Nigerians React As Dollar Crashes To N790 At Parallel Market After Tinubu’s Meeting With CBN Governor

Nigerians React As Dollar Crashes To N790 At Parallel Market After Tinubu’s Meeting With CBN Governor

In a significant turn of events, the value of the dollar has plummeted to a range of N805 to N790 in the parallel exchange market on Tuesday. This decline, which began from the morning rate of N925 to N930, gained momentum around 4:00 pm as reports circulated about a potential intervention by the Central Bank of Nigeria (CBN), catching the attention of Bureau De Change (BDC) operators.

The CBN had recently unveiled plans to take decisive measures to counteract the depreciation of the naira in the upcoming days, thereby resulting in substantial losses for currency speculators.

Acting CBN governor, Folashodun Shonubi, hinted at these developments on Monday after a meeting with President Bola Ahmed Tinubu at the Presidential Villa in Abuja.

Reports from various sources indicate that BDCs are currently purchasing at N900 and selling at N910 in locations such as Allen Avenue and Bagada in Lagos. This comes after earlier rates reached as high as N970 to the dollar earlier in the day.

Meanwhile, at Kano’s Wapa forex market, BDCs are engaging in transactions at a buying rate of N875 and a selling rate of N905 per dollar.

A closer examination of the Zone 4 BDCs market in Abuja reveals a situation where currency speculators were caught off guard by these rapid developments.

However, the Investors and Exporters window witnessed a different scenario. The dollar’s value commenced at N789/$, reached a peak of N799/$, and touched a low of N740/$ before eventually closing at N774/$, which is N10 higher than the previous day’s closing rate of N764/$.

In response to these events, a currency exchange operator expressed concerns that the dollar’s value might continue to decline, leading to financial losses for those who purchased the currency at higher rates.

A customer shared their experience, stating that the exchange rate was quoted at N930 to a dollar in the morning, only to discover later in the evening that it had crashed to N790. This rapid change left them with no choice but to exchange at the lowered rate.

Ibrahim Muhammad, a BDC operator in Zone 4, elaborated on the situation, emphasizing that the sudden crash has disrupted the market and could result in significant losses for parallel market participants. He highlighted the uncertainty surrounding the future, particularly considering the potential impact of upcoming CBN intervention policies. As of now, the dollar continues to be exchanged within the range of N800 to N790, leaving the market awaiting further developments.