Naira hits record low at parallel market, exchanges at N983/$1

The exchange rate between the Naira and the dollar plunged to a record low N983/$1 at the black market based on quotes received on Wednesday as currency traders said there no dollar to sell

This represents a 2.93% drop when compared with the N955/$1 that it traded the previous day as the foreign exchange crisis in the country continues unabated.

This also shows a substantial depreciation from the N950/$1 that it traded last week as the Central Bank of Nigeria (CBN) appears to be still struggling to stabilize the foreign exchange market despite its various policy pronouncements.

Recall that in mid-August, the dollar was quoted as low as N955/$1, stoking fears among investors that the exchange rate might plummet to N1000/$1. This, however, appreciated at some point to N840/$1 after the apex bank warned speculators about potential major losses due to the policies it hopes to introduce.

A top official of the Association of Bureau De Change Operators of Nigeria (ABCON) who did not want to be mentioned said that the forex market is currently in disarray as most of the licensed operators do not have dollars to sell and as such out of business.

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He said, ‘’the market has scattered, the rate is N983/$1. Most of the licensed bureau de change operators do not even have dollars to sell, we are out of business. I think the liquidity is in the so-called parallel market. It’s all about scarcity and when there is scarcity, it gives rise to parallel or black market.’’

He said that if there is dollar available to sell or buy, he might not even do the transaction because he does not know what to do, adding that he is confused as a licensed bureau de change operator

‘’You see this market operates on different level, we have started seeing Binance, we are now seeing Dubai rate, we are now seeing local parallel market rate, so it depends on the level you are.’’