The exchange rate between the naira and the US dollar has fallen further to a record low on the black market, trading at a minimum of N740/$1 on Tuesday morning. This is according to information from black market operatives interviewed by Nairametrics.
According to FX traders, the fallen currency can be attributed to the continuous scarcity of forex and increased demand in the market. In a discussion with Mr. Saheed, an FX trader around the Lagos International Airport, he stated that they sell dollars for an average of N740/$1 and buy for a maximum of N730/$1.
He also added that it sold for as high as N745/$1 and has just moderated. He explained that the rising demand and continuous liquidity crunch continue to drive the exchange rate upward in the unofficial market, considering the price is determined by demand and supply.
The exchange rate has maintained a downward trend, following the move by the apex bank to raise the interest rate to a 20-year high of 15.5%, representing 150 basis points increase from the 14% stated at the previous MPC meeting.