Dollar Hits N600 At Parallel Market, Forex Supply Shrinks

Posted by African Examiner Business News, Featured, Latest Headlines Tuesday, May 17th, 2022

(AFRICAN EXAMINER) – The dollar exchanged at N600 on Monday at the parallel market, heightening fears of a further devaluation of the nation’s currency.

The rate at the Importers and Exporters Window was, however, N415.75 on Monday, widening the exchange rate spread to N184.25.

At Zone 4 in Abuja, which is the hub of the parallel market in the Federal Capital Territory, two Bureau de Change Operators, Mohammed Isa, and Abu Abdullahi, stated that the rate was N599/$ at 10am and 11.14am respectively.

However, the rates for both BDCs changed to N600/$ when they were separately contacted at N3.13pm and N5pm respectively on Monday.

“If I reduce this by N1, I will not be able to make any profit,” one of the two BDCs, Abu Abdullahi, said.

At the Lagos airport on Monday, a BDC operator, Adamu Haruna, said that the rate was “N600/$, no more, no less.”

A BDC operator at Amuwo-Odofin in Lagos, Bala Usman, gave an initial rate of N598/$ in the morning but changed to N599 at 2.53pm when contacted.

“The demand is increasing and the dollar is very scarce now,” he said.

Naira has weakened in the parallel market due to increased speculations, falling external reserves, and low foreign exchange inflows into Africa’s biggest oil producer.