Japan’s attempts to shore up the yen faced yet another setback as the currency continued its downward spiral despite a late intervention in New York trading.

Despite efforts by Japanese authorities to stem the yen’s decline, traders remained unfazed, indicating a growing skepticism towards the efficacy of such measures.

The yen, which had initially weakened as much as 1.1% against the dollar during Asia trading, stubbornly clung to its downward trajectory, inching closer to levels seen before the suspected intervention.

Speculations ran rife among traders regarding Japan’s involvement in the currency market after witnessing abrupt fluctuations in the yen’s value during the final stretch of the US trading session.

This recent development underscores a deepening challenge for Japanese policymakers grappling with the yen’s persistent depreciation.

Despite their best efforts, the market sentiment appears to be increasingly immune to intervention tactics, casting doubts on the effectiveness of such measures in the long run.

Shoki Omori, chief desk strategist at Mizuho Securities Co., weighed in on the situation, remarking, “Japan’s finance ministry likely intervened but couldn’t break 152, where investors used to be cautious.”

He further noted, “Now that authorities are seen as having stepped in for a second time but gave the impression that they cannot stop the yen cheapening trend alone, market participants will likely feel more comfortable to short yen.”

The prevailing sentiment among traders suggests a growing consensus that Japan’s interventions may be insufficient to halt the yen’s depreciation trend.

Despite the authorities’ concerted efforts, the currency’s plunge persists, signaling a broader challenge for policymakers in navigating the complexities of the global currency market.

As the yen’s decline continues unabated, market participants remain on high alert, bracing for further volatility in the days ahead.

The inability of intervention measures to reverse the currency’s downward trajectory raises questions about the effectiveness of traditional policy tools in an increasingly interconnected and unpredictable financial landscape.

In the face of mounting challenges, Japanese authorities may find themselves compelled to explore alternative strategies to address the yen’s persistent weakness.

Whether through unconventional policy measures or coordinated efforts with global counterparts, finding a sustainable solution to stabilize the yen remains a pressing priority for policymakers amid evolving market dynamics.

The bustling streets of Wuse Zone 4 in Abuja transformed into a scene of chaos and apprehension as the Economic and Financial Crimes Commission (EFCC) conducted a surprise crackdown on Bureau De Change (BDC) operators.

The operation, which unfolded on Monday, sent shockwaves through the financial district, leaving traders and residents bewildered.

Eyewitnesses recounted scenes of pandemonium as EFCC agents descended upon the area, swiftly apprehending an undisclosed number of BDC operators.

The raid, which occurred around noon, disrupted normal trading activities and prompted fear among the local populace.

Speaking on condition of anonymity, BDC operators confirmed the raid, expressing dismay at the sudden turn of events.

“EFCC just raided the market, arresting many operators. They arrested some persons seen on the street and even pursued some persons to their offices. We are still looking for N30,000 or N50,000 to bail those arrested on Friday yet they came again today,” one trader lamented.

The crackdown comes as part of the EFCC’s concerted efforts to combat illicit financial activities and restore stability to the foreign exchange market.

Last Friday, the anti-graft agency announced the arrest of 34 suspected currency speculators for alleged involvement in foreign exchange fraud, signaling a firm stance against financial malpractice.

However, the EFCC’s actions have stirred controversy, with some questioning the efficacy of such raids in addressing underlying issues affecting the Nigerian currency.

Despite these efforts, the naira opened the week on a negative trajectory against the United States dollar, signaling potential challenges ahead.

At the official market on Monday, the naira witnessed a significant depreciation, trading at N1,419 against the dollar, representing a loss of N58 or 4.3% from the previous trading session.

The decline underscores the persistent demand for the greenback amid economic uncertainties.

Currency traders at the Zone 4 market reported heightened volatility, with the dollar trading at N1,340 per dollar, marking a notable increase from the weekend rate.

Amidst the turmoil, traders like Abubakar Taura navigated the fluctuating market, capitalizing on the volatility to secure profits.

As of April 30th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,340 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,310 and sell it at N1,300 on Monday, April 29th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.

Black Market Dollar to Naira Exchange Rate

• Buying Rate: N1,340
• Selling Rate: N1,330