Last updated on July 21st, 2022 at 01:10 pm
The foreign exchange market has become a free for all, just as the governor of the Central Bank of Nigeria (CBN) Godwin Emefiele has technically abandoned his primary responsibility as the head of the apex bank for a political ambition.
While USD/NGN is NGN415.83 (sell) and NGN413.83 (buy) on the CBN FX rate page, it’s a different story at the Investors and Exporters Window on Thursday, May 12, 2022, when $1 was exchanged at N420 as against N418.75 traded on Wednesday.
The highest rate recorded within the day’s trading was NGN444 before it settled at N420 against the US dollar
By the end of trading at the official Investors and Exporters Window, a total of 160 million dollars was traded.
Black Market Rate
The black market rate of the US dollar to naira on May 12, 2022, was NGN596 (sell) and NGN590 (buy) at the close of trading.
The FX black market is dominated by the CBN’s ‘disbanded’ Bureau De Change operators who have been major players in Nigeria’s forex market since the military regime introduced them into the system.
The rate is a bit higher at the P2P market which is dominated by cryptocurrency traders who buy digital assets with foreign currencies.
USD/NGN at the P2P rate is NGN606.82 (sell) and NGN603.91 (buy)
EUR/NGN Exchange Rate
Euro is NGN620 (sell) and NGN613 (buy) at the black market on Thursday. On the P2P platform, it’s NGN632.10 (sell) and NGN629.07 (buy).
GBP/NGN ended the day at NGN747 (sell) and NGN740 (buy).
Note: The exchange rate is volatile. You may make millions within minutes just as can lose what you imagined. Before opening a trade, ensure to check the updated price.
While is the naira falling?
Bad policies are major factors.
But Nigerian politicians are notorious for hoarding forex during electioneering campaigns, thereby putting huge pressure on the available ones which are not sufficient to service the demands of Nigerians.
Nigeria operates an importing economy, most of the politicians depend on foreign goods and services like foreign medical among others.
The naira which is among the poor performing currencies in Africa may become weaker as the country approaches the 2023 general elections.
For instance, Nigeria’s apex bank governor who should have morally resigned as the head of the bank reportedly registered as a member of the ruling party in Ward 6, Ika South Local Government Area of Delta State, reported The Punch.
When he was confronted, he denied ever purchasing the NGN100 million APC presidential nomination form, saying a group of farmers purchased the form in his name.
Before the purchase of the form, photos of Emefiele’s branded campaign vehicles have circulated on social media.
And on Thursday, May 12, 2022, after meeting President Muhammadu Buhari, he fired back at his critics, saying “Let them have heart attacks. It’s good to have a heart attack.”
A political inflammatory statement like this shouldn’t be from a man who manages Nigeria’s monetary system. It will definitely have an impact on the economy