Dollar To Naira: Black Market Speculators Lose Big As Naira Strengthens To N640/$1

The exchange rate between the Dollar To Naira Black Market Today 4th August 2022 has gained momentum to N640/$1 threshold at the parallel market, despite trading last week at N710/$1. This is according to information from Bureau De Change operators in Lagos State.

Since Monday, August 1, the Naira has strengthened against the US Dollar significantly more easily in all facets of the foreign exchange (FX) market.

Dollar To Naira: Black Market Speculators Lose Big As Naira Strengthens To N640/$1
Dollar To Naira: Black Market Speculators Lose Big As Naira Strengthens To N640/$1

Dollar To Naira Black Market Today 2022

There has been a relative relief for the Naira against the US Dollar across all segments of the foreign currency (FX) market after it faced challenges in July due to demand for the dollar which was spiked by panic buying over devaluation concerns.

The Nigerian currency strengthened on the official market by 0.03% to settle at N428.88 to the dollar on Monday, according to data on FMDQ OTC.

In order to ensure stability, the Central Bank of Nigeria (CBN) frequently intervenes in the official foreign exchange market.

The CBN’s spokeswoman, Osita Nwasinobi, stated last week that the central bank would continue to take decisive steps in the forex market to prevent future declines in the value of the naira.

In order to prevent the dollar to naira rate from falling much further, he warned forex purchasers not to fall prey to the speculative practices of some participants in the FX market.

Mounting pressure on the Dollar to Naira Rate

Although there are local and global viewpoints on the pressure on the naira, the demand for foreign exchange for goods and services has remained constant, posing a demanding challenge.

In addition to damaging investor confidence and reducing forex inflows into Nigeria, the country’s deteriorating security situation also damaged the economy by driving up the price of gasoline subsidies and increasing oil theft.

The apex bank reaffirmed its commitment to continuing to reform the forex market and pursuing all measures aimed at sanitizing the market to increase transparency and ensure proper operation in order to get rid of illicit currency traders from the economy.

Dollar To Naira: Black Market Speculators Lose Big As Naira Strengthens To N640/$1

Dollar To Naira Black Market latest rate at this moment of 4th August 2022 has appreciated to N640/$1  though last trading session ended the day at N720/$1. This is according to information obtained from Bureau De Change operators.

The naira as of yesterday continued its recovery on the parallel market, otherwise called Black Market, appreciating to N660 per dollar a few days after security operatives raided Bureaux De Change (BDC) hub in Abuja.

The nation’s currency had depreciated to about N720 to a dollar on the parallel market last week.

On the official market side, the naira appreciated by 0.03 percent to close at N428.88 to a dollar on Monday, according to data on FMDQ OTC Securities Exchange, a platform that oversees official foreign-exchange trading in Nigeria.

Last week, operatives of the Economic and Financial Crimes Commission (EFCC) raided Wuse Zone 4, Federal Capital Territory, Abuja, over allegations that some Bureaux De Change (BDC) operators are mopping up foreign currencies.

“The raid by EFCC in Abuja BDCs last week dampened demand,” a source told TheCable.

“There were large buyers last week that many had to queue up!

“The current situation tells you that if you allow the market to work, it will find its level. We were blaming aboki fx before.”

President of the Association of Bureaux De Change, Aminu Gwadabe said, the “market surveillance” was done in collaboration with the association.

“We have a cordial relationship with the security agencies and ongoing collaboration with the agencies on the exchange rate issues,” he said.

The Central Bank of Nigeria (CBN) regularly intervenes in the official foreign exchange market to maintain stability.

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