Fakoyejo OlalekanThe Bureau De Change window of the black market kept the exchange rate of the naira to dollar below N750 on Tuesday, January 3, 2023.
After a one-day public holiday to celebrate the New Year, the dollar rate maintained a level between N735/$1-N745/$1, according to Bureau De Change operators that spoke to Prime Business Africa.
Despite the black market rate holding about N200 price difference when compared to the official market, the BDC operators said the dollar rate has dropped.
The Bureau De Change operators told this publication that they buy the dollar from the public, which has become their major source to grow their United States currency reserves, at the rate of N730-N740.
Meanwhile, the dollar rate closed at N461.5/$1 at the Investors and Exporters window of the official market on Friday, December 30, 2022.
Last week Friday was the last period FMDQ Exchange tracked the rate in the official channel backed by the Central Bank of Nigeria (CBN).
Note that while the N283 rate difference is meant to push persons in need of foreign exchange to the official market, the black market is also overwhelmed with demands.
Both channels are struggling to meet demands due to shortage of foreign exchange. Prime Business Africa had reported earlier that Nigeria’s foreign reserves dropped by -8.46 per cent within 12 months last year.
The external reserves fell from the $40.52 billion reported at the end of December 31, 2021, to $37.09 billion at the end of December 29, 2022.
According to a member of the Monetary Policy Committee (CBN) of the central bank, Robert Asogwa, in November last year, the drop in external reserves is linked to the decline in oil exports even at a time of higher oil prices.
Although he projected that the external reserves would grow this year, giving way to the possibility that the naira will gain more ground against the dollar, crashing the exchange rate in 2023.
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