Black Market, Official Dollar Rates Fall, Tinubu Defends Naira Devaluation

The official foreign exchange authorised dealers dropped the price of the dollar by N18.82 kobo at the close of trading on Monday.

According to the FMDQ Exchange, the official naira to dollar rate closed down at N756.94/$1, in contrast to the N775.76/$1 rate reported last week Friday. 

This was after both currencies traded at a high of N830/$1 and a low rate of N651/$1 in the investors’ and exporters’ window of the official market. 

Furthermore, over $67.21 million in foreign exchange was transacted in the investors’ and exporters’ window, surpassing Friday’s $54.18 million. 

Authorised dealers and their clients increased the worth of forex traded by $13.03 million or 24.04 per cent based on the data obtained from FMDQ.

Also, on Monday, the dollar was sold in the black market at an average rate of N862.3/$1, with the naira appreciating slightly from N863.8/$1. 

Similarly, the average naira to euro rate was N963.6/€1. The price of the European currency increased by N4.1 kobo from N959.5/€1 rate. 

Although, the pound didn’t share the same fate, as the British currency appreciated by N5.1 kobo, from N1119.2/£1 to N1124.3/£1. 

Meanwhile, President Bola Tinubu defended his decision to collapse the multiple exchange rates in the official market, stating that it was necessary to save the country from losing money to forex speculators. 

“Also, the multiple exchange rate system that had been established became nothing but a highway of currency speculation. 

“It diverted money that should have been used to create jobs, build factories and businesses for millions of people. Our national wealth was doled on favourable terms to a handful of people who have been made filthy rich simply by moving money from one hand to another. This too was extremely unfair. 

“It also compounded the threat that the illicit and mass accumulation of money posed to the future of our democratic system and its economy. 

“I had promised to reform the economy for the long-term good by fighting the major imbalances that had plagued our economy. Ending the subsidy and the preferential exchange rate system were key to this fight. This fight is to define the fate and future of our nation. Much is in the balance,” Tinubu said on Monday.