The exchange rate between Nigeria’s Naira and the United States Dollars has fallen as low as N700/$1 at the peer-2-peer forex market.
As of yesterday on the 26th of July 2022, The Nigerian Naira which was traded at N667/$1 has further lost its value in the foreign exchange market by 3.5%. This is as a result of the increase in the demand of foreign exchange market amidst sustained scarcity.
Peer-2-Peer Market Platform
The P2P market is a trading platform for small units of cryptocurrency USDT. It is a stablecoin that trades 1:1 with the U.S. Dollars.
Report from a Bureau De Change operator states how he sold at the forex market for N665/$1, which is a clear indication of the constant rising of the local currency.
In a conversation with a BDC operator at the Lagos International Airport, he said “I buy dollars from customers at the rate of N665/$1and sell it for N675/$1 showing a profit of N10 on every dollar.
Current Exchange Rate
Presently, the exchange rate for transferring dollars from a foreign country to Nigeria or a Nigerian account ranges between N665-680.
The governor of the Central Bank of Nigeria, (CBN), Mr Godwin Elefiele, has called on prestigious individuals and politicians to avoid the temptation of withdrawing Naira for the purpose of converting them into Dollars just for keeps.
He has described this act as illegal, capable of destroying the country’s economy and wasting the effort of the nation in restoring the foreign exchange scarcity to restore Naira back in the currency market.
Speaking with the press, Mr Godwin Elefiele said “the apex bank will put in place a formidable surveillance system that will track the illegal conversion of Naira to Dollar in the Nigerian financial system”
However, the fall in the rate of Naira to Dollars has been said to be as a result of the fragmented and disorganized state of the market.
External Reserve falls further
Also, the report reaching us about the nation’s external reserve states its downfall despite recording a 27 days consecutive appreciation. Over the week, the external reserve has lost $138.7 million after being declined for 5 days.
This could be a result of Nigeria’s floating exchange system which permits the Central Bank to intervene in the foreign exchange market to change the direction of the currency’s float.