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.
Checks by blazingreports.com 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.
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.
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.
Only time will reveal the future of the naira in both the official and black markets.
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.