As the naira dropped to an all-time low of N1,099.05/$, the official foreign exchange (FX) market oscillated lower on Friday, narrowing the difference/spread between the official and the parallel market rates to N99 per dollar, according to statistics from the FMDQ Exchange.
On Friday, the black market pricing was N1,190 to the dollar. With the current exchange rates, the difference between the two FX market divisions is N99, down from N1.83 per dollar on June 21, 2023, following the Central Bank of Nigeria’s unification of the exchange rate windows (CBN).
The difference between the official spot segment and the parallel market was further narrowed to N22/$ by the spot trading rate. As of December 7, 2023, the spot rate was N1,176, and as of December 8, 2023, the black market was N1,198/$.
On June 14, 2023, the CBN closed all market sectors and created the Nigerian Autonomous Foreign Exchange Market (NAFEM), which was formerly known as the Investors’ and Exporters’ (I&E) currency window.
In a related move, the CBN has cautioned the public about the proliferation of fake banknotes, particularly those with greater denominations, which some people are using for transactions at food markets and other commercial establishments in the nation’s largest cities.
To be clear, any individual who falsifies, makes, or counterfeits any bank note or coin issued by the Bank that is legal tender in Nigeria faces an offence that carries a minimum 5-year prison sentence. This is stated in Section 20(4) of the CBN Act (2007) as amended.
In order to seize counterfeit Naira banknotes, apprehend and prosecute those who engage in counterfeiting, the CBN stated that it works closely with pertinent security and financial organisations.
The public is also urged to report anyone they believe to be in possession of counterfeit Naira notes to the Central Bank of Nigeria branch that is closest to them, via contactcbn@cbn.gov.ng, or by going to the nearest police station.
In the meanwhile, the public, Bureau de Change, Financial Houses, Deposit Money Banks, and all those involved are urged to exercise more caution and take all required safety precautions to limit the acceptance and distribution of fake currency.
In addition, in order to reduce the possibility of counterfeit banknotes spreading, the general population is urged to use electronic channels for daily transactions as an alternative to traditional payment methods.
It said, “To falsify, make, or counterfeit any bank note or coin issued by the Bank which is legal tender in Nigeria shall be an offence punishable by a term of imprisonment of not less than five years.”
