Last updated on July 21st, 2022 at 01:11 pm
The forex market is the most dynamic market in Nigeria and, of course, around the world. Today, Wednesday, May 4, 2022, there were slight changes as buy/sell reaches NGN580/NGN590 at the close of trading.
Many factors are responsible for the change in the exchange rate: both internal and external. We tracked the changes in the rate below
USD/NGN CBN Exchange Rate
The exchange rate remains the same as par the CBN rate, closing at NGN415, according to the data on the official website of the apex bank.
Though the rate on the Godwin Emefiele-led apex bank has been criticised severally. Critics of the CBN rate pointed out that CBN rates are not the true reflection of the value of the naira against the US dollar and other international currencies for global market.
Apex bank is known as a bankers’ bank, as such buyers of forex pass through the licensed financial institutions to make purchases for USD.
To ease the process in 2021, the CBN created Nigeria’s forex portal known as the trade monitoring system for those who need forex for legitimate needs to submit their applications.
Most of them complained that their forex applications are not honoured even after meeting all the requirements, especially foreign students who apply for forex to pay school fees.
Commercial Bank Rate
On Wednesday, May 4, 2022, the bank exchange rate maintained the same price as we reported on May 3, 2022.
While it’s NGN490/$ at GT Bank, UBA maintained NGN503 rate, rate by Access Bank was NGN505/$, but some people who made an online purchase using their debit cards have reported a higher rate.
One of the users says he was charged NGN550, but we can’t independently verify this claim at the time of publication.
BDC Exchange Rate
The USD/NGN BDC rate closed NGN590 (sell) and NGN580 (buy), making it a margin of NGN10.
They are usually called the parallel market operators, but since the CBN stopped the sales of forex to the Bureau De Change operators in 2021, they’ve been sourcing their funds from different channels.
The action of the CBN pushed the USD/NGN exchange rate to a new level. Scarcity was created, and pressures are on the naira, turning the entire forex market in Nigeria into a full-blown black market.
However, the price is not the same in all the 36 states of the federation. For instance, the rate at Osogbo (Osun State) is different from what’s obtainable in Abuja, the Federal Capital Territory (FCT). Of course, demand and supply play a huge role in this aspect.
P2P Exchange Rate
Since the CBN handed punitive sanctions on banks that allowed Nigerian cryptocurrency traders to make crypto purchases through their debit cards, they’ve resorted to peer-to-peer trading platforms.
They’re charged using the USD, thereby pushing the USD/NGN exchange on P2P between NGN588 to NGNNGN591/USD. It was NGN590/USD a day earlier. And the market rate on Thursday, May 5, 2022, is likely to pose another question about the value of naira against major competitors on the global stage.