After Tinubu’s meeting with CBN Governor, Dollar crashes to N790 at parallel market
According to the Platinum Times, the dollar on Tuesday fell to between N805 and N790 at the parallel exchange market.
From the time it was exchanged in the morning, at N925 to N930, until around 4:00 pm, when word of a potential Central Bank of Nigeria (CBN) intervention reached the Bureau De Change (BDC) operators, it started a gradual slide.
Recall that the CBN stated plans to make crucial choices to stop the naira’s decline in the coming days, which would cause the speculators to suffer substantial losses.
After meeting with President Bola Ahmed Tinubu at the Presidential Villa in Abuja on Monday, the acting CBN governor, Folashodun Shonubi, gave media a briefing at the State House and dropped the hint.
After striking N970 to the dollar earlier in the day, our correspondents at Allen Avenue and Bagada in Lagos have found that the BDCs are buying at N900 and selling at N910 at this time.
The BDCs are buying at N875 and selling at N905 to the dollar at the Wapa forex market in Kano.
Additional investigations at Zone 4 BDC’s market in Abuja showed how the development caught local money speculators off guard.
The dollar, however, started at N789/$ at the Investors and Exporters window, to a high of N799/$ and a low of N740/$, and ultimately concluded at N774/4, N10 higher than the N764/$ it closed the day before.
One of the money exchange operators who spoke to our reporter in response to the situation warned that the dollar may drop even further and that many individuals will lose money since they bought the dollar at a higher rate than it is being exchanged for.
According to a consumer who talked with Daily Trust, when he inquired about the exchange rate in the morning, he was informed that it was N930 to the dollar.
However, he said that when he went to swap it in the evening, he was informed that it had crashed. He continued, saying that although the first price he was given was N850, it collapsed to N790 in less than 30 minutes, leaving him with no other option but to exchange it at N790.
The fall has triggered a dramatic turn of events that will result in a significant loss for many persons in the parallel exchange market, according to Ibrahim Muhammad, one of the BDC operators at Zone 4 who spoke with Daily Trust on the phone.
“They have just sent the BDCs bidding eligibility list to us. Nobody can predict what will happen next.
“If this happens after the meeting, what will happen after the CBN comes up with a new intervention policy to shore up the Naira can just be imagined. So, for now, we are waiting to see what happens tomorrow. It may appreciate a little, but it may also crash further. It is still being exchanged between N800 and N790 as we speak”.