Fakoyejo OlalekanJuly 26, 2022 Dollar Rate Update: The naira remains weak against the United States currency, dollar, as scarcity overwhelms the official foreign exchange market, Investors & Exchange window, as well as the black market on Tuesday.
Bureau De Change operators raised the rate of $1 to a range between N670 and N685, due to demand pressure that has made the US greenback more valuable than the Nigerian currency.
The traders increased the dollar and naira exchange rate as high as 3%, having sold the former at a cost of N665 during the previous session of the parallel market. On Friday, $1 had traded at N654, and the growth in price indicates the rate is heading for N700, As its now just 2.1% shy of the mark.
Prime Business Africa understands that the Naira is not only depreciating in the black market, as high demands and scarcity mix has forced traders on the Investors & Exporters window to also increase their asking price for dollar.
At the end of Tuesday’s session, one dollar on the official foreign exchange market went for N431, against its opening price of N427.30. This means the value of the US currency rose by 0.8% after the close of business.
The demand pressure for dollar is hiking the value of the United States greenback, as there isn’t enough dollar to go round, considering $58.03 million was transacted on Tuesday, below Monday’s $89.79 million.
With the dollar projected to hit N700 in the black market in the second half, its still unclear if the Central Bank of Nigeria (CBN) will intervene by lifting the ban placed on Bank forex sales to the BDC operators, as the latter have requested for it.
Although, the World Bank has warned CBN against continous intervention in the forex market, stating that the financial regulator should allow the forex to reflect market realities.
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