Dollar crashes to 1,595 on black market

The naira gained further on Thursday as the dollar crashed to N1, 595 on the parallel market, popularly called black market.

This represents 0.94 percent (N15) gain over N1,610 quoted in the morning trading on the black market.

Against the rate exchanged on Wednesday, the naira gained 1.57 percent or N25 compared to N1,620 quoted on Wednesday on the black market.

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In the latest testament to the CBN’s ongoing commitment to support the proper functioning of the foreign exchange market by enhancing liquidity when necessary, the apex bank offered $876m to fulfil bids submitted by customers at an auction concluded on Wednesday, August 7, 2024.

In line with its pledge to provide transparent access to foreign exchange for all legitimate customers, the CBN’s leadership has introduced an additional mechanism through the Retail Dutch Auction System (RDAS) to directly facilitate FX sales to end users.

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This approach aims to foster a more transparent market, reducing information asymmetry and supporting price discovery. It complements the two-way quote system deployed over the past few months to enhance liquidity in the interbank market, through which over $305 million of foreign exchange has been sold to authorised dealers in the last three weeks.