For the first time in a while, the black market Naira appreciated against the US dollar by N7 or 0.79 percent, trading at N885/$1 on Sunday as opposed to the N892/$1 it was sold for on Friday. A calming of speculative activities in the parallel market had an impact on the strengthening of the native currency in the unregulated portion of the foreign exchange (FX) market today.
The larger denomination Naira notes—specifically, the N200, N500, and N1,000—will be revamped, the Central Bank of Nigeria (CBN) announced a few days ago. In order to convert their hidden money into dollars, hoarders were compelled to hurry to the black market and forgo the banking system. According to Business Post, the majority of these hoarders were eager to exchange their Naira for dollars as long as they received them in return.
The lack of foreign exchange in the nation has made this extremely challenging, allowing speculators to set prices at will. Last Friday, it was seen that some clients purchased dollars above N900 on the black market, but this newspaper indicated that the average price for the day was N892/$1. If the Naira strengthens further at the market window on Monday, it is uncertain. To exchange the Naira for at least as long as they received the US dollar in return.
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