CBN's Naira Redesign Plan Spikes Race to Buy Dollars, Black Market Dealers Sell for up to N850/$1

• Nigerians continue to rush for dollars as the naira weakens across markets
• The rush for the naira has sparked the continuous fall of the Naira, especially in the black market
• The rush to get rid of the old naira notes before the January 31 deadline is also driving the rush to acquire dollars

Barely a week after the Central Bank of Nigeria announced the redesign of some denominations of Nigeria's currency, Nigerians have increased the race to acquire dollars as the United States' currency continues its dominance over the naira.

At the official market, the exchange rate closed at N446/$1 on Tuesday, 1st November 2022, but at the black market, the exchange rate between the naira and the US dollar is averaging N810/$1. In the afternoon of Wednesday, November 2, 2022, the naira had dropped to about N830/$1.

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According to Bloomberg, some black market dealers in some parts of the country are selling for as high as N850/$1 due to a surge in demand for the dollars. The recent surge is not unconnected to the recent announcement by the CBN to redesign and release new prints of the N200, N500 and N1000 notes.

A BDC operator known as Alhaji Abdullahi Abu, who spoke with Legit.ng said that in the last few days, a lot of people have been buying dollars from them at the rate of N855/$1. "We have had more people coming to buy the dollar than sell the dollar. The rate seems to be changing by the day, but today I sold for N855 to a dollar," Abu said.

While announcing the plan, the CBN Governor, Godwin Emefiele disclosed that about 85% of currency in circulation is outside the vaults of the Nigerian banks and so, the redesign will mop up excess cash and help the apex bank control supply better.

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Deadline for depositing naira notes with banks

The rush to get rid of the old naira notes before the January 31 deadline is also driving the rush to acquire dollars. Many have lost confidence in the value of the naira and are therefore hoping to store their liquid assets in a stronger and more stable currency, which is the dollar.

The apex bank has also disclosed that the new naira notes which will be embedded with security features will emerge in circulation from Thursday, December 15, 2022.

Experts have shared divergent views on the plans by the CBN to redesign the naira. While some have commended the apex bank, stating that it would curb the counterfeiting of the naira, others have condemned the plan, stating that it could lead to a fall in GDP.

EFCC raid Bureau de change operators in Abuja

The operatives of the Economic and Financial Crimes Commission raided the offices of Bureaux de change operators in Abuja.

According to reports, several black market currency dealers were arrested in the course of the raid. It was also reported that the EFCC operatives who were fully armed were seen dragging the black market currency dealers into waiting vans, as bystanders gathered to watch the drama.

Source: Legit.ng