Economy

Naira Crashes Further Low, Exchanges For N865 to a Dollar Amid Fears of CBN Banknote Redesign Plans

Saturday, November 05, 2022 at 6:25 AM by Pascal Oparada

The naira set a new record on Sunday, October 30, 2022, when it crashed to N865 to a dollar
Checks by Legit.ng showed that the local currency depreciated that much as Nigerians flooded the market with the local currency
Analysts say this is not unconnected with CBN's plan to redesign the naira as hoarders move to exchange them for dollars

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Barely 24 hours after the naira fell to a record low of N800 to a dollar on Saturday, October 29, 2022, the Nigerian currency crashed further to N865 to a dollar on the unofficial parallel market.

Legit.ng findings on Sunday, October 30, 2022, revealed that the black market dealers around Allen Avenue, Ikeja and Ogba in Lagos exchanged the naira at N865 and some cases, N870 to a dollar.

Too much naira chasing the dollar

The black market operators say there is a scarcity of dollars and other foreign currencies.

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According to the operators, there is a glut of the local currency in the market which is crashing the naira's value hourly.

"We don't have dollars but we have enough naira now. I can tell you that if you cough now, I can dash you N1 million," Ishaya Abdul told Legit.ng on Sunday.

He said a lot of people bring their money to exchange for dollars.

Abdul's statement further confirms experts' opinion that the plan by CBN to redesign the naira would further crash the currency as hoarders move to store their money in dollars to avoid being caught unaware by the bank's plans.

Down it goes

Bloomberg reported that the Nigerian currency plummeted to a record low against the dollar on Friday, October 28, 2022, two days after the Central Bank of Nigeria announced plans to redesign naira notes.

The naira fell on the official market to a record N442.62 to the dollar before it regained some ground. In the parallel market, also known as the black market, the naira exchanged N780 to the dollar from N787.9 to the crypto USDT as of 3:41 p.m local time.

The CBN announced on Wednesday, October 26, 2022, that it plans to redesign the N200, N500 and N1,000 notes by December 15.

According to the CBN, the move will curtail Nigeria's currency hoarding, security, counterfeiting, and inflation.

CBN, NIBSS move to unify payments through National Domestic Card Scheme

Legit.ng reported that Nigeria’s apex bank, the Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS), including the Bankers Committee, will float a national card scheme to enhance the payment system in Nigeria.