$1 hit N735 at parallel market immediately political campaign begins
Bureau de Change employees in Lagos and Abuja said that in the last week, the price of a dollar has climbed from N718 to N720 to N728 to N735.
Bala Usman, a BDC operator in Lagos’ Amuwo-Odofin, stated, “It is N728.
I must go above and beyond that.
Abubakar Jamiu, another vendor, informed the newsmen that “Dollar don cost, we are selling at N730, no more no less,” in Zone 4 of Abuja.
On Wednesday, the dollar reached N735 in the black market as the nation’s election season got underway.
However, by Wednesday’s end, the dollar rate had reached N735.
A Lagos Island operator named Mallam Zakari said that at of 4:54 pm, the dollar rate had increased to N735.
I’ll pay N731 for Dollar, which is worth N735.
We sold N728 yesterday.
However, the rate remained at N430/$ through the Importers and Exporters Window.
As of Tuesday, the dollar to naira exchange rate was N431.19.
The naira has depreciated in the black market, according to analysts, as a result of rising speculation, declining external reserves, and sluggish foreign exchange inflows.
“Bank and other financial institutions’ lending rates will increase as a result of the MPR increase.
This will cause operating costs for all enterprises to increase more, which will exacerbate the inflationary trend.
In order to prevent further depreciation of any cash kept in naira, this has increased demand for dollars.
Idahosa claimed that the beginning of the electoral process also signaled a significant inflow of cash into activities linked to campaigns.
Beneficiaries of these expenditures will exchange whatever naira money they get for dollars as soon as practicable.
Prof. Akpan Ekpo, an economist at the University of Uyo, claimed that given the CBN’s numerous constraints, there was a greater demand than supply for dollars.
The first is that there are more people who want money than there are available.
People consequently shop in the black market.
Additionally, collecting money from CBN is a lengthy process.
“There isn’t a lot of influx then.
We don’t export enough non-oil goods and services and are more dependent on oil, whose price has fallen recently.
Ekpo noted that the campaign plans for 2023 also had an impact.
Naturally, a campaign will soon begin, and politicians are saving money for it.
They are investing money in the campaign.