Dollar Rate: Gap Between Official, Black Markets Rises To 61.3%

The dollar rate rose in the Bureau De Change window of the black market on Tuesday, 24 January 2023, as the naira weakened by -1.07 per cent.

It was learnt that the cost to buy one dollar increased to an average of N753, as Bureau De Cange operators added N8 to their asking price when compared to the N745 the United States currency was sold on Monday, 23 January 2023. 

The dollar rate at the black market maintained its premium price, which is N291 above the exchange rate in the official channel. 

This means the gap between the Bureau De Change operators’ asking price is 61.3 per cent above the official exchange rate which closed Monday’s trading with N461.63/$1.

According to data from the FMDQ Exchange, which tracks the exchange rate between the naira and the dollar, it was learnt that the rate appreciated by 0.03 per cent.

At the end of the trading session, the dollar rate rose to N461.63/$1 in the Investors’ and Exporters’ window of the official market, as traders hiked cost by N0.13 kobo on the back of increased demand. 

Note that last week Friday, traders in the Investors and Exporters window traded the foreign currency at N461.5 kobo for one dollar. 

Meanwhile, trading in the Central Bank of Nigeria (CBN) backed channel ended with traders transacting $132.77 million on Monday, 

A review of the multiple exchange market reflects the naira performed poorly to the dollar, which is a global benchmark to weigh the value of a country’s currency. 

It indicates that supply was increased by 37.14 per cent when the $132.77 million is compared to the $96.81 million worth of foreign exchange transacted during Friday’s session. 

Also, the country’s external reserves dropped slightly to $37.19 billion on Friday, from the $37.20 billion it closed the trading session a day before.