BREAKING: Naira To Dollar Rate Exceeds N900 In Black Market (DETAILS)

BREAKING: Naira To Dollar Rate Exceeds N900 In Black Market (DETAILS)

The Nigerian naira’s decline in the black-market trading has continued as the country faces a deepening dollar shortage, even two months after the central bank adopted a more flexible exchange rate system to encourage currency inflows….CONTINUE READING

The currency of Africa’s largest crude oil producer weakened further to 917 naira per dollar, compared to the previous day’s rate of 900 naira, according to Umar Salisu, a currency data tracker at a bureau de change operator in the commercial capital of the nation.

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Due to banks’ inability to provide the demanded dollars, individuals are increasingly resorting to the black market, which is causing the gap between the official exchange rate and the street price to widen.

In an effort to simplify the exchange-rate system and stimulate dollar inflows, Nigeria’s central bank relaxed foreign exchange controls in mid-June. This led to a 40% drop in the official exchange rate, briefly aligning it with the black-market rate.

However, the gap between supply and demand for dollars remains significant, causing the spread between the official rate and the street rate to keep growing. On Tuesday, the official rate was 757.51 naira per dollar, as reported by the Lagos-based FMDQ OTC Securities Exchange, which oversees foreign-exchange trading.

Salisu explained that companies are resorting to purchasing dollars in the informal market to import goods for the upcoming Christmas season sales, while individuals are buying dollars for vacations abroad. He also noted that buyers are struggling to obtain dollars from banks, intensifying pressure on the street market.

Part of the reason behind the dollar shortage stems from the past currency controls implemented by the government to curb dollar demand. With these restrictions now lifted, the market is facing a backlog of unmet requests that needs to be addressed.