Black Market Dollar To Naira Exchange Rate: Bureau De Change Operators Raise Dollar Rate After Advice To CBN

August 8, 2022 Dollar Rate Update: On the Investors and Exporters window, the naira closed flat at N430 to one dollar on Friday, maintaining the same selling price traders offered the United States currency during the previous day.

The Nigerian currency stabilised despite a decline in foreign exchange trade, which fell by -34.7%, representing a reduction of $38.30 million. This indicates the demand level had little or no impact on the value of naira.

During trading on Friday, over $71.92 million was supplied by traders on the Investors and Exporters window, in contrast to the $110.22 million exchanged a day before on the official foreign exchange market.

Unfortunately, the naira wasn’t so lucky in the black market, as Bureau De Change operators increased their asking price to N645 to one dollar, adding N7 to the N638 the American greenback was sold for during the previous session.

However, the naira took on some gains in the peer-to-peer market, with buyers parting with N669/$1, which is N2 lower when compared to the N671/$1 they paid to obtain a day before.

With the naira struggling to keep a bull run in the parallel market, the suggestion of the President of Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, is that the Central Bank of Nigeria (CBN) put an end to fixed rate in the official foreign exchange market.

Gwadabe said, “It might sound counterintuitive, but the way out of the current frenzy is to abolish the official fixed exchange rate and allow the Naira to float. CBN should contemporaneously undertake a large-scale dollar intervention in the open market that can inspire confidence in the Naira and checkmate the current tailspin.

“Once there is a significant positive movement, the market will react and, in all probability, spur an avalanche of panic selling and further buoy the Naira.” Gwadabe said.