The exchange rate between the naira and dollar fell to N1,100 on the black market according to traders who sell forex per inflow.
Nairametrics obtained this morning quotes from select traders who confirmed quotes between N1,100-N1,110 for inflow. Inflows are forex transactions sold or bought over the wires.
The exchange rate is also quoted for N1,100 on peer-to-peer platforms where the exchange rate is sold via cryptocurrencies.
The exchange rate at the official Nigerian Forex Market fell to the lowest ever point of N848/$1 on Tuesday marking a turning point in Nigeria’s exchange rate crisis.
Nairametrics reported on Tuesday that the exchange rate between the naira and dollar devalued to N848/$1 on the official investor and exporter window on October 17th, 2023. It also traded at a record at an intra-day high of N981/$1.
Last week, the central bank lifted the ban on 43 items imposed under the Godwin Emefiele CBN era.
- The central bank also stated that it will boost liquidity in the Nigerian Foreign Exchange Market and intervene from time to time, stating that interventions will decrease as liquidity improves.
- A few days later, the apex bank released an “FAQ” suggesting that the widening disparity between official and black market exchange rates was due to the 43 banned items implemented in 2015.
- It appears the closing rate achieved on Tuesday could be a sign of things to come in the evolution of the new forex market.
Traders who spoke to Nairametrics lamented about the raping weakening of the exchange rate blaming it on rising demand and lack of supply.
I must confess there is a degree of weakness on the part of the Federal Government to tackle the influence of Black Market in Nigeria. Over the years, the so-called Black market has taken the control of exchange in Nigeria. What the government should do is to mark out strategies that will monitor the very source of power behind the exchange rate in the country. Most of the players withing the black market is Hausa/ Fulani. We all know this and why are we shy of confronting the culprits and fish them out of the system. Let the law enforcement officers be given the authority to arrest erring black market operators. I suspect that our neighboring countries (mostly franco-phones are part of the games. I suspect another powerful country in Europe is aiding and encouraging the black market in Nigeria. I am sure, the authorities in Nigeria are aware of these neighboring countries over the years. Another area that should be monitored is the manufacturing sectors. Let there be established a monitoring sector that will check the activities of these manufacturers. Are they truly importing commodities that are directly related to their business. It will not surprise you that some may be importing sand and claimed they imported goods that are unrelated to what they supplied to the CBN for payment. Another area is our lust for foreign goods. Nigerians must cut down on the desire for luxuries. We must, as a matter of urgency cling to what will save our foreign exchange. The country is not in a position for luxury right now. Let both the rich and the poor fill the impact of what the economy is telling us. The inflation in Nigeria is so high that the government must have to take drastic action. The federal government alone cannot effect the change but we as loyal Nigerians must be prepared to what harmoniously with the government in order to improve the economy. Let every household tighten their belts and help the country to move forward.
The economy is in shambles and all hands should be on deck. Nigeria as a nation should think of home production.
With this in place a lot could be curbed out from the economy such as importation of certain goods which I believe Nigerians can produce.
The money borrowed from the world bank should be utllised in production, with this we can be able to increase our GDP and positively affect foreign exchange.
This might take time but is worth it. Investment should be the critaeria not expenditure.