Lagos, Nigeria – The exchange rate between the Nigerian naira and the US dollar has soared to an unprecedented N860/$1 on the black market due to surging demand. Moreover, the exchange rate for “inflow,” representing forex sold via bank transfers, is even higher than N860/$1.
The peer-to-peer (p2p) marketplace Binance has also witnessed a rise in the naira-dollar exchange rate, reaching N850/$1. Crypto traders on p2p exchanges are employing stable coins as a medium of exchange for trading the dollar against the naira, with some quotes reaching as high as N852/$1.
This surge in exchange rates comes as a continuation of a downward trend observed over recent days, with some suggesting that speculators are contributing to the depreciation. However, several BDC operators indicated that the rates may be speculative since most traders lack supply, and they cannot confirm if trades are being consummated at the quoted rates.
Multiple factors have been attributed to the depreciation in the exchange rate, including increased demand related to summer holiday travels, Nigerians looking to relocate, and students preparing for the upcoming September school season. Additionally, speculators are converting naira savings into dollars to protect against currency depreciation and inflation.
