AS THE SHORTAGE WORSENS, THE NAIRA WILL REACH N1,000 PER DOLLAR.

According to traders on Tuesday, the way which the naira is losing value compared to the dollar suggests that it may reach N1,000/$.

The Central Bank of Nigeria to alter the banknotes, which the traders claim is to blame for the shortage of dollars and the ensuing naira free fall.

Tuesday's trade ended with the naira closing at N822.5 to the dollar on Black Market all around the nation. This reflects a 2.74 percent decline from the N800's Monday closing price.

The dollar was swapped at N820 in Kano and Festac, Lagos, and N825 in Abuja and Apapa, according to a breakdown in the street markets.

Because of widespread fraud and corruption in the system, it will reach N1,000 before the end of the year, predicted Andrews Elueni, managing director of Flawless Capital Limited.

He remarked, “We have to assess the type of economy the CBN is operating,” in a phone interview. How is it possible that while dollars are priced at N443 on the official market, they are N822 on the black market？ Who receives the money？ What will they do with it？

Last Monday, the Nigerian Central Bank siad the current N200, N500, and N1,000 Notes will be replaced with new banknotes beginning on December 15, 2022.

Following immediate speculation against the naira, Financial Derivatives Company predicts that this should pass quickly (FDC).

Investors, speculators, and manufacturers will choose to be long in dollars and short in local currencies during uncertain times, according to a report by FDC experts.

According to data from the FMDQ, the Naira lost 0.68 percent of its value in the Investors and Exporters (I&E) forex window on Tuesday, when the dollar was quoted at N446.00 vs N443.00 on Monday.

Currency dealers who took part in the Tuesday foreign exchange auction kept their bids within the range of N424.00 (low) and N447.00 (high) per dollar.

The daily FX market turnover fell from $61.89 million on Friday to $51.58 million on Tuesday, a 16.66% decrease.

The Open Repo rate declined by 5.17 percent to finish at 9.33 percent compared to 14.50 percent on Monday at the money market, and the Overnight (O/N) rate decreased by 5.33 percent to close at 9.83 percent as opposed to the final closing of 15.16 percent.

Money market rates stays at present levels in the near term with the Open Market Operation (OMO) repayment of N20.00 billion, according to experts at FSDH.

After the CBN announced intentions to redesign high value Naira notes by mid-December, Nigerians are rushing to buy dollars, according to Forex Dealer with AZA Finance Kenga Kalu in an email to investors.

According to Bloomberg, the difference between official and unofficial rates is 88 percent, which is the widest divergence ever. The redesigned notes are meant to lessen forgeries, and prevent terrorist and kidnapper ransom payments, according to Kalu.

Old bank notes in the denominations of N200, N500, and N1,000 would be null and worthless, according to CBN Governor Godwin Emefiele.