The Nigerian naira continues to depreciate sharply in the black market, with rates hitting between N1,730 and N1,740 per dollar, 9am News confirms. According to Mr. Liasu Moshood, a seasoned black market currency trader, the naira’s decline stems from intense demand for dollars by importers unable to access the official foreign exchange market. He explains, “The rush for dollars by importers, who cannot meet their needs through official channels, has strained the black market. With fewer dollars circulating, not everyone can trade as they want.”
The limited availability of foreign exchange is compounding pressure on dollar demand in the black market.. Moshood notes that even Bureau De Change operators and banks struggle to meet the high demand from importers, forcing them to turn to black market dealers for their foreign exchange needs.
Supporting this view, Mr. Idris Daud, another black market trader, projects that the naira will close October at N1,750 per dollar and may reach an exchange rate of N1,800 by year-end. “With today’s rates around N1,730 to N1,740, particularly from leading black market dealers, we’re seeing increasing demand as businesses prepare for the December festive season and end-of-year restocking,” Daud explains.
The seasonal spike in dollar demand from organizations importing goods, coupled with reduced dollar inflows into Nigeria, has put further pressure on the naira. The uncertainty over future foreign exchange rates has prompted businesses to stock up on dollars now, fearing potential increases in coming months.
Daud emphasizes, “We’re seeing high demand for dollars, yet our supplies are limited. Based on this continued demand and supply imbalance, I foresee the naira closing this month at N1,750 per dollar and possibly reaching N1,800 by year-end.”
Also, As Nigeria’s foreign exchange reserves remain strained, these projections underscore the challenges the naira faces in the black market. Furthermore, the Federal Government’s response in managing dollar inflows will be pivotal in stabilizing rates amid escalating demand pressures.
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