The Naira has gained against Dollar significantly, trading between N805 to N790 at black market, also known as parallel exchange market on Tuesday, Good Evening Nigeria has learnt.
The decline in Dollar started from the morning rate of N925 to N930 and continued until around 4:00 pm, when news of a potential Central Bank of Nigeria (CBN) intervention circulated among Bureau De Change (BDC) operators.
Recent reports indicated that the CBN intends to take decisive actions to reverse the naira’s depreciation, which will inturn cause losses to speculators.
Acting CBN governor, Folashodun Shonubi, hinted these measures after meeting President Bola Ahmed Tinubu at the presidential villa in Abuja.
“Some of the plans and strategies which I’m not at liberty to share with you, means sooner rather than later, the speculators should be careful, because we believe the things we’re doing when they come to fruition may result in significant losses to them,” Shonubi said on Monday.
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According to reports from Lagos, particularly at Allen Avenue and Bagada, BDCs were buying at N900 and selling at N910 after hitting N970 to the dollar earlier in the day of Tuesday.
In Kano’s Wapa forex market, BDCs were buying at N875 and selling at N905.
At the official rate also known as Investors and Exporters window, the dollar opened at N789/$, reached a high of N799/$, a low of N740/$, and eventually closed at N774/$, marking a N10 increase from the previous day’s N764/$ closing rate.
In response, a money exchange operator stated that the dollar might further decline, leading to financial losses for those who purchased it at higher rates.
A customer shared that the exchange rate shifted dramatically during the day, with initial reports indicating N930 to a dollar in the morning but crashing to N790 by evening.
READ ALSO: CBN to Take Measures to Save Forex Market
According to one of the BDC operators at Zone 4, Ibrahim Muhammad who spoke with Daily Trust correspondent, the sudden downturn would result in significant losses for many in the parallel exchange market.
“They have just sent the BDCs bidding eligibility list to us. Nobody can predict what will happen next.
“If this happens after the meeting, what will happen after the CBN comes up with a new intervention policy to shore up the Naira can just be imagined. So, for now, we are waiting to see what happens tomorrow. It may appreciate a little, but it may also crash further. It is still being exchanged between N800 and N790 as we speak”.
However, on peer-to-peer (P2P) platforms like the Binance Exchange, the dollar continues to maintain its momentum, exchanging at 924 as at Wednesday morning.
