BREAKING: Naira Gains Massively At Black Market, See Today’s Exchange Rate
Today, October 25, 2021, the Naira has risen dramatically on the illegal market.
Touchaheart reports Nigeria’s official currency, the Naira, increased on the parallel market, often known as the black market, on Monday, October 25, trading at 570 per dollar.
The enormous rise comes after the Naira ended at 570 per dollar last Friday, October 22, 2021, according to this internet news platform. Also, according to Touchaheart, the Naira strengthened today, Monday, October 25, 2021, hitting 414.05 per dollar, after closing at 415.07 per $1 on Friday, October 22, 2021, at the Nigerian autonomous foreign exchange (NAFEX) rate – the default FX reference for official and lawful transactions.
On the official market, the local currency stayed unchanged as dollar supply increased by 134 percent. Meanwhile, the International Monetary Fund (IMF) has linked the drop in diaspora remittances to the country’s foreign exchange market volatility. Nigeria’s foreign reserve was at $40 at the end of the day. On Wednesday, October 20th, 2021, the reserve position increased by $377.04 million to $76 billion. On Wednesday, the country’s foreign reserve grew by 0.93 percent to $40.39 billion, up from $40.39 billion the day before.
Meanwhile, according to Touchaheart Nigeria, the development comes a week after Nigeria’s Vice President, Prof. Yemi Osinbajo, urged the Central Bank of Nigeria (CBN), led by Godwin Emefiele, to allow the naira to reflect market realities.
According to the Vice President, the exchange rate is artificially low, discouraging foreign investors from pouring money into the country.
“Prof. Osinbajo is not calling for the devaluation of the Naira. He has at all times argued against a willy-nilly devaluation of the Naira,” Laolu Akande, spokesperson to Vice-President had explained in a statement.
“For context, the Vice-President’s point was that currently the Naira exchange rate benefits only those who are able to obtain the dollar at N410, some of who simply turn round and sell to the parallel market at N570.
“It is stopping this huge arbitrage of over N160 per dollar that the Vice-President was talking about. Such a massive difference discourages doing proper business, when selling the dollar can bring in 40% profit!
“This was why the Vice-President called for measures that would increase the supply of foreign exchange in the market rather than simply managing demand, which opens up irresistible opportunities for arbitrage and corruption.
“It is a well-known fact that foreign investors and exporters have been complaining that they could not bring foreign exchange in at N410 and then have to purchase foreign exchange in the parallel market at N570 to meet their various needs on account of unavailability of foreign exchange.”