By the end of the year, it is anticipated that the black market exchange rate between the naira and the dollar may reach N1000/$1. This is according to black market traders who expressed their opinions about their projection for the value of the naira in light of the currency’s recent sharp fall. This fear however has continued to trigger more calls for crypto adoption that many perceive may help reduce the pressure on the Naira.
Despite the Central Bank of Nigeria’s move to redesign some denominations of the Naira, an effort that faced criticism from the federal ministry of finance may not help as foreseen by the CBN governor Godwin Emefiele.
Operators Nairametrics spoke to want to remain anonymous in this article for fear of suffering retaliation for expressing their opinions. Most of them believe that the naira’s daily devaluation could eventually reach the dreaded N1000 to the dollar by the end of the year.
Even though Nairametrics’ checks indicate some black market sellers are still selling at between N775 and N790/41, other media reports on Sunday imply the exchange rate traded at about N800/$1. On Sunday, October 30th, the P2P market was still trading at roughly N782.9 to the dollar.
The currency rate started the year at around N565 to the dollar and dropped to N615/$ by the end of June, depreciating by N50 in just six months.
However, it has lost value since July, falling from N615 to roughly N775 or N165 weaker in only roughly 4 months.
Nairametrics statistics show that the exchange rate passed the N700 threshold on September 2 and has since fallen sharply. About N735 to $1 concluded September.
If it ends October at N800, then the month will likely go down as one of the worst months of depreciation in history for the black market, considering that the currency is depreciating by a whopping NN65/$1.