Naira Gains N15 at Unofficial Forex Market Window, Trades N785/$1

November 17, 2022
naira depreciate

By Dipo Olowookere

The value of the Naira to the American Dollar appreciated by N15 or 1.88 per cent on Thursday afternoon to trade at N785/$1 compared with the N800/$1 it closed on Wednesday.

The bolstering of the Nigerian Naira was influenced by a slight moderation in the demand for Dollars at the unofficial segment of the foreign exchange (forex) market.

Already, news that the Senate and other interest groups are piling pressure on the Central Bank of Nigeria (CBN) to extend the deadline for the usage of the current N200, N500, and N1,000 notes is easing the rush for FX requests at the market.

On October 26, 2022, the apex bank said it would redesign the higher banknotes as a way to control the supply of cash in the financial system.

It stated that the new notes would be introduced into circulation from December 15, 2022, and would expect all the old notes back into its vaults by January 31, 2023.

Yesterday, the Senate had a rowdy session over this new policy of the central bank as some lawmakers asked the CBN to extend the deadline by three months.

A group of cattle herders known as Miyetti Allah has also asked the apex bank to consider extending the deadline, noting that the current timeframe for the exchange of the old notes was too short.

Already, some hoarders of the old Naira notes are feeling relaxed, with the hopes that the CBN would succumb to pressure and extend the deadline.

This has reduced the demand for Dollars as foreign currency is the best route for currency hoarders to escape the prying eyes of the financial system, which intends to track people with huge amounts of funds kept away from commercial banks’ vaults.

According to the CBN, about 80 per cent of the Naira notes in circulation are not in the vaults of commercial banks, which is one of the reasons the bank decided to redesign the local currency.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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