The United States dollar appreciated against the naira in the black market on Monday after Bureau De Change operators increased their asking price by N75.
Traders in the parallel market had to cough up as much as N865 for $1, indicating the naira fell by -9.49 per cent in value during trading of the American currency.
A day before, the Bureau De Change operators had sold the dollar at a rate of N790. This reflects surge in demand for USD in the black market which had been reported could be the channel used by persons hoarding the naira.
The rise in demand for dollar and the value followed the confirmation from President Muhammadu Buhari that the redesigned of naira had his support – a statement that assured the release of the redesigned naira notes will be happen in December.
Ripples Nigeria had reported that President Buhari said the two months notification regarding the re-issue of new notes will only affect persons hoarding naira illegally.
To avoid scrutiny, Ripples Nigeria understands that illegal hoarders will avoid official forex market, and the Chairman of Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa, had stated that individuals with illicit local currency could use the parallel market as dumping ground in exchange for dollars ahead of the December 15 release date for the redesigned naira notes.
As a result, demand for dollar will rise, causing the value to appreciate against naira, and enabling Bureau De Change operators to continue charging at a premium.
Meanwhile, in the official foreign exchange market, the naira appreciated against the dollar, closing Monday with N443/$1, in contrast to the N443.20/$1 the Nigerian currency opened with.
The naira increased in value by 0.04 per cent after $40.05 million worth of transactions were conducted on the official market’s Investors and Exporters window.
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