Dollar To Naira Exchange Rate: Bureau De Change Operators Increase Dollar Rate, Take Advantage Of Eid-el-Kabir Holiday

July 12, 2022 Dollar Rate Update: The naira depreciated on Tuesday at the black market, as the Bureau De Change operators increased their exchange rate for dollar, after close of official market diverted demand to the parallel sector.

Nigeria’s official market, the Investors and Exporters window, had closed to the public due to the public holidays to celebrate the Muslim festive period, Eid-el-Kabir, on Monday and Tuesday.

This reduced the channel to source for dollar down to the black market, where naira lost -0.16% value on Tuesday, having exchanged for $1 at N617, in contrast to the N616/$1 rate reported during the last session.

The hike in the value of the United States currency had been driven by increased demands on the streets where black market forex trades occur. Before the public holiday, the official market closed Friday with N427.75 kobo exchange rate, as the naira appreciated against the dollar which had traded for N428.16/$1 on Thursday.

Prime Business Africa gathered that the depreciation of the Nigerian legal tender spilled over into the peer-to-peer market, with the naira falling -0.32% to sell at N623/$1. The asking price to exchange one dollar was up by N2, considering the US currency had traded at N621 to naira the previous session.

With the Investors and Exporters window resuming trading on Wednesday, demands will flow into the official market, easing pressure on dollar in the black market for the remaining days of the week.

However, with the Central Bank of Nigeria’s (CBN) bottleneck still limiting forex access to few businesses, the resumption of the I&E window will have little or no impact on the exchange rate across the multiple foreign exchange markets.