Naira Gains Massively As Dollar Crashes At Black Market
With the dollar’s depreciation on the black market, the Naira has risen dramatically.
Touchaheart Nigeria reports that the American legal currency, the dollar, fell at the parallel market, also known as the black market, on Monday, November 1, trading at 565 per dollar, with Bureau De Change (BDC) operators buying for 555 per dollar as of 9:15 a.m. in the Lagos market.
IMPORTANT NOTE: The exchange rate fluctuates hourly, depending on the amount of dollars available and the Demands. What this means is that at $565, you can buy or sell a dollar, and the price can fluctuate (high or low) within hours.
While BDC operators known as Abokis in the parallel market (black market) bought dollar at 555 per dollar and sold at 565 per dollar on Monday morning, the official market exchange rate between the Naira and the US dollar, according to data posted on the FMDQ Security Exchange where forex is officially traded, showed that the naira opened at 555 per dollar and closed at 565 per dollar. This represents a decrease of -0.09%.
How much is exchange rate of Dollar to Naira in Black Market today?: Lagos parallel market (black market dollar exchange rate today)
TOUCHAHEART NIGERIA reported that the players bought a dollar for 555.00 and sold it for 565.00 in the black market on Monday morning, November 1, 2021, after buying N560 and selling N569 last Friday, October 29, 2021.
The Central Bank of Nigeria (CBN) does not recognize the parallel market, also known as the black market, despite the fact that the dollar to naira opened in the parallel market at 565 for $1 today.
As a result, anyone in need of currency should contact their bank, with the I&E window being the sole known exchange, according to the apex bank. Meanwhile, today’s dollar to naira exchange rate comes after Nigeria’s Vice President, Prof. Yemi Osinbajo, last month called on 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
