Dollar hits N860/$1 at black market amid increased demand

The exchange rate between the naira and dollar is being quoted for as high as N860/$1 on the black market following increased demand.

The exchange rate for “inflow” which represents forex sold via bank transfers is even quite higher than N860/$1.

The exchange rate between the naira and the dollar also rose to N850/$1 on the peer-to-peer (p2p) marketplace Binance.

Checks this afternoon reveal the rate quoted by crypto traders fell to this level in continuation of the decline observed over the last few days.

Traders on P2P exchanges use stable coins (a cryptocurrency) as a medium of exchange when trading the dollar for the naira. Some quotes were as high as N852/$1.

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Several BDC operators indicated the rates may be speculative as most traders did not have supply, while some also suggest they cannot confirm that trades are being consummated at the level of rates being quoted.

Some of the demands being blamed for the exchange rate depreciation include demand associated with summer holiday travels, Nigerians looking to relocate and students preparing ahead of the September school season.

Speculators are also thought to be converting some of the naira savings into dollars to avoid losing value to currency depreciation and inflation.