The free fall of the naira against major world currencies is becoming a full fledged nightmare to Nigerians. We wake up everyday hoping that the naira does not crumble further, but unfortunately it is out of our control. Just yesterday the 17th of February 2016, $1 was sold for N385 before it corrected a little today the 18th February 2016 to N370 per $1.

Now the official inter bank rate is N199 per $1 and that has not changed as at the time of filling of this article. The banks are bound to sell dollars at the international bank rate which is the CBN official rate.

While the parallel market are the local beareau de change we see along road (people also call it black market of Aboki FX). This people are registered with the CBN and are licences to trade FX locally. Now most times the BDC is always higher than the inter bank market, this is because they officially sell dollar to individuals for personal expenditure of mini importation business. Banks don't sell dollars to people who want it for personal use.

Here comes the big question. What rate does Nigerian banks use for people doing online shopping, payment of school fees and other international payment with their cards? On Monday the 15th February 2016, I made a purchase of domain name and paid with my GTB naira MasterCard and I was charged the parallel market rate of about N330 per $1, I got upset and vowed never to use my GTB cards for online international PoS again. The next 2day I decided to use my Stanbic IBTC card to pay for my Facebook advert. When I was done I found out that they charged me the rate of over N290 per $1.

Is the CBN no longer monitoring these banks? Or they have their interest in all these financial issues. Is it now an open market where no regulation and every bank can do what they want? The federal government is seriously fighting the $2.1 billion arms deal scam while banking institutions are seriously enriching themselves at the expence of the people's happiness and well fare.

I urge the CBN to investigate its banks and bring to book the banks that default it. And let banks sell dollars at the official rate and safe the country from economic recession.

God save Nigeria.

Source: http://www.talkasset.com/which-rate-do-nigerian-banks-use-inter-bank-rate-and-parallel-market/#.VsX8qR8o-f1

Black market rates: https://www.practicalbusinessideas.com/dollar-to-naira-exchange-rate-today/