Dollar To Naira Exchange Rate: Dollar Rate Hit N790, As BDC Operators Profit From CBN’s Policy

The exchange rate between the naira and the United States dollar (USD) went haywire in the black market on Friday evening.

Bureau De Change operators profited from the recent announcement made by the Central Bank of Nigeria (CBN) that redesigned naira notes will be released on December 15, 2022.

Since the decision was made on Wednesday, demands for the dollar has skyrocketed, causing the Bureau De Change operators to charge for N790 per dollar this evening, Prime Business Africa heard.

This is N15 higher than the dollar was sold on Friday morning, and also N30 difference when compared to the parallel market’s asking price of N760 on Thursday.

PBA had exclusively reported that dollar could hit N1000 by December, with the naira showing no sign of fighting off pressure from USD, as CBN policies continue to act against the Nigerian currency.

The President of Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, had also complained about the CBN policies under Godwin Emefiele, stating it does no good for both the exchange rates in the official and black market.

“The foreign exchange policy of the Central Bank of Nigeria (CBN) has adversely impacted the naira stability across all markets and created a huge premium between official and parallel market rates.” Gwadabe said.

He also predicted that the value of dollar will remain out of control, rising to unprecedented high, “I am not a prophet of doom and student of continuing naira depreciation but except fundamental goodwill and courage are demonstrated, the naira will continue to suffer loss in exchange for the greenbacks.”

Note that on Thursday, the naira traded for N444.5 in the official market of the Investors and Exporters window, rising from N441.67/$1 reported on Wednesday.

In the official market, demand for dollar is also high, overshooting supply.

A big aviator who lamented the scarcity said he got only $50,000 when he applied for $500,000. Prime Business Africa understands hawks are mopping up dollars on the back of CBN naira redesign policy and other issues.

Meanwhile, the high demand for dollars might be stepped down in the black market, as the Finance Minister, Zainab Ahmed, disagrees with the decision of Emefiele to release redesigned naira notes.

She also pointed out that releasing such will have adverse effect on naira, resulting to an increase in the cost of procuring foreign currencies like the dollar.

With Ahmed stating that the finance ministry didn’t approve of the CBN decision, the redesigned naira notes might not be released, prompting persons with illicit naira notes not to dump the Nigerian currency for dollar out of fear in the black market.