Banks vs street: Naira exchanges against US dollar at 4 different rates

LEGIT NG 

Naira in the foreign exchange market is trading at four different exchange rates against the US dollar on Monday, April 29, 2024.

Legit.ng checks also showed a wide disparity between the Nigerian Autonomous Foreign Exchange Market (NAFEM) window, known as the official market, and different unofficial markets.

Different exchange rate for naira

At the official market, the naira’s closing rate on Friday, April 26th, depreciated to N1,339.23/$1.

On the street, also known as the black market or parallel market, traders informed Legit.ng on the afternoon of Monday, April 29th, that one dollar was being sold at N1,356.

Licensed BDC operators, who were allocated $10,000 by the Central Bank of Nigeria(CBN) at the rate of N1,021/$1, cannot sell above the maximum exchange rate of N1,040.

For Nigerians looking to buy or sell dollars using Fintech apps such as Chipper Cash, checks show that a dollar was priced at N1,510 at the time of writing this report, while the conversion of a dollar to naira from the apps is set at N1,283/$.

CBN seeks solution

The CBN participated in the foreign exchange markets in an effort to halt the depreciation of the naira.

In addition to giving dollars to BDCs, BusinessDay reports that the apex bank requested a two-way quote (the price at which it was willing to buy and sell forex).