Finance

Abuja Black Marketers Shuts Down Operation

In a surprising move, foreign exchange black market operators in Abuja, including those at the bustling Wuse Zone 4 market, abruptly stopped trading on Thursday morning. 

They attributed their decision to instructions from their union and a significant depreciation of the Naira against the US dollar at the official market.

None of the traders approached was willing to exchange foreign currency.

Initially, they cited directives from the Association of Bureau De Change Operators of Nigeria (ABCON) to refrain from selling.

“The Naira just de go up,” explained one trader, requesting anonymity. “The official rate has fallen so much that it’s almost the same as what we offer here. There’s no profit in selling dollars anymore.”

The official CBN rate on its website closed on the last day of January at N1,356.883/$1 but the other official rate closed at N1,455.59 while the black market rate closed N1,450/$1.

This narrowing gap, driven by various economic factors, has significantly reduced the potential profit margin for black market operators, rendering their activities less lucrative.

The traders’ closure could have significant implications for the foreign exchange market.

While access to official channels for FX remains limited for many Nigerians, the black market has historically served as an alternative source, albeit at a premium.

Sponsored

Their sudden shutdown could create challenges for individuals and businesses reliant on these unofficial channels.

However, the development could also be seen as a positive sign for the CBN’s recent efforts to stabilise the foreign exchange market.

The narrowing gap between official and black market rates suggests increased confidence in the official market, potentially reducing demand for alternative channels.

The situation is fluid and could evolve rapidly. The CBN and ABCON are yet to issue official statements and the long-term impact of the traders’ closure remains unclear.

SPONSORED
Victor Alade

Recent Posts

Gunmen ∆ttack Soldiers At Checkpoint In Abia, K!ll Two (Video)

At least two soldiers attached to the Joint Task Force of Operation UDO KA have…

14 hours ago

Bad Roads: Edo Gov Urges Contractors To Return To Sites

Monday, Okpebholo, the governor of Edo State, ordered contractors to return to the sites and…

15 hours ago

FG Says Efforts Ongoing To Crush New Terror Group Lakurawa

The federal government has said it is putting measures in place to eliminate a new…

17 hours ago

Okonjo-Iweala: WTO To Meet For Selection Of Next DG

The World Trade Organization has said it would convey a special meeting of its General…

17 hours ago

Nigerian Navy Receives Three Augusta Helicopters

The Ministry of Defense has delivered three brand-new Agusta Westland 109 Trekker helicopters to the…

17 hours ago

NECO Confirms Payment Of 72,138 Examiners For 2024 SSCE

On Wednesday, the National Examinations Council declared that the 72,138 examiners hired as ad hoc…

18 hours ago