Naira rises to N440/$1 at black market as speculators scramble to sell their dollars

The naira gained against the dollar this morning, exchanging for N440/$1 at the parallel market, the largest single-day gain since March 2020. This represents a massive N37 gain compared to the N477/$1 exchange rate close of Friday, August 28th

Bigwig FX reported yesterday that the naira gained N12 by end of Monday, August 31st to close at N465/$1, the largest. According to a monitored data from Abokifx, the naira appreciated by 5.4% from yesterday August 31, 2020, where it exchanged for N465 to a dollar.

Speculators are scrambling to sell their forex pile as forex traders are reportedly turning down offers to buy due to fear that the naira could strengthen again.

Bigwig FX reported earlier in the day that panic selling was on the mind of most forex traders who fear measures imposed by the CBN might leave them in losses.

Some of these measures or policies by the apex bank which is meant to boost liquidity in the foreign exchange market and conserve forex include; banning of third parties from buying foreign exchange which is routed through Form M. This is to ensure prudent use of the country’s foreign exchange resources and eliminate incidences of over-invoicing, transfer pricing and others.

In a bid to boost forex liquidity, the CBN has threatened to clampdown on exporters who fail to repatriate their forex earnings. They directed banks to submit the names, addresses, and Bank Verification Number (BVN) of all the exporters who have failed to repatriate their export proceeds for necessary sanctions.

This is a developing story…



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