简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:The Naira exchange rate to the US dollar fell to new lows at the black market on over the weekend exchanging at N900/1$. This marks a double increase when compared to the official exchange rate at the Investor's and Export (I&E) window currently exchanging at N440/$1 as at Friday 4th November 2022.
By: Damian Okonkwo
The Foreign Exchange (FX) scarcity in Nigeria has worsened to unseen levels since the history of the country in November with the Naira exchange rate to the US dollar at the black market falling to N900/1$ on over the weekend.
This equals a double increase when compared to the official exchange rate at the Investor's and Export (I&E) window currently exchanging at N440/$1 as at Friday 4th November 2022.
Similarly, the exchange rate for other foreign currencies at the black market fell to new lows. The British pounds for instance were exchanged at N1000/£1 at the black market, while Euro was exchanged at N870/€1.
Many have blamed the continuous devaluation of the Naira on the current CBN policy to change the major Naira notes by year-end. Thus, many who have been hoarding the old currency have been compelled to exchange them into foreign currencies creating more demand for the US dollar at the black market.
Judging from the look of things at the black market today, one would reckon that the dealers at this market seem unregulated as they set the rate at will based on the increasing demands.
Added to this, the failure by commercial banks to provide enough FX for their clients has further channeled the demand to the black market.
At present, the rate seems to be increasing every week and many fear it might attain N1000/$1 by December when the demand for FX will further increase due to the Festive season.
Many locally based companies in Nigeria and other small business enterprises within the country now find it very difficult to survive and are unable to obtain the raw materials for their productions due to increasing costs.
The unemployment rate and hardship within the country presently is one unforeseen for decades now.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
When a country’s currency appreciates or depreciates in value, it reflects the underlying shifts in its economy and global market dynamics. For forex traders, understanding what drives these fluctuations—and how to strategically prepare for them—can make the difference between profit and loss in an ever-volatile market.
Dukascopy marks 20 years of excellence in trading, offering JForex, MT4/5, 1,200+ instruments, and global banking, dedicated to trust and innovation.
Track key forex pairs like EUR/USD, USD/JPY, and USD/MXN for insights on volatility and market sentiment during this U.S. election week, November 5, 2024.
In the current political climate, understanding the policy differences between the main candidates has become increasingly important. As the 2024 U.S. presidential election approaches, the intense rivalry between Trump and Harris not only influences voters' decisions but also determines the future direction of the nation at a crucial time. With voting imminent, voters face two distinctly different governance philosophies and policy directions that impact not only U.S. domestic and foreign policy but also profoundly affect the global investment landscape.