Traders blame Binance as naira crashes to N910 to a dollar, experiences worst performance under Tinubu

The exchange rate between the naira and the dollar fell as low as N910 to a dollar on the black market.

Dealers quoted rates as high as N910 on Wednesday, August 9, 2023, as they continue to cite higher demands as the reason.

Naira loses highest value in August

The Nigerian currency depreciated by 4.37% on the parallel market in the first week of August. The Exchange rate dropped by 11.5% in the whole of July 2023.

On Tuesday, August 8, 2023, the exchange rate crossed the N900 to a dollar threshold for the first in history and has continued on the trajectory.

However, higher demands have piled pressure on the dollar on the parallel market as bidders demand higher bids.

The British pound and euro also increased to N1,171 and N872, respectively.

Investigation reveals that the recent Central Bank of Nigeria policy mandating banks to demand Tax Clearance from customers seeking foreign exchange has exacerbated the forex issue.

According to a Forex expert, Magdalene Ohire, the policy is working against the plan of the Nigerian government to unify the foreign exchange windows.

She said the parallel market is slipping further away from the official market and destroying plans to close the gap.

She said: "Currently, the gap between the official and parallel market is over N150, and dealers will prefer to sell their dollars to the highest bidder, in this case, the black market operators."

She revealed that the policy is a wedge in the plans to unify the foreign exchange windows.