The naira-to-dollar conversion rate on the black market has been listed as high as N860 to $1.
This information was obtained from certain BDC operators who blame the depreciation on rising demand.
Additionally, they claim there is a “demand onslaught” against the dollar.
The “inflow” exchange rate, which corresponds to foreign currency traded via bank transfers, even quotes a greater rate than N860 to $1.
On the peer-to-peer exchange Binance, the naira and the dollar traded at a rate of N850/$1.
The rate cited by cryptocurrency dealers continued its recent downward trend by dropping to this point.
When exchanging the dollar for the naira on P2P exchanges, traders utilize stable coins (a cryptocurrency) as the means of exchange. Some quotations reached N852/$1 in price.
According to several BDC operators, the rates could be speculative because the majority of merchants lacked supply.
The market, according to another dealer is “crazy” because no one is certain of the best rate at which to purchase or sell.
The president of ABCON, the umbrella organization for BDC Operators, Aminu Gwadabe, has acknowledged the situation.
He claimed that a “demand onslaught” was to blame for the rate increase and that as a result, rates were being given for N850 to purchase and N860/$ for sell.
Some of the demands attributed to the depreciation in the currency rate include the desire for travel over the summer holidays, Nigerians wishing to relocate, and students getting ready for the start of the new school year in September.
Speculators are also suspected of changing some naira savings into dollars in order to protect them from inflation and currency depreciation.
