Naira crashes to N775/$ days after CBN announced new naira notes

The naira fell to an all-time low of N775 per dollar two days after the Central Bank of Nigeria (CBN) announced it would redesign the 200, 500, and 1,000 naira notes.

The exchange rate between the naira and the US dollar fell sharply on Friday morning, October 28, 2022, trading at a low of N775/$1 on the black market, down from N760/$1 on Wednesday when the CBN made the announcement.

This is according to information from black market operators interviewed by Nairametrics.

The depreciation of the local currency at the black market was attributed to a spike in dollar demands prompted by CBN’s plan to redesign the naira.

Nairametrics anticipated that the policy move by the apex bank would force some people to convert their naira into dollars.

Abu, a black market operator in Lagos, told Nairametrics that he had just witnessed an unexplained jump in demand.

“The market is highly unpredictable; demand is too high. My dollar rate is N775/$, but by tomorrow it may have increased,” he said.
Musa, another operator, told Nairametrics that there had been an increased dollar scarcity because of the unstable prices. He said:

“The dollar price has become too unstable, and it is also difficult to get. I don’t have to sell now, which may be holding out for a higher price.”
Suleiman said the spike in demand started after the CBN announced the introduction of the new naira notes. He said:

“Honestly, I don’t understand the demand. Since the CBN announced the new naira, there has been an increase in demand,” he added. “The man wan scatter everything.” (sic)