Dollar To Naira Exchange Rate: Dollar Gets New Rate, As Demand Overwhelms Black Market, I&E

October 14, 2022 Dollar Rates Update: The cost of buying one dollar at the black market depreciated to N731/$1 on Friday, as the Bureau De Change operators dropped their asking price earlier today. 

This indicates Naira appreciated against the United States currency during trading, when compared to the N732/$1 it exchanged for at the parallel market a day before. 

At the official foreign exchange market, the cost of dollar rose to N441.83/$1 on Thursday, as naira depreciated from the N440.6/$1 reported on the Investors and Exchange window on Wednesday. 

During trading on the official foreign exchange market, it was gathered that a total of $64.8 million was traded on Thursday, down from the $95.39 million recorded during the previous session. 

The exchange rate between the dollar and the naira has continued to fluctuate across the black market and that of the official market due to scarcity of forex amid high demands. 

Nigeria’s central bank has been intervening in the dollar shortage, occasionally disbursing forex into the official forex market, while leaving the Bureau De Change operators to sort dollars for the black market. 

CBN had disbursed $7.6 billion into the Nigerian economy in five months to help with the scarcity of dollars which is caused by low remittance from the Nigerian National Petroleum Company (NNPC) Limited and the oil industry, which accounts for 90% of Nigeria’s forex. 

The financial regulator had stated in a report that, “Total foreign exchange sales to authorised dealers by the bank were $1.18 billion, a decrease of 24.4 percent below $1.56 billion in April.” 

CBN’s report added, “A breakdown shows that foreign exchange sales at the Investors and Exporters and interbank/invisible windows decreased by 37.9 per cent and 0.7 per cent to $0.16 billion percent, below their respective levels in the preceding month. 

“Similarly, SMIS and matured swap contracts fell by 7.0 percent and 71.4 percent to $0.64 billion and $0.10 billion, respectively, compared to the amounts in April. However, foreign exchange sales at the Small and Medium Enterprises window rose 8.4 percent to $0.12 billion in the review period.”