Understanding the Parallel Foreign Exchange Market in Nigeria

Foreign Exchange Market Nigeria Dollar To Naira

A parallel market in foreign exchange (FX) refers to an unofficial marketplace where currencies such as USD, GBP, and EUR are traded for the local currency outside the regulated channels. It closed at $/1,685 at the time of this publication. In Nigeria, this market exists alongside the official FX market, often exhibiting a significant disparity between … Read more

5 Things to Watch in Dollar To Naira This Week December 14, 2020

Dollar to Naira Exchange Rate this week Monday, December 14, 2020, to Friday, December 18, 2020, is going to be interesting and here are the five things that could trigger a slight spike in the value of US dollar against the Nigerian Naira this week. Last week between Monday, December 7 to Friday, December 11, … Read more

Parallel Market Is Shallow Godwin Emefiele

Governor of Nigeria’s apex bank Godwin Emefiele has said that the parallel market is shallow and illegal, patronise by those who engage in illicit transactions and for “corruption purposes” He stated this at the end of the last 2020 Monetary Policy Committee (MPC) meeting, in Abuja. He said it is unfair to use the parallel market rate … Read more

Parallel Market: CBN Governor Got It Wrong On Foreign Exchange

usdollar_to_naira_exchange_rate_parallel_market

I watched the governor of the Central Bank of Nigeria (CBN) Godwin Emefiele speak on the activities of speculators on the foreign exchange on TV, he looked and sounded helpless. I sympathise with him because some of the measures put in place by the apex bank are not producing the desired impact at stabilising forex. … Read more