The Pound-to-Naira exchange rate in Nigerian black market was at over N1000 to £1 for the last five days, according to reports.
This was also confirmed by the Nairametrics tracker of black-market exchange rates over the last four weeks since the Central Bank of Nigeria introduced a revised investor and exporter window.
The UK pound has gained for five days back-to-back against the naira as demand pressure continues to pile up.
According to the report; the local currency depreciated slightly against the British Pound on July 10th, 2023, as the average exchange rate was N1025/£1, a 0.49% decrease from N1020/£1 on the previous trading day. While the Naira maintained its value against the Euro, closing at N850/€1on Monday, unchanged from the previous session.
The Naira maintained its steep fall on July 10th, 2023, depreciated 0.32% against the US dollar on the crypto-currency peer-to-peer exchange market, closing at N790.67/$1.
Consequently, official trading data from the Central Bank’s weighted average rates of forex also shows the pounds trading at N1008/£1 as of July 7th, 2023. It was N978.7 at the end of June 2023.
The depreciation of the naira against the UK Pounds coincides with the depreciation of the dollar which has also fallen to as low as N790/$1 across some major black market operators.
However, there are no official reasons explaining the reason for the drop, sources informed Nairametrics that this was related to the rising wave of Nigerians seeking to emigrate to the United Kingdom.
The demand pressure for the dollar which is also cross-sold for the pound is piling pressure on the naira as more Nigerians patronise the black market.
The partial float of the naira has also reduced the demand pressure on PTA and BTA which used to be sold at official rates. While most of the demand now flows to the black-market forcing rates to depreciate against the naira.