Dollar nears N2,000 on black market as scarcity worsens

The cost of one dollar reached an all-time low of N1,900, racing to N2,000/$1 as scarcity of the greenback worsened at the black market, also known as the parallel market.

This represents a 3.95 percent depreciation in less than 24 hours from N1,825 per dollar exchanged on Tuesday at the black market.

“I don’t have any dollars. There is no dollar in the market because the government has blocked our source of dollar supply’ one of the street traders in Ikeja said.

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The Central Bank of Nigeria (CBN) has introduced several policy measures to boost the dollar supply.

In a targeted operation, operatives of the Economic and Financial Crimes Commission (EFCC) descended on Bureau de Change operators (BDCs) in the Wuse Zone 4 area of Abuja on Monday. The crackdown resulted in the arrest of approximately 50 individuals engaged in illegal currency trading.

The move comes amidst growing concerns over the depreciation of the naira and efforts to curb activities that contribute to the devaluation of the national currency.

The EFCC, in response to these challenges, has established a Special Task Force deployed across its commands to combat activities detrimental to the Nigerian economy, particularly those involving the mutilation of the Naira and the unauthorized use of foreign currency.

According to Dele Oyewale, the spokesperson for the EFCC, the raid and subsequent arrests signify the agency’s commitment to upholding financial integrity and combating illicit financial activities. Oyewale further emphasized the agency’s determination to enforce strict measures to safeguard the stability of the Nigerian currency and deter individuals from engaging in illegal currency trading.

Read also: CBN, ONSA partner to probe, penalise dollar speculators

The operation underscores the EFCC’s proactive approach to addressing economic crimes and its resolve to collaborate with relevant stakeholders to maintain the stability and integrity of the Nigerian financial system.

The EFCC spokesperson’s statement, issued on Wednesday, February 7, 2024, serves as a reminder of the agency’s unwavering efforts to combat financial crimes and protect the interests of the Nigerian economy.