Monday, August 8, 2022

Naira now N670 to dollar

While the naira fell in value on the black market, it remained N430 to the dollar at the official NAFEX market.

• July 25, 2022
Naira and Dollars
Naira and Dollars

The naira fell further in the parallel market to trade for N670 against the U.S. dollar on exchange platform Aboki Forex, according to checks by Peoples Gazette.

While the naira fell in value on the black market, it remained N430 to the dollar at the official NAFEX market.

The continuous depreciation of the naira comes a year after the Central Bank of Nigeria (CBN) prohibited the sale of forex to bureau de change operators.

The apex bank had a year ago banned the sale of forex to BDC operators, citing the illegal sale of forex above the market they were licensed to serve.

Before the ban, BDC operators had long been a major black market, providing exchange rate support to those unable to formally access foreign currencies directly from the CBN.

Recall that Peoples Gazette had projected that the suspension of BDC operators’ ability to source foreign exchange from the CBN could have a significant impact on the country’s economy and bring naira under further pressure.

When CBN Governor Godwin Emefiele banned the sale of forex to BDC, the exchange rate was around N501 to a dollar, however, a year after the ban, the value of the naira has plummeted to N670 to a dollar.

In an attempt to further restrict the flow of forex at the parallel market, the apex bank last week threatened to arrest and prosecute Nigerians using naira to buy dollars.

“For those taking money from banks to buy dollars, it is illegal to do so. If the security agencies hold you, you will know the implication of that,” Mr Emefiele said at a Monetary Policy Committee (MPC) meeting in Lagos.

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

Chinese military

World

China continues military drills to intimidate Taiwan 

Mr Wu said the tensions were “deliberately” stoked by Washington, with U.S. House of Representatives Speaker Nancy Pelosi travelling to Taipei last week.

Oil Barrels

Economy

Oil Prices: Oman records $2 billion budget surplus first half of 2022

In March, the Sultanate of Oman announced that the country had slated the revenue from soaring oil prices to reduce its public debt and support spending on government projects.

Abdul Wali Mohmand (Omar Khalid Khorasani)

World

Top Taliban commander Mohmand killed in roadside attack

The U.S. State Department described him as a former journalist and poet who studied at several madrasas in Pakistan.

Paul Pogba and Qatar 2022

Sport

Qatar: Deschamps confident of Pogba making World Cup 

There were early suggestions surgery could see the World Cup winner miss Qatar 2022, but he has opted instead for therapy.

Israeli soldiers

World

Gaza: Israel, Palestine militants hold ceasefire talks, crossings reopen

Hamas seized power in 2007, prompting Israel to tighten a blockade of Gaza, a move Egypt supports. Both Israel and Egypt justify the measure with security interests.

Australian cruise ship

Agriculture

First ship carrying maize from Ukraine reaches destination

So far, 10 grain ships have departed from Ukrainian ports, according to the Turkish Defence Ministry.