After a period of stability, the Naira has crashed on the black market.
Nigeria’s external reserve fell by 0.06 per cent
After weeks of constant exchange rates of N565/$1, the Nigerian national currency, the Naira, has plummeted against the US dollar, exchanging at N572/$1.
ALSO READ: Dollar To Naira Exchange Rate Today: See Black Market Rate & CBN Exchange Rate for December 13th, 2021
On Sunday evening, December 12, 2021, Ejes Gist News conducted a survey at the Bureau De Change (BDC) market in Ogba, Lagos, Nigeria’s commercial city, and found that the naira to USD exchanged at N572/$1, failing to maintain the N565 position of 1 dollar to naira that it had held for more than eight weeks after the end to naira exchanged for N530/$1.
After a constant exchange rate, the Naira to dollar collapses in the black market (parallel market).
players on the parallel market, often known as the black market, bought a dollar at N567 and sold it for N572 on Sunday evening, December 12, 2021, after buying N560 and selling for N565 the week before on Monday, December 6.
The naira to dollar and dollar to naira exchange rates on Sunday revealed that the Nigerian national currency, the Naira, has dipped against the US dollar weeks after a steady rise that saw it gain almost N25 since it sank to its lowest level of N575 to a dollar on September 20, 2021.
Meanwhile, sources indicate that this comes months after the Central Bank of Nigeria (CBN) halted foreign exchange (forex) sales to BDC operators on July 27, 2021, and advised all people with a real need for forex to go to banks. The naira depreciated by N85 against the dollar in less than two months, from N490 to N575 per dollar on September 20.
Even though the dollar to naira exchange rate opened at 572 for $1 on the parallel market (black market).
The Central Bank of Nigeria (CBN) does not recognize the parallel market. As a result, anyone in need of currency should contact their bank, with the I&E window being the sole known exchange, according to the apex bank.
Nigeria’s external reserve fell by 0.06 per cent to $40.905 billion on Thursday, December 9th, 2021. This indicates a reduction of $26 million from the previous day’s total of $40.931 billion.
The apex bank’s constant intervention in guaranteeing the currency rate’s stability can be ascribed to the country’s reserve level’s consistent fall.
It’s worth noting that the country’s foreign reserve increased by $5.99 billion in October as a result of the federal government raising $4 billion through the issuing of Eurobonds on the international debt market.
Nigeria’s foreign reserve fell by $633.47 million in November, compared to a gain of $5.99 million the previous month and a gain of $2.76 million in September 2021. The reserve gain for the year to date has dropped to $5.74 billion.
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