Naira started December with a slide against dollar at parallel market.
Newsonline reports that Nigerian official currency, naira, has crashed against the American official currency, dollar, at the parallel market also known as the black market on Thursday, December 3, trading at ₦565 per a dollar with Bureau De Change (BDC) operators buying at at ₦560 per a dollar as at 9:15 am in the Lagos market.
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IMPORTANT NOTE: Please note that the exchange rate changes hourly.… it depends on the volume of dollars available and the Demands. What it means is that...you can buy or sell 1 dollar at ₦565 and the price can change (high or low ) within hours.
Newsonline reports that while BDC operators popularly known as Abokis in the parallel market (black market), bought dollar at ₦560 per a dollar and sold at ₦565 per a dollar on Thursday morning, at the official market, the exchange rate between the Naira and the US dollar according to the data posted on the FMDQ Security Exchange where forex is officially traded showed that the naira opened at ₦413.94 on Thursday morning and closed ₦414.80. This represents a change of -0.06%.
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After enjoying a massive rise in November were it traded at N530 per dollar at some point, the naira has plunged to N560 per dollar, quashing the hopes of speculators.
Newsonline Nigeria reports that while the speculators were hoping to see a further crash of dollars to naira following the steady rise of the Naira late November, the reverse is the case as the naira trades at N565/$1 at the parallel market otherwise known as the black market as against the N557 it traded November 29 and N530/$1 it traded weeks ago. This shows that the Naira lost N30 between November 11 when dollar naira traded N535/$1 and December 2 that naira to dollar opened at N565/$1.
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Even though the dollar to naira opened in the parallel market at ₦565 per $1 today, Newsonline 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.
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 selling 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.”
