Five days after falling to N900/$, the naira has made a comeback rising to N730 /$. The local currency is now in a better position than it was before the redesign announcement.
The naira is trading around N730/$ days after it hit an all-time low due to the massive market speculation reaction to the news of its redesign. This is according to information from black market traders who spoke to Nairametrics.
Five days ago, an exchange rate of N900/$1 was a psychological torment only a few analysts expected to end soon. In other words, the naira’s miraculous rise was not expected to happen so quickly.
The appreciation explained: Abu, a black market operator who resides in Lagos, said that the market had come back to normalcy, and the initial depreciation was caused by panic buying.
“After the CBN redesign announcement, we received so much demand for the dollar that came out of nowhere. This was because petty people panicked about the news of the creation of the new Naira note.”
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“I always knew it would come down, but I never thought it would be this fast.”
Bola, another black market operator, said the market is too violate to predict, but he was happy about the appreciation. He said: