Naira continues unprecedented fall, hits N550/$1 at black market

 Naira continues unprecedented fall, hits N550/$1 at black market

The exchange rate between the naira and the US dollar closed at N412.75/$1, at the official Investors and Exporters window.

Naira depreciated further against the US dollar on Monday, to close at N412.75/$1 as against the N412/$1 recorded at the close of trade on Friday, 10th September 2021, representing a 0.18% drop.

The exchange rate at the parallel market hit a new all-time low on Monday to close at N550/$1 compared to N545/$1 recorded in the previous trading session. This represents a 0.92% depreciation and further widens the gap between the black market rate and the official rate.

The local currency continues its unprecedented fall at the black market following CBN’s actions to channel forex demand away from the window and buyers scramble to buy the scarce dollars.

Currency speculators are taking advantage of the huge exchange rate difference between the official market and the black market.

The slump at the black market comes on the heels of increased forex demand pressure and a sharp decline in dollar supply.

ndividuals and businesses have to rely on the black market for their foreign exchange requirements because the banks appear to be rationing dollars. The apex bank’s plan to curtail the illegal market by banning sales to money traders and reprimanding people who profit from the arbitrage seems not to be working and dealers are speculating the currency will weaken further.

The Central Bank of Nigeria had earlier stated that it is closely monitoring the forex transactions of banks operating in the country and warned them against all forms of malpractices threatening that those found culpable would have their foreign exchange operating licenses suspended for at least a year.

Trading at the official NAFEX window

The exchange rate depreciated against the US dollar on Monday 13th September 2021 to close at N412.75 to a dollar, representing a 75 kobo drop compared to N412/$1 recorded in the previous trading day.

The opening indicative rate closed at N412.46/$1 on Monday, 13th September 2021, a N1.21 gain when compared to N411.25/$1 recorded on Friday, 10th September 2021.

Ayomide Oyewole

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