The black market naira to dollar exchange rate has made a surprising U-turn trading at almost #700/$ in recent days after trading at a high of #900/$ just last week.

But analysts say these gains may not hold up for long, and we might even begin to see a reverse any time from now.

To understand why it is important to understand how the parallel market works and how the exchange rate is determined in the black market.

The black market rate in Nigeria is determined by market sentiment of supply and demand, if plenty of people are demanding the dollar, the price goes up and vice versa. The market in recent days has seen a surge in dollar supply is the reason why the exchange rate is falling now, here’s how.

Contents [show]

Reasons for the crash
EFCC raid on BDCs
Throughout last week, EFCC officials raided the offices of bureau de change merchants in Abuja, Lagos, Kano and other major cities over allegations of currency hoarding and helping politically exposed persons to exchange their naira for dollars before the January 31, 2023 deadline when the CBN said old naira banknotes will cease to become legal tender in the country.

See also Aboki BlackMarket Dollar to Naira Exchange Rate Today
These raids forced most of the BDC operators to go underground, this move forced politically exposed persons to hold back their demands for the greenback. The huge demand that pushed up the exchange rate disappeared almost instantly.

Expiring dollar bill rumour
Following the announcement that the CBN has concluded plans to phase out the country’s 200, 500 and 1000 naira banknotes by January 31, 2023. Some people began peddling the rumour that the US Federal Reserve is planning a similar move with the dollar.

These unfounded rumours caused panic in the market with people who have the greenback selling before any possible expiration date. Though the rumour was false, it caused the market to be flooded with dollars in a very short period

Crash in the crypto market
Earlier this week, Binance, the world’s largest cryptocurrency exchange, backed out of its decision to purchase faltering cryptocurrency exchange FTX.COM.

Binance said the decision to pull out of the deal was as a result of corporate due diligence and information that regulators were investigating issues of mishandling of investor funds.

This news led to a bloodbath in the crypto market. Bitcoin prices fell 15% to $15.7k on Wednesday as investors liquidated millions of tokens in investments. A total of $200 billion was reportedly wiped off crypto markets within the week.

See also Dollar To Naira Exchange Rate Today 23 November 2021
Nigerians are among the largest crypto holders in the world, and the rush to liquidate tokens meant millions of dollars came into the country as holders try to cut their losses.

BRICS attempt to replace the dollar
The US dollar is the world’s reserve currency, and about 65% of global trade is performed in dollars. But countries in the BRICS organization comprising Brazil, Russia, India, China and South Africa announced that they plan to develop a new currency that will replace the dollar in global trade.

This news is also affecting the confidence that people have in the US dollar remaining the world’s reserve currency in the long term.

Bottomline
A combination of factors both local and international have helped the naira make some gains against the dollar in the black market. But these gains might not hold for long as the underlying factors that weakens the naira are still there.

The fact that Nigeria imports almost everything and doesn’t export anything valuable. Nigerians still spend over $ 1 billion on medical tourism every year. Thousands of Nigerians still leave the country every year due to rampant insecurity and to seek greener pastures abroad. Unless these factors are addressed, the naira to dollar exchange rate might sink to #1000/$ soon.

https://africaexplained.com.ng/why-naira-to-dollar-exchange-rate-is-crashing-at-the-black-market/

The major reason is EFCC! The unpatriotic speculators know that they will be caught, detained, prosecuted and lose all! They will lose their ill-gotten profits, principal, business license and liberty!

The criminals speculating illegally on the USD and some hoping to quickly convert their illicit funds into USD to avoid losing the money before 15 December are the culprits.
They have errands boys online peddling fake rates to cause panic and fear.
All of them will eventually be prosecuted.

EFCC seized their phones and now seriously monitoring their accounts on a daily basis till probably 31 January 2023.
PMB means serious business.
check my signature for free stuffs!

All Na stories abeg
All we want in d country
Steady power
Steady food
Good health
Good transportation and networking
Good health
Education is not left out
Government know who dey hold d country for her balls but chose to look d other way because they are are set kindred
Why wait dis long before carrying out dis kind of excerise
Evil government

FreeStuffsNG:
The major reason is EFCC! They know that they will lose all including their liberty!

The criminals speculating illegally on the USD and some hoping to quickly convert their illicit funds into USD to avoid losing the money before 15 December are the culprits.
They have errands boys online peddling fake rates to cause panic and fear.
All of them will eventually be prosecuted.

EFCC seized their phones and now seriously monitoring their accounts on a daily basis till probably 31 January 2023.
PMB means serious business.

You think the EFCC is that efficient?

ismalmuhd:

You think the EFCC is that efficient?

I wish I can tell you and other naive but criminally-impulsive youth to go and commit forex fraud first to find out then come back and tell us. It is obvious you are still young and have not entered criminal case with the state before to have your case lingering for 10 years before you are sent to prison for 15 years.

FreeStuffsNG:
The major reason is EFCC! They know that they will lose all including their liberty!

The criminals speculating illegally on the USD and some hoping to quickly convert their illicit funds into USD to avoid losing the money before 15 December are the culprits.
They have errands boys online peddling fake rates to cause panic and fear.
All of them will eventually be prosecuted.

EFCC seized their phones and now seriously monitoring their accounts on a daily basis till probably 31 January 2023.
PMB means serious business.

And Nigerians are happy that Agbado master will be starved of billions of naira that he stashed for vote buying.

Now, if he must buy votes, let him do it in dollars so it will be valuable to the fools who will decide to sell their votes.

ok

Summary,

The crash is an inexplicable crash that is tied to many speculations.


It may still gbera or jabo

At the international Airport today if u want to buy dollar from a license black market dealer inside the international dollar is sold at 800. This inside international Airport oooo not outside and this is a license dealer.

FreeStuffsNG:

I wish I can tell you and other naive but criminally-impulsive youth to go and commit forex fraud first to find out then come back and tell us. It is obvious you are still young and have not entered criminal case with the state before to have your case lingering for 10 years before you are sent to prison for 15 years.

Efcc is never in an hurry. Visiting Fed. High court and hearing difficult bail conditions would reset the brain of an aspiring fraudster

Naira is not crashing.It was #270 before buhari took over from gej.

This is why this country needs to move from consumption to production

In the mid 70s Nigeria was an export nation

The soil has not changed, the terrain hasn't changed much, what increases is the avarice of the ruling class

If allocations to states were be function of what that state produces , Nigeria would return to its former glory

States would not fold their hands and be waiting for oyel money to share. They would be trying to out do each other to see who produces more in other to get more

That is why we must do away with sick , old and dollar sharing politicians who have nothing to offer unbridled theft

The invisible forces of demand and supply are the cause. The EFCC is battling the supply side, in order to stiffle the demand side. It was the devaluation of the naira that caused this problem.

nothing affected the dollar other than the CPI that was released and showed the dollar went down, so our naira didn’t appreciate because our government did anything, it only appreciated because the US dollar went down. and be sure it will come back up

Dramadiddy:
nothing affected the dollar other than the CPI that was released and showed the dollar went down, so our naira didn’t appreciate because our government did anything, it only appreciated because the US dollar went down. and be sure it will come back up

But the official rate has gone up

Angelawhite:


But the official rate has gone up

same thing i am saying, it’s because the dollar has gone down. it’s not because we printed new naira notes

Dramadiddy:
nothing affected the dollar other than the CPI that was released and showed the dollar went down, so our naira didn’t appreciate because our government did anything, it only appreciated because the US dollar went down. and be sure it will come back up

Hi.is there any platform one can use to get the Black market rate?

I think the reason is because they done cashing out. Yeah, done cashing out. The inhumane administration is @ it's twilight ergo they trynna be acting nice. However, they might decide to cash in some more. When that happens, they back to continue...

黑子

2rez:
I think the reason is because they done cashing out. Yeah, done cashing out. The inhumane administration is @ it's twilight ergo they trynna be acting nice. However, they might decide to cash in some more. When that happens, they back to continue...

local man, what are you talking about?

ismalmuhd:
local man, what are you talking about?

What do you wanna know?