Black Market Increases Dollar Rate Amid Probe Of CBN’s Cash Withdrawal Policy

The FMDQ Securities Exchange has revealed that the dollar rate in the Investors and Exporters (I&E) window of the official market rose 0.09 per cent.

Prime Business Africa gathered from FMDQ Securities foreign exchange data that the rise represents N0.38 kobo, as the dollar rate went up from N446.00/$1 on Monday, to N446.38/$1 on Tuesday.

As the dollar rate rises, the value of foreign exchange traded on the official market dropped to $72.15 million on December 13, down from the previous day’s $78.08 million.

Also, the exchange rate between the Pound Sterling and naira increased to N548.17/£1, which is N1.18 kobo higher than the N546.99/£1 rate they both traded for on Monday.

However, the story was different with the exchange rate of the Euro, as the naira appreciated by N7.79 kobo in value to N469.91/€1 on Tuesday, from N477.70/€1 recorded during the previous trading day.

In the black market, the Nigerian currency failed to sustain its appreciation against the United States dollar, as it depreciated by –0.27 per cent.

The exchange rate between both currencies showed that the dollar rate rose to N742/$1 in the Bureau De Change window of the parallel market on Tuesday, up from N740/$1 during Monday’s business hour. 

Naira’s depreciation against the dollar in the official and black market comes at a period the Senate questioned two Central Bank of Nigeria (CBN) deputy governor, Aishah Ahmed and Edward Adamu, over the cash withdrawal policy.

The foreign exchange markets have been reacting negatively to the new cash withdrawal policy of the central bank, and the Senate plans to deliberate on the impact on Nigerians on Wednesday. 

A member of the committee on Banking and Financial Institutions, Senator Olubunmi Adetunmbi, “This meeting took place on Thursday last week, the two candidates came for clearance, and the issues were thoroughly asked. 

“Especially in the open address by the chairman, he specifically reported the request that the two deputy governors currently serving and seeking the appointment should elaborate and explain the rationale behind this policy in view of the massive public reactions to that policy.”