Naira’s free fall continues, trades N692/$ at ‘black market’

The naira, on Tuesday, fell to N692 per dollar at the parallel market popularly known as the black market.

The figure signifies a depreciation of N9 or 1.3 per cent compared to the N683 it traded last week.

Bureaux De Change operators who spoke to TheCable said they purchase the dollar at N685/$, make a gain of N7 and then sell at N692.

According to the traders, the persistent naira depreciation is due to increased demand by customers and the scarcity of the dollar.

“I know a trader who wants to buy goods from China. He has been looking for $40,000 in this market but he has not gotten it since 10 am,” a BDC operator said.

At the official market, the naira also depreciated by 0.09 per cent to close at N429.43/$ on Monday, according to information obtained from FMDQ OTC Securities Exchange — a platform that oversees official foreign exchange (FX) trading.

To reduce the persistent forex pressures in the country, the World Bank and the International Monetary Fund have advised the Central Bank of Nigeria (to unify exchange rates.

Nigeria is facing a forex exchange crisis, and this has affected the price of goods and services, including local and international flights.

Recently, the International Air Transportation Association said foreign airlines’ funds being withheld in Nigeria increased from $450 million in May to $464 million in July.

Due to the inability to repatriate its funds, Emirates Airlines, the flag carrier of the United Arab Emirates, said it would halt flights to Nigeria from next month.