Economy

Free fall for Naira as black market exchange rate nears N700 to $1

Bureau De Change operators increased the cost of buying dollar by 1.65% on Monday, as demand overwhelms availability in the black market, amid lack of support from the Central Bank of Nigeria (CBN).
The BDC operators had sold $1 at the rate of N654 on Friday, however, that amount demanded by the foreign currency sellers rose to N665 for one dollar, indicating that the value of the United States currency could touch N700 if demand continues to surpass supply.
Recall that the governor of the Central Bank of Nigeria, Godwin Emefiele, had suspended the Bureau De Change operators from accessing foreign currencies in Nigerian banks.
Emefiele pause forex supply to the black market after accusing BDC operators of aiding illicit financial transactions. He said the BDCs have diverted from their purpose of establishment, and now conducting business with illegal individuals and entities.
Despite the Bureau De Change operators denying the allegations made against them by Emefiele during a CBN Monetary Policy Committee meeting, the financial regulator has continued to snub intervention request from the BDC operators.
The operators said they could help avoid the declining value of the naira if the CBN resumes suppling forex to them, but the lack of FX will continue to subject those in need of currency like dollar to premium price, as the US note is not easy to come by.
According to the central bank, Nigeria’s foreign reserves is around $39.44 billion as of July 18, 2022, rising from $38.60 billion in May 2022.
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