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Tuesday, August 9, 2022

Naira Crashes to N710 per Dollar in Black Market

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The naira has crashed further in the parallel market, trading for N710 against the U.S. dollar.

The national currency, which traded for N670 against the dollar on Monday, has fallen even further by 6.7 percent in two days as of Wednesday afternoon.

The record fall comes a year after the Central Bank of Nigeria (CBN) prohibited the sale of foreign currency to bureau de change operators.

Read Also…https://moneycentral.com.ng/exclusive/article/like-tail-wagging-dog-bdcs-proliferation-set-stage-for-naira-chaos/

The apex bank had previously prohibited the sale of foreign exchange to BDC operators due to their unauthorized sales of foreign exchange above the market they were authorized to serve.

Prior to the ban, BDC operators were a major market for FX, providing exchange rate support to those who could not formally access foreign currencies directly from the CBN.

When CBN Governor Godwin Emefiele banned the sale of forex to BDC, the exchange rate was around N501 to a dollar. However, a year after the ban, the value of the naira plummeted to N710 to a dollar.

However, Mr Emefiele has been criticised for failing to initiate policies that will help stabilize the country’s currency value in the forex market.

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