abokifx suspends forex update on its website

Naira Falls To N575 Against US Dollar As AbokiFX Suspends Black Market Rate Update

Last Updated on September 21, 2021 by Ope Quadri

Two days after Abokifx suspended black market rate on its foreign exchange tracking website, Naira has depreciated further.

On Monday, September 20, 2021, $1 was N575 in some parts of Lagos, even as Abokifx removed all the updates on its website, following a threat from the Central Bank of Nigeria (CBN) on Friday, September 17, 2021, to shut down the website.

Governor of the apex bank, Godwin Emefiele had accused its owner Adedotun Oniwinde of using the parallel market rate on its platform to manipulate forex rate, thereby making millions of Naira in the process.

Abokifx denied the manipulation allegation and subsequently announced that it will suspend the update, “if that would make the naira appreciate” against the US dollar, Euro, and Pounds Sterling among others.

Remote Causes of Fallen Naira:

In our earlier report, we told you that the depreciation of the naira against USD and other major foreign currencies began in the 80s

The problem continued till 2014 when $1 was N166 and hit N199 by the time President Muhammadu Buhari took over power in May 2015.

The administration of the APC-led government has witnessed more naira depreciation, but the announcement of the Emefiele on July 27 that CBN would stop the sales of forex to Bureau De Change Operators seemed like the last straw that broke the camel’s back.

Before the stoppage, CBN was selling $20,000 to each of the 5,500 BDC operators across Nigeria.

BDC had become so powerful that when CBN stopped funding them, the naira slumps against other major currencies at the fx market.

Though the BDC operators initially boasted that they were not be affected by the action of the CBN, saying they had multiple FX sources, it became obvious that they needed the CBN for survival when they complain that more of their members could lose their jobs.

Reliance of Nigerians on Abokifx

The parallel market tracking website which gives updates of black market rates real-time said it relied on sellers and buyers on the streets in Lagos.

After the Friday allegation, it didn’t only stop update on its platform, it also removed the earlier rates it had on its website.

But Monday saw the naira depreciating further to N572, N575, and N570 in some parts of Lagos, while it’s N570 in Osogbo, Osun State capital.

At the time of this report, one pound was N780, it was N770 on September 17.

Some financial analysts and economists said Emefiele is fighting the wrong battle and wasting his time by fighting an individual who only jumped on the loopholes created by the system.

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