Naira rises to N752/$ on the black market as dollar demand declines
On Thursday, the Naira strengthened to N752 per dollar in the so-called black market, a parallel area of the foreign currency (FX) market.
Comparing the current value to the N766 it traded last week, that represents a gain of N10, or 1.3 percent.
BDC owners who talked with Opagnews in Lagos’ Victoria Island neighborhood said they buy dollars at N745 each, profit by N7, and then sell at N752.
The street vendors blamed the weak demand for dollars among consumers for the local currency’s rise.
Two days before the election, there has been no demand. There has been no demand since the election was over. Although there are dollars available in the market, people are not buying, one merchant told Opagnews.
The local currency increased by 0.14 percent to N461.35/$ on Wednesday at the investors and exporters (I&E) FX window, according to statistics from the FMDQ OTC Securities Exchange, a platform that controls authorized foreign exchange trading in Nigeria.
On Wednesday, there were $98.60 million worth of transactions at the exchange, up 105.03 percent from the $48.09 million saw on Tuesday.
People were encouraged to deposit their old notes before January 31, 2023, when they would no longer be accepted as legal cash, according to Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), who revealed the proposal to redesign the N200, N500, and N1,000 notes in October 2022.
Despite the fact that the deadline was extended to February 10, many Nigerians are having trouble getting their hands on the new naira notes.
President Muhammadu Buhari reportedly apologized to Nigerians for the pain brought on by the naira redesign scheme, according to a recent story from Opagnews.
“I apologize for the inconvenience the naira change has brought you. It was done to strengthen the nation’s economy, not to put anyone through suffering.” according to Buhari
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