Naira trades N575/$1 at parallel market as abokiFX clears forex information
Bureaux De Change operators (BDCs), popularly known as ‘abokis’, on Monday quoted naira at N575 to the dollar at the street market.
Checks by TheCable showed that the naira currently exchanges N575 to the dollar at three different markets in Lagos, the country’s commercial nerve centre.
The figure is higher by N1 or 0.2 percent from the N574 it traded last Friday.
A parallel market (street market) is characterised by noncompliant behaviour with an institutional set of rules.
Last week, Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), said the only recognised foreign exchange market is the Importers and exporters (I&E) FX window.
Emefiele talked tough over illegitimate traders at the parallel market, saying they are causing confusion and manipulating the foreign exchange market.
He had stopped dollar sales to the earlier authorised BDCs and directed banks to meet legitimate forex demands.
The CBN chief also said the monetary authority is investigating Oniwinde Adedotun and abokiFX Limited over “illegal foreign exchange transactions” and its mode of data information.
AbokiFX is a web platform that reports movements in the foreign exchange market since as early as 2014.
Despite denying CBN’s allegations, abokiFX suspended parallel market data information on its platform — taunting with a clause: “We sincerely hope this suspension will lead to the Naira appreciation from next week”.
On Monday, abokiFX cleared forex data information from its platform.
At Ikeja, currency traders told TheCable that the dollar exchanges N575 while they purchase at N567/$1, leaving a gain of N10.
At Eko Hotel, traders sell at N578/$1, depending on the volume of the dollar a customer is willing to buy.
At the Marina BDC market, close to the Lagos branch of the CBN, the currency trades at the same rate.
“I sell at 575 and buy 565 per dollar,” a currency trader, simply identified as Musa at the Ikeja market, said on the phone.
“How many dollars do you want to buy… I can give you a discount if it is much.
“I just bought 2K dollars for 565 from a customer to sell at 575.”
When asked about the suspension of forex information on the abokiFX platform, another trader on the Island, Aliyu, said he doesn’t know any “online aboki”.
“We trade on the road. Walai, we have people in Ikeja, Abuja, Port Harcourt that give us rates every day. My Oga is close to top people too. So we get rates every day,” Aliyu said.
“It is the same rate you’ll see here, Ikeja, airports, and most places in Lagos. Except few that want to charge a higher rate, may be 576 or 578.”
Meanwhile, at the I&E window, the currency opened trading at N412 to the dollar.
The Federal Government of Nigeria should do something urgently to reverse the dollar to Nigeria rate. The way it is going, it may reach N1000 before the end of the year. One of the ways the Government should adopt is to promote manufacturing to reduce our dependency on importation. Also, diversification of the economy can be very helpful too. Instead of pointing fingers and blames on the downfall of the economy, I think it’s time, the government waked up and start solving problems. That is their duty.
What’s the parallel market rate of pounds to dollars? Or Ghana cedi to dollars? Can you find it on google? Is only in lawless citizens country like Nigeria afterall you can buy dollars at airport in accra!! Why’s the cable announcing illegal rate on it’s newspaper? Is it that the management of the newspaper saying they’re not aware of the damage this is doing to the economy?
What’s patriotism in this?
Is not your fault, if CBN has announced that anybody that sale or announce any unofficial rate in Nigeria be arrested I know by now your newspaper company would have been shutdown!! Bunch of saboteurs
Hey slow down with your heavy advice. I hear arrested. Please tell us how they’d achieve that. Don’t you know why the black market exist in the first place? Oh you think I don’t want to buy dollars from the bank? It’s obviously not enough and that’s why the black market is there to bridge the gap. Sadly so but the only alternative is that cbn increases the limit. Then the parallel market will automatically cease to exist. My have cousins abroad, my uncle buys from the bank and also from the parallel market, he doesn’t do it happily but what can he do?
With adequate political will, importation of refined petroleum products can be reversed and we’ll start exporting same to at least our immediate African neighbors, after all this is what account for almost 50% of forex demand.
The government can set up an initiative where the current illegal petroleum products refiners can be made legit by simply extending invitations to them and giving them loans to set up modular refineries and recognizing them under pioneer taxation.
These guys can truly add value and their products sourcing, operation and financial reporting can easily be assessed by government instead of just burning their assets as being witnessed in South south states. Pilfering of crude and pollution of sooth will all due a natural death.
It’s time to think outside the box to save Nigeria
Its unfortunate and shameful to see this…blaming abokifx for currency value…its so disgraceful when people in power are this ignorant
Don’t direct your grievances at a newspaper company doing their job. They are reporting what they have seen and heard. That is what true journalism is about not feeding people with lies. Energy should be directed at solving the problem not attaching does reporting the situation. When things improve they will give us updates. We want the truth and only the truth. If dollar is selling at N575 then no one should lie to us that it’s selling at N412. That is the real sabotage.
Ago, black market is no longer recognized, they should stop publishing that flatulent rate on websites.
The Federal Government should do something urgently to reverse the dollar to Nigeria rate. Am beginning to imagine how life will be like if the Nigerian Naira is equivalent to the Dollar. Things will be cheaper. Please, the Government should do something about it before it is too late. Thanks
This is not practicable mate.
If you took a loan of 1 million naira last year and 1$ = 1naira this year, how do you imagine payback will be possible?
Can you imagine the number of defaults that would trigger in the economy.
Also, removing a few zeros won’t do it, as was considered in the past – it will still fall again provided the fundamentals have not been addressed.
is there any website for update on the price rate currently