Naira Makes Biggest Recovery in 4 Years at The Official Market, Sells For N742 Per Dollar

• The naira rebounded in its biggest gain ever on Tuesday, July 18, 2023
• The naira exchanged for N742 per dollar at the official Investor and Exporter (I&E) window
• However, in the black market, the naira plummeted to N825 per dollar as demand piled on the US greenback

The exchange rate between the naira and the dollar gained about 6.58%, closing at N742.93 per dollar on Tuesday, July 18, 2023.

The gain represents the biggest daily gain witnessed since Nigeria began the unification of the exchange rate windows in the country on July 14, 2023. It is also the highest daily gain since 2019.

Forex turnover also witnessed biggest volume

Reports say the foreign Exchange turnover increased to 352% to close at N156.29 trillion, the biggest volume of Forex traded since June 30, 2023.

The exchange rate still recorded an intra-day high of N831 per dollar, while the Peer-to-Peer black market fell as low as N841 per dollar.

At the parallel market, the naira fell to N825 per dollar as pressure mounted on the dollar from importers, travelers, and others seeking Forex for various purposes.

Analysts believe that the recent tax clearance certificate requirements by the Central Bank of Nigeria excluded many from accessing Forex at the official rate and pushed them into the black market where the demand is higher.

Analysts fault unification policy

In an interview, Financial Analyst Peter Mbah told Legit.ng that the federal government needs to handle the unification of the foreign exchange properly.

Mbah said the volatility experienced in the Forex market would continue until specific issues are addressed.

“The collapse of the NAFEX window is the biggest mistake CBN made in the unification process.

“We still have multiple exchange rates in Nigeria, and until CBN reigns in the operations of the black market dealers, the volatility would continue,” Mbah said.

He pointed out that the black market is fast slipping further away from the official rate, thus widening the gap, which is why the unification is.

“So, the purpose is being defeated as you see the chasm between the official and black market rates,” he said.

Naira Falls to Lowest in History, officially exchanges above N800 per dollar

Legit.ng reported that the exchange rate between Nigeria’s currency, the naira, and the dollar depreciated to N803 per dollar at the Investor and Export (I&E) window on Friday, July 14, 2023.

The fall is the lowest in history. The exchange rate has fallen since Nigeria began floating the naira and moved above the N800 per dollar threshold for the first time.

The current depreciation represents a 7.3% decline from the beginning of the week when it closed at N744 per dollar.

Source: Legit.ng