The cost of exchanging naira to dollar increased on Thursday in the black market, as the value of the Naira continues to move in different paths across the peer-to-peer segment and the official foreign exchange market.
Earlier today, Nigerians using the parallel market for forex transaction, had to part with ₦604 to receive $1. This means naira weakened by -0.66% in the last 24hours, having traded at ₦600 to $1 the previous day.
Naira has struggled to gain grounds against the United States dollar in the black market since the Central Bank of Nigeria (CBN) suspended sale of foreign currencies to Bureau de Change (BDC) operators, and restricted licence application for BDC operations in July 29, 2021.
The decision of the banking services regulator has caused dollar scarcity in the peer-to-peer market, resulting in demand for forex surpassing availability. This has further strengthened the dollar against the Nigerian currency.
With the Central Bank being unable to unify the black market and official market rates, which is the Investors and Exporters window (I&E), the I&E windows have been reporting a different rate for the regulated market.
On Wednesday, report from the Investors and Exporters window disclosed that the naira fell to the dollar, depreciating by -0.18% in the official trading, less than the dip recorded in the unofficial market.
FMDQ, which houses the I&E window, showed the naira closed weaker at ₦419, against its opening of ₦418.21. Although, during the day, it was gathered that a dollar sold at a high of ₦444, and a low of ₦410/$1, before settling at ₦419.
Before the close of the official market, over $171.98 million was traded in the Investors and Exporters window to meet the demand for dollars to trade within and outside Nigeria.