Naira hits 592/$1 at black market as forex scarcity worsens

As dollar scarcity hits Nigeria’s forex market, frustrated manufacturers and travellers have been forced to patronise Bureau De Change (BDC) operators more often than before.

To profit, black market traders pushed the exchange rate for a dollar to N592 on Tuesday evening.

Although traders who spoke to Ripples Nigeria on Wednesday revealed that the rate had dropped to N586-N590 to a dollar.

The Manufacturers Association of Nigeria (MAN) is now warning that the tweaking of Nigerian currency at this pace and forex scarcity may lead to job losses.

In the last few weeks dollar shortage has seen banks placing a cap of $20 per month for online transactions.

Similarly, MultiChoice owners of DSTV and GoTv increased the price of their subscription packages.

In a statement on Tuesday, the PayTV company blamed the economic realities and inflations for the price changes.

The Chief Executive Officer of Financial Derivatives Company, Mr. Bismarck Rewane, had also in January projected that the CBN would devalue the naira by the end of 2022.

He noted that spending on political campaigns ahead of the 2023 general elections would put more pressure on foreign exchange supply in the Nigerian economy.

Read also: Naira value drops further at black market as CBN withdrawals fail to help

Naira also put a poor performance at the official market on Tuesday dropping in value by 0.18 per cent or 75 kobo against the United States Dollar.

Data from FMDQ securities showed at the investors and Exporters window Nigerian currency to its American counterpart closed at N417/$1 in contrast to N416.25/$1 it was sold at the previous session.

Also, the Naira depreciated against the Pound Sterling yesterday at the spot market by N3.41 to trade at N550.62/£1 compared to the previously traded rate of N547.21/£1.

Against the Euro, the local currency recorded a better outcome as it appreciated by N1.45 to sell for N458.17/€1 in contrast to the preceding session’s value of N459.62/€1.

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