Naira Bounces Back, Appreciates by Over N200 Against US Dollar in Hours at P2P Market

Naira Bounces Back, Appreciates by Over N200 Against US Dollar in Hours at P2P Market

  • Nigerian currency recorded an unexpected piece of good news in the P2P segment of the foreign exchange market
  • In just a matter of hours on Friday, the value of the Nigerian currency increased by over N200 against the US dollar
  • It is unclear why the dollar crashed, but it might be related to recent actions set to be taken by the federal government

Speculators hoarding the dollar were given a rude awakening on Friday, October 27, 2023, as the naira, within hours, appreciated by N166 to the dollar in the Peer to Peer market.

Financial technology companies and cryptocurrency companies mainly use the P2P market.

Naira to dollar exchange rate
The federal government is ready to implement new punishment. Photo credit: Presidency
Source: Facebook

Checks by Legit.ng show that the exchange rate of the naira, which began on Friday, October 27 at N1279/$, is trading at N1,070 as of the time of this report.

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Naira's free fall continues as black market traders sell one dollar above N1,300

This represents a 16.34% or N209 improvement after just a few hours of trading, resulting in substantial losses for many traders who had paid over N1,300 for a dollar.

The market is closely monitoring the next steps of President Bola Ahmed Tinubu's administration.

Bloomberg reports that Finance Minister Wale Edun announced an expected $10 billion inflow in the coming weeks to improve liquidity and stabilise the naira.

Additionally, the government plans to impose taxes on foreign exchange transactions outside banks and criminalise speculative activities.

More update on naira

Meanwhile, AbokiFX, a website that tracks naira exchange rates in the black market, has stopped displaying rates.

In 2022, the website took similar actions after the former Central Bank of Nigeria Governor, Godwin Emefiele, accused it of influencing the continuous depreciation of the naira.

Read also

FG to allow Opay, PalmPay, PiggyVest, other fintech participate in Forex trading

Only time will reveal the future of the naira in both the official and black markets.

"No more N1k": BDC operators agree on new dollar to naira exchange rate

Legit.ng also reported that Bureau de Change dealers want to crash the dollar across the country.

ABCON initiated the move in support of the CBN efforts to stabilise the naira at the foreign exchange market

The wide disparity between the black market and the official exchange rate has been a genuine concern for the CBN.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.