“No Supply of Dollar”: Naira Sets New Record, Crashes to Lowest at Unofficial Market
- The naira hit a new low on the black market, recording N1,175 in some markets
- According to the report, the situation is caused by the lack of dollar supply for travels
- There are indications that the free fall may be due to the demand for school fees, amongst others
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The naira hit a new low at the unofficial market on Thursday, October 19, 2023. Currency traders told Legit.ng that the naira plunged to N1,175 per dollar on Thursday in the black market.
Source: UGC
Dollars were exchanged at N1,150 in some sections of Abuja, N1,155 in some parts of Lagos, and N1,120 in other locations.
This suggests that from the N1,100/$1 closing on Wednesday, the naira has appreciated by N55 or N75 in less than 12 hours.
Naira slide affected by various factors
According to a BusinessDay report, the steep decline in the value of the naira in two days was caused by a mix of requests from 43 items restored to access foreign cash and demands for school fees, among others.
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Mohammed, who compiles data on informal currency trading in Lagos, told Bloomberg:
“Many Nigerians just want to stock dollars. There is no supply of the dollar, yet a lot of people are looking for it to travel or do business.”
The naira has been in free fall on the unofficial market, where it trades freely. The situation deteriorated further after currency restrictions on the official market were removed in June.
Meanwhile, the dollar was quoted at N782.68 on Thursday versus N790.68 on Wednesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
“No More N1,000/$”: Currency Dealers Send Message to CBN as Naira Hits N1,175 Per Dollar
Aminu Gbadabe, President of the Bureau de Change Operators of Nigeria, has asked the Central Bank of Nigeria (CBN) and the federal government to carry the currency dealers along in their plans to stabilize the naira, Legit.ng reported.
Gwadabe stated that achieving a stable, solid, and volatility-free exchange rate in Nigeria will need the complete participation of BDCs in the retail segment of the foreign exchange market.
He said that under the current CBN leadership, Nigeria can achieve a robust and stable exchange rate and build a highly liquid foreign exchange market that aids the domestic economy.
Source: Legit.ng
