Stupidity is when you keep on reporting an illegal black market at the detriment of the official market for forex.



Easy access to information is a very key factor to strive a market.The black market is striving simply because of easy access to information provided by useless media.

It is only in Nigeria an illegal market rate takes the headline


Reportage of an illegal market rate should be criminalised at once,it is serious economic sabotage.

You can report the price of gari or rice at any market,because there is no official market for them,not for forex where there is an official market and an illegalised black market.

We destroy our economy ourselves and blame the government.

Has any body pondered to ask why despite the banks looking for customers to buy forex at the official market rate of N315,the black market is still striving at N420?

How can an illegal market whose transaction volume is even less than 5% of the total forex transactions in an economy,determine the true value of the Naira?

The answer is simple:manipulated information.

In relative terms,and because of the useless media we have,more people have information of the black market than the official market,so more people are still patronising the black market!

Just as a simplified example to illustrate how information strives a market:




For a week,there had been no general information in the media on the black market rate.Mr Wazobia leaves in Mushin and needs forex badly this morning.He calls his Aboki black market dealer who gives him a rate of N500.He aslo calls KABIRU who gave him Another rate of N515.Another seller,Ismaila,can decide to sell his own dollar at N389,depending on the source of his money,to beat Kabiru and Aboki.

Information concerning the actual black market rate is not available to Wazobia,so he is most likely to approach Ismaila.

But assuming just before dashing out to meet Ismaila,Wazobia tunes it to channels TV and gets information about the official bank or BDC rate of say N315. Your guess is as good as mine!

So for the forex buyer,the information about the actual black market rate is only limited to the number of sellers he can contact by phone or physical visit.

Normally if there is information about the general black market rate in the media,Mr wazobia is most likely to compare the rate given to him by Aboki,Ismaila and Kabiru,with that of the general rate reported in the media,before deciding whether to buy or not.

Even if forex is scarce and not available at the banks or BDCs,if information is not available,Ismaila will continue to beat Aboki and Aboki in terms of pricing,thereby ensuring that even at the black market ,the Naira attains its real value .

Has any body bothered to ask how the very artificial black market rate is determined?

Seun can do Nigeria and Nigerians a very big favour ,by banning the release of the black market rate as an headline on Nairaland.

I just pray that Seun respond to this patriotic call and social responsibility.

Really, did you just say this? Try purchasing forex at the bank today and see if it's available.