow of foreign exchange at the black market.

Godwin Emefiele, the head of the central bank has drawn criticism for failing to implement measures that would have helped stabilise the value of the nation’s currency on the foreign exchange market.