The foreign exchange crisis in Nigeria deepened on Thursday as the exchange rate for the US dollar surged to over N1,000 at the parallel market, according to a report by Daily Trust.
A survey conducted at popular black markets in Lagos revealed that the US dollar was traded between N1,000 and N1,050 during the early hours of Thursday, eventually stabilizing at N990 by the evening.
This significant gap of N252 was noted in comparison to the official exchange rate at the Investors & Exporters FX window, where the naira closed at N738.
The difference in the value of the US dollar when exchanged through official channels has been steadily widening since the Central Bank of Nigeria brought together all the different segments of the foreign exchange market in June.
Despite the unification policy by the CBN, the parallel market (black market) continues to be popular among currency traders and individuals due to the scarcity of the US dollar in the official market.
Ismail Muhammed, an operator at Allen Roundabout, lamented, “There is scarcity at the market. We are now buying dollars for N990 but earlier in the day, it was sold for N1,000. Some people exchanged it for N1,050.”
Alhaji Abdullahi Olugbede, another operator, attributed the surge to the shortage of dollars among licensed Bureau De Change Operators, saying, “When there is scarcity, the dollar will go up against the naira, but we are not happy. We should pray that it will come down because this is not good.”
