Naira Gains A Record N25 At Black Market
Naira has launched a sustained recovery at the parallel market, gaining N25 since it fell to its lowest of N575 to a dollar on September 20, 2021
Touchaheart Nigeria reports that a survey at the Bureau De Change (BDC) market in Wuse Zone 4, Abuja at the weekend showed that the Naira exchanged for N540/$1.
The Central Bank of Nigeria (CBN) on July 27, suspended foreign exchange (forex) sales to BDC operators and directed all those with a genuine need for forex to revert to banks. The naira lost value at a whooping N85 to the dollar in less than two months from N490/$1 to N575/$1 on September 20.
Analysts had reacted differently to this as some supported the move while others said otherwise.
CBN has also insisted that the rate in the unrecognised parallel market was not the reference rate of the Naira, adding that the true value of the currency was quoted at the Import and Export (I&E) trading window and as of November 10, the Naira traded at N414.73/$1.
Touchaheart Nigeria reports that a BDC operator, Alhaji Nura, said the demand for the dollar has been low lately.
“I don’t know why really. But I have so many dollars without significant buyers,” he said, adding that the Naira gain is daily.
Commenting, the Lead Economist and Enterprise Partner at SPM Professionals, Mr. Paul Alaje, said he was excited that the Naira is gaining value at the black market.
Dollar To Naira Exchange Rate Today 14th November 2021
“I strongly believe that before the end of the year, we should see maybe a stronger Naira, perhaps around N500/$1 at the parallel market and the official rate around N420/$1,” he said.
“There is no reason for the CBN to devalue the Naira at this time,” he continued, “since it will fuel speculations again and put the Naira in a worse position.”
Prof. Uche Uwaleke, a fellow of the Chartered Institute of Bankers, said the CBN’s repeated interventions, bolstered by recent increases in foreign reserves, have helped to deter speculative attacks on the naira.
“Expect additional Naira appreciation in the parallel market in the coming weeks as we approach the Yuletide season, which is often marked by significant forex inflows from Diaspora remittances,” he says.