Exchange rate quotes spike to N860/$1 on black market today 20th July 2023

The exchange rate between the naira and dollar is being quoted for as high as N860/$1 on the black market.

This is according to information gathered from some BDC operators who attribute the depreciation to increased demand. They also suggest the dollar is facing a “demand onslaught.”

The exchange rate for “inflow” which represents forex sold via bank transfers even quote higher than N860/$1.

The exchange rate between the naira and the dollar also rose to N850/$1 on the peer-to-peer (p2p) marketplace Binance.

Afternoon Checks by Nairametrics reveal the rate quoted by crypto traders fell to this level in continuation of the decline observed over the last few days.

Traders on P2P exchanges use stable coins (a cryptocurrency) as a medium of exchange when trading the dollar for the naira. Some quotes were as high as N852/$1

Market Uncertainty: Several BDC operators who spoke to Nairametrics indicated the rates may be speculative as most traders did not have supply.

  • Some also suggest they cannot confirm that trades are being consummated at the level of rates being quoted.
  • Another trader who spoke to Nairametrics stated the market is “crazy” as no one knows for sure what rate to buy or sell.

Nairametrics reached out to the President of (ABCON) the umbrella body for BDC Operators, Aminu Gwadabe who also confirmed the situation.

According to him the reason for the spike in rates was due to a “demand onslaught” indicating that as such rates were being quoted for N850 to buy and N860/$ for sell. 

  • “The demand is much, everybody wants dollars and the people that have are not selling” 

Some of the demands being blamed for the exchange rate depreciation include demand associated with summer holiday travels, Nigerians looking to relocate and students preparing ahead of the September school season.

Speculators are also thought to be converting some of the naira savings into dollars to avoid losing value to currency depreciation and inflation.

This is a developing story check back for updates…..