The pressure on naira at the parallel market isn’t over as one USD was traded at N575 Wednesday, October 6, 2021 in locations like Allen, Opebi, Isale-Eko, and other parts of Nigeria’s commercial city
At Challenge, Ibadan, Oyo State capital, the black market rate was between N575-N570/$1, depending on your negotiation power.
On Binance peer-to-peer cryptocurrency exchange, a platform hundreds of Nigerians embraced after the “ban” of crypto trading in Nigeria in February, 2021, $1 was NGN567 to NGN560, depending on the seller.
The latest price shows a minute improvement in the value of naira against the USD at the parallel market compared to what was obtainable at the forex market on September 30, 2021, when it’s NGN580/$1
The Cause of Forex Scarcity
The current scarcity of forex was caused by the decision of the Central Bank of Nigeria (CBN) to stop the sales of forex to the existing registered Bureau De Change operators, who were 5,500, according to the apex bank.
In a bid to systematically eliminate the activities of the black market operators, Godwin Emefiele, the CBN governor announced a clampdown on abokifx, a website that tracks forex rates both the official and parallel rate
The founder of the platform Adedotun Oniwinde took down the rates of the forex on his platform, announcing that if that would make the naira currency to regain its value.
But since then, scarcity of fx has continued in the market, thereby causing inflation. CBN said it doesn’t matter provided those who legitimately need fx get it at the regulated rate at the designated financial institutions that have forex licence.
Wide Gap Between Black Market and CBN Rate
While the parallel rate was between N570-N575/$, the CBN rate and various banks has remained stable in the last three months, with only a difference of 99K sometimes.
At the time of this publication, USD/NGN was N410.82 while Great Britain Pounds was NGN559.5368 and Euro went for NGN476.5923. The depreciation of NGN against other majors currencies have implications on Nigeria’s economy
The CBN rate was exclusively for for those who need forex for Personal Travel Allowance, Business Travel Allowance, settling of foreign medical bills, and payment of foreign school fees.
There are guidelines applicants for PTA and BTA and others must abide by before their application can be granted since the apex bank announced names of those who obtained forex at the official rate some days ago with forged air tickets and fake Visas.
CBN had ordered the publication of names of individuals who were found guilty to have contravened the forex regulations or who does so to cheat the economy.