Black market traders make millions as Naira falls to N606/$1

Black market currency traders continue to profit from forex scarcity in the country as the gap between official and unofficial market exchange rates widen further.

On Tuesday, traders who were able to obtain the US dollar at a cheap rate made millions as they exchanged Naira for a dollar at N606 to potential customers who had approached the market for quick access to FX.

The exchange rate is a whopping N187.75 gap when compared to the N418.25/$1 it closed at the official market.

What this means is that if a trader was able to sell $50,000 to a prospective client at the rate of N606/$ after being able to get a dollar at the official rate, the trader has made a whooping N9.38 million on the transaction.

Naira’s significant drop in value at the black market is despite the increase in forex supply at the official market by $181.28 million or 340.4 per cent to $234.54 million compared to $53.26 million available on Monday.

The Central Bank of Nigeria’s currency watch data also showed Naira against the Pound Sterling closed at N514.42/£1 and N438.70/€1 respectively at the official market.

Since the Central Bank of Nigeria (CBN) halted providing foreign exchange (FX) to Bureau De Change (BDC) operators in the country, they have devised other methods of purchasing from official markets.

It has been a profitable business for individuals who have been able to bypass the CBN’s numerous restrictions in order to get dollars at official rates.