Dollar Sells For ₦1,355 At Black Market

The Nigerian currency, the naira, continues its downward spiral against the US dollar, reaching a new low of ₦1,355 in the black market as of Thursday.

This development comes five months after the dollar rate first exceeded the ₦1,000 mark in the parallel market.

While the dollar’s strength persisted, there was a slight appreciation in the official Nigerian Foreign Exchange Market (NAFEM), where the naira closed at N902 against the dollar, up from N931.23.

This decline in the naira’s value is increasingly impacting the cost of living in Nigeria.

Despite recent efforts, including a $2.25 billion foreign exchange support from AfreximBank and the Central Bank of Nigeria’s (CBN) attempts to clear forex obligations to strengthen the market, the naira’s depreciation continues unabated.

Reports from Daily Trust indicate that the exchange rate fluctuated between ₦1,170 and ₦1,200 from late December 2023 to early January 2024, during which government officials were optimistic about the naira’s recovery.

However, recent days have seen increased pressure on the currency, pushing it past ₦1,300 against the dollar in the parallel market.

Current rates in Lagos and Abuja show the dollar trading at ₦1,350 and ₦1,355, respectively, highlighting the ongoing challenges faced by the Nigerian economy and the urgent need for effective monetary policies to stabilize the naira.

A Bureau de Change operator in the FCT, Gidado Ibrahim who spoke with the platform said, “I don’t know what is happening again, because you can imagine for some time now, it was exchanging between ₦1, 200 to ₦1, 250 to the dollar and just from yesterday it has gone to ₦1, 355 and even more.

“To worsen the situation, the dollar is just going up against the naira and it doesn’t look like the naira will recover anytime soon. The government needs to sit up.”

Also speaking, another BDC operator, Ali Musa told Daily Trust that, “Dollar is even difficult to get. Anyone that wants to buy up to $1,000, we have to source from colleagues.

“I think the scarcity is what is causing it (US dollar) to be going up and it is unfortunate because it will reach a point where people will no longer be interested in buying. Even myself, I am angry because the dollar should not be this high against the naira.”

Another BDC operator in Lagos, Abu Dollar said it was sold for ₦1, 350 yesterday.

He said the price increase might continue because of the acute shortage of dollars in the market.

“As I am talking to you, many people are unable to get the dollars. I think it is because of people travelling. Some of them came for the holiday and they want to return. This I believe is one of the reasons for the hike in rate.”