The exchange rate between the naira and the US dollar has fallen to a record low at N685.5/$1 at the peer-to-peer (P2P) forex market. Findings by Nairametrics from cryptocurrency P2P exchange market shows.
The dollar which was at N667/$1 has now fallen further by 2.8% to N685.5/$1; as demand for foreign exchange remains elevated amidst sustained scarcity.
The P2P market often traded in small volumes and the unit of exchange is the cryptocurrency USDT; which is a stablecoin that trades 1:1 with the dollar. Similarly, Bureau De Change operators sold forex at N665/$1 on Tuesday, indicating continuous nosediving of the local currency.
Some BDC operators have blamed the volatility in the parallel market on the fragmented and disorganized state of the market. Some have also blamed it only significant rise in demand as a result of panic buying.
Meanwhile, some P2P exchange markets traded at lower rates this morning. For example, on Trove, the exchange rate was stated at N665 to a dollar, while Bamboo was N655/$1. It is also worth noting that N685.5/$ is the lowest rate stated on Binance.