Business
Dollar Finally Falls Below N1,000 at P2P as CBN’s Forex Solution Pays Off.
Dollar finally falls below N1,000 at P2P as CBN’s forex solution pays off.
The dollar is selling below N1,000 on the peer-to-peer (P2P) segment of the foreign exchange market for the first time in 44 days.
Cryptocurrency platforms primarily use the peer-to-peer market, and Nigerians purchase dollars through fintech apps.
NewsReport check on exchange rate shows that naira exchange against the US dollar as of 09:00 West Africa Time (WAT) on Friday, November 3 morning was N995 against the US dollar compared to the previous day’s closing rate of N1,113/$1.
This means that in just a few hours, the naira gained N118 against the US dollar.
The naira strengthened after the Central Bank of Nigeria revealed that it has begun clearing backlogs of foreign debts owed to international banks and corporations.
Citi Bank confirmed the payment of all outstanding matured forward FX in a circular titled “Settlement of Matured FX Forwards by CBN,” according to Punch.
“It is a gradual payment that was made in secret; the CBN made no fuss about it,” the bank explained. It started yesterday and has been going on all night.”
According to an earlier report, the dollar exchange rate to the naira would fall below N1,000, and the naira would regain some of its lost value. More gains are expected in the coming days, as the Central Bank of Nigeria anticipates a $10 billion inflow to help the market.
According to Taiwo Oyedele in an interview with Bloomberg, the federal government anticipates an exchange rate of N650 to N750 by December 2023.
Similarly, global financial institution JP Morgan forecasted a N850-to-dollar exchange rate by year’s end.
“There will be no more N1k”: BDC operators agree on a new dollar-to-naira exchange rate.
Legit.ng also reported that Bureau de Change dealers want to crash the dollar across the country.
ABCON initiated the move to aid the CBN’s efforts to stabilize the naira in the foreign exchange market. The Central Bank of Nigeria (CBN) has expressed genuine concern about the wide disparity between the black market and the official exchange rate.
