Naira-Dollar Exchange Rate Hits Record High of N860/$1 on Black Market as Demand Surges
Bureau De Change (BDC) operators have reported an unprecedented surge in the exchange rate between the naira and dollar, reaching as high as N860/$1 on the black market. The depreciation is being attributed to a substantial increase in demand, leading to what some are describing as a “demand onslaught” on the dollar.
Even the exchange rate for “inflow,” representing forex sold via bank transfers, is quoting higher than N860/$1. Additionally, on the peer-to-peer (P2P) marketplace Binance, the naira-dollar exchange rate has risen to N850/$1.
Afternoon checks conducted by Nairametrics reveal that the rate quoted by crypto traders has declined to this level, continuing the observed downward trend over the last few days. Traders on P2P exchanges are using stable coins (a cryptocurrency) as a medium of exchange when trading the dollar for the naira, with some quotes going as high as N852/$1.
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Market uncertainty prevails, as several BDC operators suggest that the rates may be speculative due to limited supply. Some traders are finding it difficult to confirm whether trades are being executed at the quoted rates, resulting in a sense of confusion in the market. The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, confirmed the situation, stating that the spike in rates is a result of the overwhelming demand, with quotes ranging from N850 to buy and N860/$1 to sell.
Various factors are being blamed for the exchange rate depreciation, including the demand associated with summer holiday travels, Nigerians looking to relocate, and students preparing for the upcoming September school season. Speculators are also believed to be converting their naira savings into dollars to safeguard against currency depreciation and inflation.
This is an ongoing story, and updates will be provided as developments occur. Please check back for further information.
