Nigerian Lady Sings About the Rise in Dollar Exchange Rate in Nigeria as Prices of Food Increases

• A hilarious TikTok video of a Nigerian lady singing about the soaring dollar went viral online
• The lady held her guitar and sang about the foreign exchange crisis in Nigeria, which a lot of people can relate with
• Many Nigerians, who depend on imports for most of their needs, have lamented the spike in food prices

A funny video clip of a Nigerian lady singing about the sky-high dollar rate captivated many viewers on TikTok.

The lady clutched her guitar and belted out a witty song about the dire state of the foreign exchange market in Nigeria.

Countless Nigerians, who rely on imports for the majority of their necessities, have expressed their frustration over the surge in food prices triggered by the plummeting of the Nigerian naira.

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Watch the video below:

How does the foreign exchange market work

The foreign exchange market in Nigeria is where the Nigerian naira (NGN) is traded for other currencies, such as the US dollar (USD), the euro (EUR), the British pound (GBP), and others.

The exchange rate of the naira is determined by the supply and demand of foreign exchange in the market, as well as the policies of the Central Bank of Nigeria (CBN), which is the sole authority for managing the country’s foreign exchange reserves.

Exchange rate dollar to naira

There are different segments of the foreign exchange market in Nigeria, such as the official market, the autonomous market, and the parallel market.

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The official market is where the CBN sells foreign exchange to authorized dealers, such as banks and bureaux de change, at a fixed or managed rate.

The parallel market, also known as the black market, is where foreign exchange is traded informally and illegally, often at higher rates than the official or autonomous markets.

Naira bounces back, rises by over N160

Meanwhile, Legit.ng earlier reported that the Naira has started the new month strong, leaving speculators hoarding the dollar to count their losses.

In the early hours of Thursday, February 1, 2024, the Naira appreciated by N165.2 or 12.17% against the US dollar in the Peer to Peer market(P2P).

A peer-to-peer (P2P) platform is a digital platform that connects buyers and sellers directly, enabling them to buy and sell dollars.

Source: Legit.ng