Currency traders are saying it is likely naira hit 1,000 per dollar by the end of the year. The market operators share their views on their projections for the value of the naira on the back of the rapid depreciation that occurred in previous weeks.
Various reports suggest the exchange rate traded at about #800/$1. It was also revealed that some black market operators still sell for #775 and #790. As of Sunday, the P2P market still traded at about #782.9.
Also read: Naira Crashes to #740/$1 on Black Market
Naira: Why #1000/$1
Most of the operators are saying the exchange rate will probably hit #1000 to the dollar if the demand pressure does not subdue.
“At the rate, we are going it is very likely the exchange rate will drop further and might get to #1000 by December if more people buy than sell,” one trader said.
Another research reveals that the exchange rate could even get to #1000/$1 before Christmas due to further demand pressure. This pressure is triggered by those who need it for their vacation abroad. One of the traders speaking said,
“The number of Nigerians with family abroad is not much, so most of them will need to buy dollars so they can go and spend X-mas with their families abroad.”
Most of the traders who were also interviewed by nairametrics also shared the same view. Some however disagreed by saying that Nigerians returning home might ease pressure in December.
Recall the Central Bank of Nigeria (CBN) is redesigning 200, 500, and 1000 Naira Notes and will start distribution on December 15, 2022.
Further explaining, he said the new and existing naira notes shall remain legal tender and circulate together until January 31, 2023. This is when the existing currencies shall seize to be used.
Also read: CBN to Redesign 200, 500, and 1000 Naira Notes
Final Notes
We however hope the pressure is eased because things are expensive enough with Nigerians finding it difficult to get by. More increments might put the country in great panic and worry. Above all, it will render the naira irrelevant.
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