BREAKING: Naira Gains Massively As Dollar Falls Freely, See New Exchange Rate
The black market value of the naira has soared as the dollar continues to plummet.
Touchaheart Nigeria correspondents, the official currency of the United States of America, the dollar, crashed at the parallel market, also known as the black market, on Wednesday, November 10, 2021, trading at 550 per dollar with Bureau De Change (BDC) operators buying at 545 per dollar in the Lagos market.
The dollar to naira exchange rate in the Lagos market on Tuesday saw BDC operators buying at 545 and selling at 550, compared to the 565 and 570 per dollar they bought and sold in recent times.
BDC Operators lament dollar crash against naira…
Touchaheart Nigeria reports that the US dollar’s downfall against Nigeria’s official currency, the naira, on Tuesday was a source of anxiety for BDC operators, who bemoaned the unexpected drop in the dollar to naira exchange rate market.
One of the BDC owners who spoke to Touchaheart Nigeria on Tuesday evening expressed displeasure that the market is no longer profitable as it once was, blaming the CBN vs Aboki FX drama.
“Since Aboki FX stopped publishing rates, we are a bit confused. Before, we check Aboki FX in the morning before we trade but now we have to call our brothers (other BDC operators in different locations) before we know what to buy and sell. This is not good”, he lamented.
Another disgruntled BDC operator told Touchaheart Nigeria reporter that: “Dollar crashed to ₦550 this evening, though in the morning it was ₦560“, he said after which he lamented in pidgin English, saying: “Di way dis dollar dey fall no good, business just spoil. I pray say e go rise tomorrow (referring to yesterday, November 10).
While the majority of the operators expressed disappointment, one BDC operator expressed optimism that the dollar would rise again before or during the holiday season.
“Before December we will see a rise, it might go back to ₦560 per dollar because many people will be looking for dollars.
VP Osinbajo’s advice to CBN over dollar to naira exchange rate…
Meanwhile, according to Touchaheart Nigeria, today’s dollar-to-naira exchange rate comes after Nigeria’s Vice President, Prof. Yemi Osinbajo, called on the Central Bank of Nigeria (CBN), led by Godwin Emefiele, last month 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 sell ing 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.”