Fakoyejo Olalekan
August 5, 2022 Dollar Rates Update: The naira and dollar exchange rate depreciated in favour of the Nigerian currency on Wednesday at the black market. The traders in the parallel market dropped their asking price by N10.
Bureau De Change operators sold the American greenback at N730/$1 earlier today, below the N730 exchange rate that buyers purchased the dollar during the previous day’s trading.
Join our WhatsApp ChannelThis indicates that the naira gained ground against the United States currency, appreciating in value by 1.35 per cent. Although, scarcity of the foreign currency remains in the black market.
Prime Business Africa understands that the naira to dollar exchange rate has remained above N700 due to the inability of buyers to obtain the dollar in the official exchange market.
Central Bank of Nigeria (CBN) decision to tighten access to foreign exchange in the official market has redirected forex demand to the parallel market.
This has increased the value of dollar in the black market by 29.20 per cent in the last 10 months. This means the naira has devalued by N165, from N565/$1 in January to N730 as at October 5.
Despite Nigerians now taking their demands for forex to the black market, the central bank has ignored the Bureau De Change request to lift the ban and sell them foreign exchange to help reduce the pressure on naira.
Meanwhile, the naira depreciated to N437.25/$1 on Tuesday at the Investors and Exporters window, which is the official foreign exchange market in Nigeria. The cost of dollar increased slightly from the N437.03 one dollar sold for last Friday.
