Naira falls to N1,099/$, closes gap to parallel market value

The official foreign exchange (FX) market on Friday oscilated downwards, thereby shrinking the  the gap/spread between the official and the parallel market rates to N99 per dollar as naira fell to an all-time low of N1,099.05/$ according to data from the FMDQ Exchange.

The black market rate was N1,190 per dollar on Friday. With the current rates, the gap between the two segments of the FX market has closed  to N99 compared to N1.83 per dollar on June 21, 2023 after the unification of the exchange rate windows by the Central Bank of Nigeria (CBN).

The spot trading rate further closed the gap between the official spot segment and the parallel market to N22/$. The spot rate was N1,176 as of December 7, 2023 while black market was N1,198/$ as of December 8, 2023.

The CBN on June 14, 2023 collapsed all segments of foreign exchange markets into the Nigerian Autonomous Foreign Exchange Market (NAFEM), formerly, the Investors’ and Exporters’ (I&E) forex window.

In another development, the CBN has advised the public to be wary of the circulation of counterfeit banknotes, especially higher denominations, by some individuals for transactions in food markets and other commercial centres across major cities in the country.

For the avoidance of doubt, Section 20(4) of the CBN Act (2007) as amended, states that: “It shall be an offence punishable by a term of imprisonment of not less than 5 years for any person to falsify, make or counterfeit any bank note or coin issued by the Bank which is legal tender in Nigeria.”

The CBN said it is in constant collaboration with relevant security and financial agencies to confiscate fake Naira banknotes, arrest and prosecute counterfeiters.

Members of the public are also encouraged to report anyone suspected of having counterfeit naira notes to the nearest police station, branch of the Central Bank of Nigeria or via contactcbn@cbn.gov.ng.

Meanwhile, all Deposit Money Banks, Financial Houses and Bureau de Change and the general public are enjoined to be more vigilant and take all necessary precautionary measures to curtail the acceptance and distribution of counterfeit notes.

Furthermore, the general public is encouraged to embrace alternative modes of payment, echannels, for day-to-day transactions to mitigate the risk of spreading counterfeit banknotes.

“It shall be an offence punishable by a term of imprisonment of not less than 5 years for any person to falsify, make or counterfeit any bank note or coin issued by the Bank which is legal tender in Nigeria,” it stated.

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