Gap Between Black Market, Official Window Dollar Rates Now N275.33

The gap between the foreign exchange rates for the Naira and the Dollar in the black market and the official window stood at N275.33 kobo on Tuesday, 16 May.

Prime Business Africa gathered that the Dollar exchanged at N740/$1 in the black market, according to two Bureau De Change operators.

Note that on Monday, the gap between the Dollar rate in the official and black markets was N287.67, having exchanged for N750/$1 in the latter, but closed at N462.33 in the former.

Tuesday’s rate remains a premium when the N740/$1 parallel rate is compared to the N464.67 kobo/$1 that both currencies exchanged for on the same day in the official market recognised by the Central Bank of Nigeria (CBN).

Recall that the Naira to Dollar exchange rate was N464/$1 at the close of trading in the official market on Monday,15 May. 

According to data obtained from the FMDQ Exchange, the value of the Dollar sold to traders went up by N0.67 kobo, while the Naira depreciated by –0.14 per cent.

Despite the rise in the cost of the Dollar, over $127.72 million in foreign exchange was transacted by investors and exporters in the official window. 

The day before, investors and exporters had traded $55.10 million in foreign exchange. This is $72.62 million or 131.7 per cent increase in supply. 

Prime Business Africa understands that the increase doesn’t signify the availability of foreign exchange, considering the President of the Association of Corporate Treasurers, Yinka Ogunnubi, complained that its members have been struggling to obtain forex. 

Ogunnubi asked for the government’s intervention to resolve the forex situation: “For our members and, of course, you know we are a treasurer organisation, most of our challenges have to do with the forex situation because there is acute forex scarcity and our members are not able to access forex easily. 

“So, we need the Nigerian Government to solve the policy problems, because that is where the solution is because if they address the policy problems, it will be easier for us to get trade financing, easier for us to pay our taxes and continue business.”