Traders have raised concerns on the unavailability of dollar in the exchange market, leading to the further crunch of Naira in the forex market. According to Wednesday report, Naira to dollar at the black market, currently sells for N983/$1, 2.93% drop within 24 hours.
As at Tuesday, September 19, Dollar was sold at the rate of N955/$1 and N950/$1 at the end of last week.
This is as the county continues to experience unabated exchange crisis, particularly since the fuel subsidy removal in May.
An anonymous top official of the Association of Bureau De Change Operators of Nigeria (ABCON) told newsmen that majority of the licensed operators in the forex market are currently out of business because there is no product (dollar) to sell.
‘’The market has scattered, the rate is N983/$1. Most of the licensed bureau de change operators do not even have dollars to sell, we are out of business. I think the liquidity is in the so-called parallel market. Its all about scarcity and when there is scarcity, it gives rise to parallel or black market.’
‘’You see this market operates on different level, we have started seeing Binance, we are now seeing Dubai rate, we are now seeing local parallel market rate, so it depends on the level you are.’’
The ABCON spokesman added that the few of them that still have dollars are hoarding it as they are unsure of what is about to hit them next.
While the Naira value to dollar kept depreciating and fluctuating, traders once feared it might hit N1000/$1. But there was a turn around and the Naira appreciated back at some point to N840/$1, thanks to the Central Bank of Nigeria (CBN)’s warnings to speculators on the potential loss they would incure, with the new policies they were about to introduce.
Despite the various policies announced recently, the apex bank still appears to be struggling to stabilize the foreign exchange market.
Expectations are on the newly nominated CBN Governor, Yemi Cardoso, to change the narrative.
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Right after President Tinubu’s announcement of Cardoso’s nomination, the value of the dollar surged to N960/$1 on Monday, followed by an increase to N970/$1 the next Tuesday. By Wednesday, it had skyrocketed even further to N983/$1.
Nigeria Exchange Rate report states that so far in September 2023, the Nigerian forex market has experienced over 4% in decline. This is widely attributed to the little or no supply of the excess demand of dollar in the forex market.