Dollar to Naira has crashed to N710 per dollar at the Black Market
The naira has further depreciated in the black market, now trading for N710 to the dollar on the Aboki Forex exchange platform.
According to data from Aboki Forex, the national currency, which on Monday was trading for N670 against the dollar, has dropped even more since then, dropping 6.7 percent in just two days as of Friday afternoon.
The Central Bank of Nigeria (CBN) banned the sale of foreign currency to bureau de change operators a year prior to today’s record decline.
Due to their unauthorised sales of foreign exchange above the market they were authorised to serve, the BDC operators’ purchase of foreign currency had previously been prohibited by the apex bank.
BDC operators were a significant part of the black market before the ban, helping people who couldn’t legally access foreign currencies directly from the CBN to maintain their exchange rates.
According to Peoples Gazette, the inability of BDC operators to obtain foreign currency from the CBN could have a significant negative effect on the nation’s economy by increasing pressure on the national currency.
What is the Dollar to Naira exchange rate when Godwin Emefiele took Over?
The currency exchange rate was approximately N501 to a dollar when CBN Governor Godwin Emefiele forbade the sale of foreign exchange to BDC. However, the value of the naira fell to N670 to the dollar a year after the ban.
The apex bank threatened to detain and prosecute Nigerians last week who were using naira to purchase dollars in an effort to further restrict the flow of foreign exchange at the parallel market.
“It is unlawful for anyone to withdraw cash from banks in order to purchase dollars. You will understand the implications if the security agencies detain you, Mr. Emefiele said at a Monetary Policy Committee (MPC) meeting in Lagos.
However, Mr. Emefiele has come under fire for failing to implement measures that would have helped to stabilise the value of the nation’s currency on the foreign exchange market.
Since Godwin Emefiele took over as governor of the central bank in March 2014, the value of the naira against the dollar at the Investors and Exporters window has dropped from N164 to N430 on Wednesday.
Naira to dollar Declining History
The Naira dropped from N180 to the dollar in 2014 to N710 on Wednesday in the parallel market.
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