One dollar now trading for N792.50 at parallel market

Dollar nears N1,500 as scarcity hits black market

One dollar is currently trading at an average rate of N792.50 at the parallel market, also known as the black market.

In some parts of Lagos like Festac, dollars are being quoted at N790 and N795 in Apapa, Lagos.

The current rate is 0.94 percent (N7.5) higher than N785 traded on Wednesday, leading to a depreciation of the naira against the dollar.

Naira depreciation was attributed to increased demand for dollars by importers and individuals who want to travel for business, school, and other purposes.

“Demand for dollars is high. It is the same people who are buying it,” said one of the traders in Lagos.

At the Investors and Exporters (I&E) forex window, naira appreciated by 3.52 percent following the activities of the willing buyers and willing sellers in the market.

After trading on Wednesday, the dollar was quoted at the rate of N742.31 as against N768.44 quoted on Tuesday, data from the FMDQ indicated.

On June 14, 2023, the CBN abolished segments of the official FX market to the I&E Window, where the “willing buyer and willing seller” was re-introduced. Based on this adjustment, the official rate rose from N463.38/$ to N742.31, the current rate.

For the past six years, the exchange rate regime consisted of a highly managed official rate and an FX market lacking in clear and predictable price discovery, including due to the use of multiple FX windows to serve multiple purposes, the World Bank said in a report.