• Saturday, June 15, 2024
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Naira loses 6.12% on black market in one month

Naira opens at N1,520 on black market

The naira has depreciated against the dollar, losing 6.12 percent of its value in one month on the parallel market, also known as black market.

The foreign exchange (FX) market closed for the month of May 2024, with the dollar selling for N1,470, weaker than N1,380 quoted at the beginning of the month.

On a day-on-day basis, the local currency appreciated by 0.68 percent as the dollar was quoted at N1,470 on Friday from N1,480 quoted on Thursday on the black market.

Read also: Naira falls further as dollar sales drop by 30.05%

A currency trader said the dollar appreciation was due to reduced speculation and more supply of the greenback by individuals who have dollars to sell.

Out of options to defend their currencies, African policymakers from Harare in the south to Juba in the east and Lagos in the west are cracking down on street dealers, Bloomberg reports.

According to the report, Monetary authorities in Zambia, Zimbabwe, Nigeria and South Sudan are throwing everything at the money changers, who they accuse of undermining their currencies by speculating. They’ve banned and arrested them, imposed hefty fines and revised existing operational guidelines for bureaux de changes.

All four countries have thriving parallel markets whose exchange rates are far more utilized than the official rates set by the central banks.