Fakoyejo OlalekanThe exchange rate between the dollar and naira continues to sell above N700 in the black market, as demands for foreign exchange switched to the parallel market due to the Christmas holiday in the official market.
Amid the yuletide period, the black market stayed open to meet demands for traders and individuals willing to pay a premium to obtain the United States dollar (USD) on Wednesday.
According to some Bureau De Change operators who spoke to Prime Business Africa (PBA) in Lagos, the dollar is sold between N745 to N750 to those who are not willing to go through the procedure to obtain USD in the official market.
While the Bureau De Change operators sold a dollar at the exchange rate of N745 to N750, they told PBA that they are willing to buy the American greenback at a lower rate.
This publication gathered that traders and individuals with dollars they plan to offload can get between N725/$1 to N730/$1 rate in the black market.
What you need to know
Recall that the Central Bank of Nigeria (CBN) had disclosed that some traders obtain foreign exchange to transact business outside Africa, but hoard the proceeds from the transaction.
According to the World Bank, some of the foreign exchange disbursed in the Investors and Exporters (I&E) window of the official market finds its way into the black market due to the incentive.
Note that Prime Business Africa had reported that persons who buy dollars from the official market and sell at the black market often make a whopping sum due to the significant difference in the exchange rate.
While the exchange rate for selling to the Bureau De Change operators is above N700, the highest rate to buy the same US currency in the official market is N456.50/$1 according to the FMDQ Securities.
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