Experts had predicted that by the end of March 2024, the exchange rate of the dollar to the naira would have risen to ₦2,000 in the black market.
We are still in February and exchange rate in the black market is just ₦120 short of reaching ₦2,000.
Like the exchange rate, the price of food is constantly on the rise and the price of petrol is about to tow the same lane.
Is there any hope for the common man that the economy will rise again?
If you have dollar now in your account or at hand, please treat it with a lot of dignity.
And if you don’t have, the best we can advise is to buy some to hedge the inflation rate. The rising rate is astronomical.
Have You Read: Official Market: Naira Recovers By ₦46.73 Against Dollar
On Tuesday, naira weakened to an all-time low of ₦1,825. Meanwhile it is heading towards ₦2,000 at the parallel market.
Strong Demand Against Weak Supply
This represents 6.30% lower than the ₦1,710 to 1USD closed on Monday at the black market, also known as the parallel market.
Also, the naira depreciation followed a strong demand by the end users. This is fuel by the shortage of the greenback across foreign exchange markets.
A visit to currency dealers popularly known as Bureau de Change operators in Lagos, revealed that the dollar is scarce.
According to our source, “there is no dollar in the market and the little ones that come to market are highly-priced”. This statement indicates the effect of the law of demand and supply on the currency.
Meanwhile, the Euro to Naira is already trading at ₦2000 buy and ₦1,940 sell in the black market.
Also, the Pound to Naira exchange rate as of Tuesday, February 21, 2024, is ₦2350 buy, and ₦2340 sell at the black-market rate.
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At this rate, it is not known if the planned measures of the Central Bank of Nigeria will have any positive effect on the exchange rate.
