New Notes Spikes Demand For Naira, Exchanges For N730 Per Dollar in The Parallel Market

• The naira appreciated significantly on Wednesday, November 23, 2022, after the new notes were unveiled
• It traded for N730 per dollar as against N770 sold the previous day in the parallel market
• Nigerians have expressed hope that the naira will rebound after the CBN is done with the new notes

Amid the unveiling of the new naira notes on Wednesday, November 23, 2022, by President Muhammadu Buhari, the local currency has gained about N40 against the US dollar.

Checks by Legit.ng along the Allen Avenue and Ogba axis in Lagos reveal a massive demand for the naira, leading to its appreciation.

New notes reason for high demand

Currency dealers in the areas visited said people are asking if the new notes are already available, and if not, they are ready to trade existing ones.

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Ishaya Abdul, one of the currency dealers, told Legit.ng that the demand has increased instead of people dumping the naira, as was the case a few weeks ago.

“I don’t know why people want the naira all of a sudden. Two weeks ago, we had an excess of the naira and few dollars.”

Asked why the surge in demand for the naira, Abdul attributed it to the newly redesigned notes.

“I think it has to do with new ones. People think they can be lucky to lay their hands on the new notes,” he said.

The local currency traded for N770 per dollar on Tuesday, November 22, 2022, showing a 1.9 per cent recovery.

Analysts have predicted the naira would rebound when the Central Bank of Nigeria finishes with the redesign.

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Others had expressed doubt about the naira rebounding following Nigerians’ appetite for the US greenback and other local currencies.

Tony Iwuoma, a Lagos-based journalist, stated that many Nigerians would rush for the new naira due to the new notes' enthusiasm.

“I am very sure about the naira recovering, maybe not back to what it used to be seven years back, but there is going to be a significant recovery. The naira will survive,” Iwuoma said.

Mixed reactions trail new notes

There have been mixed reactions about the new notes, with many saying the difference is just the colour swap and nothing more.

Nigerians have waited with bated breath for the unveiling of the new notes whose circulation CBN said would backdate it.

Godwin Emefiele said during the Monetary Policy Committee meeting of the apex bank on Tuesday, November 22, 2022, that the bank would no longer wait for the December 15, 2022, date to launch the new notes.

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New naira notes: Banks extend banking hours to 6 pm, Saturday banking, new notes to be unveiled earlier

Legit.ng reported that many Nigerian banks have started banking operations on Saturdays, following in the steps of Fidelity Bank, the only bank so complying with CBN directives.

Also, the banks have announced the extension of banking hours to 6 pm as against the usual time.

The development comes as the Central bank of Nigeria announced that President Muhammadu Buhari would unveil the new naira notes on Wednesday, November 23, 2022, in Abuja.

Source: Legit.ng