Dollar To Naira Exchange Rate: Dollar Rate Falls In Black Market After Independence Day

August 4, 2022 Dollar Rates Update: The cost of buying the United States dollar was down on Tuesday in the black market after the Independence Day holiday on Monday, but the scarcity of the American currency continues to fuel the value above N700, resulting to the naira maintaining its weak state.

Black market traders dropped their asking price to sell one dollar to N740. However, during the previous day, the foreign currency sold as high as N745/$1 in the parallel market. 

The Bureau De Change operators are overwhelmed with demands for the dollars, as limited access to the foreign exchange at the official exchange market has compounded the scarcity. 

Prime Business Africa had disclosed that the Central Bank of Nigeria (CBN) had tightened access to the foreign currency due to its limited availability. As of September 29, 2022, Nigeria’s foreign reserves fell to $38.318 billion from the $40.520 billion recorded as at December 31, 2021. 

Lack of foreign exchange had also resulted to banks reducing international spend of their customers. It had also affected foreign airlines operating in Nigeria, as they couldn’t repatriate their ticket revenue. 

Nigeria’s foreign reserves is dropping because the oil sector had contracted in the first and second quarters, with the country unable to profit from the boom in the crude oil price late last year and earlier this year. 

Meanwhile, recall that the naira had traded at the official market, Investors and Exporters window, on Friday, at N437.03/$1.