Business
Naira Appreciates to N700/$1 At Black Market

Six days after falling to N900/$, the naira has made a comeback rising to N700 /$ at the black market.
The naira is trading around N700/$ days after it hit an all-time low due to the massive market speculation reaction to the news of its redesign. Even some black market operators in Ikeja Lagos who spoke to infoexpert24 said they buy at 690 and sell at N700 /$ as of Saturday morning.
Six days ago, an exchange rate of N900/$1 was a psychological torment only a few analysts expected to end soon. In other words, the naira’s miraculous rise was not expected to happen so quickly.
While announcing that the N1000, N500, and N200 naira notes would be redesigned, the Central Bank of Nigeria (CBN) gave Nigerians less than 100 days to “dispose” of the outdated banknotes they still had in their possession.
Although the goal of the monetary policy is to reduce the amount of money that is not in the banking system and control inflation, the naira is now in a worse situation than before.
Following the announcement, the local currency experienced its steepest drop against the US dollar on the black market. On October 26th, the naira was trading around N760/$1, and on November 6th, it was trading around N900/$1.
As a result of the massive currency speculation, the CBN collaborated with the EFCC to revoke BDC licenses. The Economic and Financial Crimes Commission (EFCC) raided black market operators in Lagos and Abuja a few days after the CBN announcement. Approximately 87 forex dealers were arrested in the Federal Capital Territory, Abuja, Lagos, and Kano.
The local currency is now in a better position than it was before the redesign announcement.
Do you see the naira gaining more against the dollar in recent weeks?…. Share your views with us in the comment section below.