Naira gains against dollar after falling to N900/$1
Five days after falling to N900/$, the naira has made a comeback rising to N730 /$. The local currency is now in a better position than it was before the redesign announcement.
The naira is trading around N730/$ days after it hit an all-time low due to the massive market speculation reaction to the news of its redesign. This is according to information from black market traders who spoke to Nairametrics.
Five 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.
The appreciation explained: Abu, a black market operator who resides in Lagos, said that the market had come back to normalcy, and the initial depreciation was caused by panic buying.
“After the CBN redesign announcement, we received so much demand for the dollar that came out of nowhere. This was because petty people panicked about the news of the creation of the new Naira note.”
“I always knew it would come down, but I never thought it would be this fast.”
Bola, another black market operator, said the market is too violate to predict, but he was happy about the appreciation.
He said: “The forex market is becoming increasingly difficult to predict because it is too volatile. I can’t say for certain what is causing the movement of the Naira, but I am pleased it’s appreciated.”
Nigerians react: Some people have had a lot to say about the reported appreciation of the naira. One of the is financial and investment expert Kalu Aja who acknowledged the massive appreciation by simply tweeting “Naira is rising”.
Daniel Regha complained about the increase in inflation caused by the sharp depreciation of the Naira.
He said: “Dollar to the naira exchange rate is dropping, but the prices of goods & services in Nigeria remain the same (extremely high). So I don’t see how this news is worth celebrating. Besides, the exchange rate was much lower before the APC took over. This isn’t a win for the APC or CBN.”
Another Twitter user, @ManLikelcey, was optimistic about the fate of the naira. He said: “Dollar to Naira dropped to 680, and it’ll drop more in the coming weeks.”
