Black Market Rate Today– Nigeria’s Naira has lost its fortress against the US dollar going by the black market rate today, Naira falls to as low as N560/$1 from N545/$1 that it had maintained in almost two weeks.
This was made known according to information obtained from BDC operators trading at the parallel market, also known as the black market in Lagos and Abuja.
Brand News Day Nigeria understands that following the recent hike in forex liquidity at the official window, the local currency had increased by over 600 basis points to 535 /$1 (naira to the dollar) at the black market at the beginning of November. Meanwhile, it has begun to turn upsides, in spite of the massive intervention at the official market.
Similarly, Nigeria’s foreign reserve has continued to witness a marginal decline day-in-day-out, following the successful $4 billion Eurobond issue by the federal government in September.
BREAKING: Naira Crashes Against U.S Dollar, Black Market Exchange Rate Hiked
The influx, which pushed the nation’s reserve above $41 billion had provided additional firepower to intervene in the foreign exchange market. However, the recent decrease in the reserve level can be linked to CBN’s interventions in the official market.
Recall that the Central Bank of Nigeria has topped the number of greenbacks it sells to overseas investors to reduce a backlog of dollar demand that has been in place since crude oil prices fell last year, during the Covid-19 pandemic.
5 Things You Should Know on Dollar To Naira Exchange fall
- The continuous activities in the downturn of the Naira fall to Dollar can be attributed to the market volatility, the higher the demand for the US dollar the higher the exchange rate of the dollar to naira.
- It is worthy to note that Nigeria runs a mono-economy, thus, overburdening the country’s economic activities on the oil market, with the oil prices dictating the currency over the years. When the price of oil rises, the naira rises; when it falls, the naira falls.
- Also, an expert highlights that the nation’s FX issues lie in a gradual economic transformation from a mono-economy (an economy heavily reliant on oil) to a diversified one.
- Despite CBN’s intervention to balance the dollar backlog’s demand, it’s apparent that since crude oil prices fell last year, during the Covid-19 pandemic, the apex bank is yet to balance the demand and supply
- Lastly, the dollar to naira exchange rate might increase in its pace, in spite of the apex bank’s effort, as more investors will demand more dollars considering the forthcoming festival.