Black Market Dollar To Naira Exchange Rate: BDC Operators Drop Dollar Rate After Sending Message To CBN

August 2, 2022 Dollar Rate Update: Bureau De Change (BDC) operators reduced their asking price for sale of dollar on Tuesday, showing sign of rise in availability of the United States currency in the black market.

At the end of business hour, the currency traders in the parallel market sold the American greenback for N665/$1, indicating the naira appreciated by 3.62% against the dollar.

The BDC operators had exchanged both currencies at the rate of N690 on Monday. The naira had previously crossed the N700/$1 mark, closing trading last week at N710.

Similarly, the official foreign exchange market, Investors and Exporters window, had also recorded 0.03% appreciation in naira’s value on Monday, after traders on the Platform demanded for N428.88 for one dollar.

What you need to know

Due to limited dollar at the black market, the naira had come under intense pressure after demand overshoot supply, leading to the Bureau De Change operators to urge the Central Bank of Nigeria (CBN) to provide the parallel market with forex to meet customers request.

This was part of the solutions the president of Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, suggested to the central bank.

Prime Business Africa had reported that Gwadabe advised the financial regulator to intervene in the scarcity of forex, as well as abolish the fixed exchange rate, by allowing the market forces determine the real price of the forex rate.

Note that the black market exchange rate is often considered as the true value of currencies, as its determined by buyers and sellers, while the official exchange rate is influenced or somewhat controlled by the central bank.