The exchange rate for the dollar plummeted to N1,000 on Monday, causing a surge in the value of the naira as speculators unloaded their hoarded foreign currency on the parallel market, commonly known as the black market.
The naira, which had closed at N1,480 on Friday, experienced a notable appreciation to N1,000 by Tuesday, leading to financial losses for numerous speculators who had purchased dollars at higher rates.
“There’s currently a surplus of dollars in the market with low demand. It’s unclear where these dollars are originating from, but individuals are selling them to us. Some of us who acquired dollars at higher rates are now witnessing losses as the dollar’s value declines,” remarked a street trader to BusinessDay on Monday.