The naira continued its free fall on Saturday as it exchanged for N900 for $1 according to a cross-section of dealers that claimed to have traded on 5th November 2022.
This is more than double the official NAFEX exchange rate of N440/$1 reported by the central bank on its website for November 4, 2022.
The British Pound also sold for about N1005/£, while the Euro sold for about N865-N870/$1.
However, a quick check at peer-to-peer exchanges where dollars are also traded using the cryptocurrency; USDT, reveals rates averaged N830/$1 as of Saturday evening while rates ranged between N829-N833.9/$1. Unlike the inflow market where trades can be in millions, the value of trade in this market is typically small with an average trade of about $1,500 per transaction.
Reliable sources that buys inflow dollars regularly said they bought at above N900/$1 on Saturday. Inflow dollars refer to non-cash-based forex transactions consummated between two bank accounts.
The Nigerian banking system restricts transfers and withdrawals of dollars deposited via cash.
The exchange rate depreciated to N800/$1 on the 1st of November, shortly after CBN announced plan to redesign high denominations of the currency.
Should it continue to depreciate at the pace seen last week at the black market, then it could hit the N1000/$1 mark by mid-November.
Worthy of note is that the disparity between the official rates and the black market rate is now over 100%.
Data from the CBN website quotes the NAFEX rate at N440/$1 thus double that is about N880 /$1.
