Speculators in Tears After Naira Records Appreciation

Changing of government comes with many economic uncertainties as investors and citizens tries to understand the economic policy direction of the government in power.

Nigeria recorded a change of government in May 2023 after the new President of Nigeria His Excellency Bola Ahmed Tinubu was successfully sworn into the office of the Nigerian president on 29th May 2023.

In few months after the incumbent government of Nigeria assumed power, certain economic policies were rolled out and many political appointments were made to steer the economic and political economy of the most populated country in Africa.

Naira depreciated against dollar and in some days, black markets traded naira to dollar to more than one thousand naira equal one United States Dollar (USD)

The continuous depreciation of the naira made some currency speculators assume that the naira may reach close to two thousand naira to one dollar before December 2023.

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Some people went as far as going to withdraw the naira in their savings account to convert the money into dollar and saved it in their domiciliary accounts offered by many commercial banks in Nigeria. Those that made such move were afraid of the value depreciation of their savings in naira account and felt that converting their money to dollar would enable them to make more money or hedge their funds in line with possible continuous fall of naira against dollar.

In the past few days, naira has been gaining appreciation and traded below eight hundred naira to one dollar.

Those who bought one dollar with more than one thousand naira in equivalent witnessed the fall of their money. It became a terrible speculation for them as the naira continued to gain appreciation.

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In another news Central Bank of Nigeria has cleared FX backlogs owed to banks and airlines in Nigeria.

In another reported news, CBN lifted the FX ban on more than banned forty goods thereby triggering importers and exporters of the goods to have the legal backing of obtaining dollars from the FX market.

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