Dollar rate widens in black, official markets as Naira falls across channels

Bureau De Change operators continue to sell the United States dollar at a premium price in the black market, maintaining its over N300 difference when compared to the rate in the official market.

This is despite the average rate of the dollar going for N800 on Tuesday, in contrast to the about N865 the American greenback exchanged for during trading the previous day.

On Monday, demand for the USD had gone haywire after reports circulated that President Muhammadu Buhari was in support of the release of the redesigned naira notes.

READ ALSO: Naira depreciates slightly, exchanges at N446 to dollar

Report of President Buhari’s position on the decision of the Central Bank of Nigeria (CBN) on Sunday sent the dollar rate above N800 from the N790 it was sold on the black market on Friday.

With the dollar stabilising above N800, it gives credence to the statement of Association of Bureau De Change Operators of Nigeria (ABCON) President, Aminu Gwadabe, that, “I am not a prophet of doom and student of continuing naira depreciation but except fundamental goodwill and courage are demonstrated, the naira will continue to suffer loss in exchange for the greenbacks.”

Gwadabe had stated that the foreign policies of the Central Bank of Nigeria (CBN) were fueling the value of the US dollar against the naira, and creating a huge premium between official and parallel market rates.

The exchange rates in the two forex windows widened despite the naira depreciating on Tuesday to N446/$1 in the official FX market, indicating dollar value rose from Monday’s N443.