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.

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.

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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.

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.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.