Gap between official and black market dollar rates now N130.53 kobo

Investors and exporters in the official market were offered the United States Dollar (USD) at a range of N799/$1 and N475/$1 on Friday.

The naira to dollar rate fluctuated during business hours in the investors’ and exporters’ (I&E) window before settling at N743.07/$1.

This indicates the naira appreciated in value by 4.30 per cent and the price of the dollar fell by N33.43 kobo at the close of trading, as both currencies closed at N776.50/$1 on Thursday.

Ripples Nigeria gathered that the depreciation of the dollar in the official market widened the gap between the channel backed by the Central Bank of Nigeria (CBN) and the black market.

Dollar heading to pre-naira devaluation rates’ gap

The gap between the official and black market rates widened to N130.53 kobo on Friday, as the dollar was sold at N873.6/$1 in the parallel channel.

READ ALSO:Naira to dollar rate closes at N789/$1, peaks at N804/$1 in official market

According to a report obtained from Naira Rates, a black market aggregator, the value of the United States currency rose slightly by N0.8 kobo during trading on Friday, up from the previous day’s N872.8/$1.

Recall that the CBN had collapsed the multiple exchange rates in the official market to the I&E window rate and devalued the naira to close the gap between the official and black market rates.

Prior to the devaluation of the naira on June 14, the gap between the official market’s I&E rate and the black market was N284.03 on June 13, as the USD was sold at N471.67/$1 in the former, while the latter’s rate was N755.7/$1.

But after the devaluation, the gap decreased to as low as N12.98 kobo on June 19, as the dollar rate in the official market rose above that of the parallel channel, with the former averaging N770.38/$1 and the former reporting N757.4/$1.

However, the gap has begun to retrace its step to pre-naira devaluation in recent weeks, as the dollar rate begins to gain more ground in the black market, while the naira continues to depreciate further.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now