Naira Depreciates to N840 per Dollar at Official Market, Trades Lower in Black Market
- The exchange rate between the naira and the dollar witnessed the highest depreciation ever
- At the official Investors and Exporters (I&E) window, the naira traded for N840 to a dollar before settling for N770.17
- It also depreciated at the US greenback at the parallel market, trading at N773 to a dollar on Monday, June 26, 2023
Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
The exchange rate between the dollar and the naira at the official Investor and Exporter (I&E) window sold as high as N840 to a dollar, the highest since the Central Bank of Nigeria (CBN) began floating the naira.
The amount is the highest ever recorded on the official window, exceeding the N815 to a dollar previously recorded.
Source: Getty Images
CBN introduces free float of the naira
The exchange rate, however, closed at N768 at the end of the business after depreciating to N770.17 to a dollar.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Nigeria adopted a market-driven exchange rate policy a fortnight ago, which led to a sharp depreciation of the local currency from N471 to a dollar to over N700 to one dollar.
According to reports regarding the turnover, the I&E window recorded $198.13 million on Monday, June 26, 2023. The total turnover since the revised window was launched is about $1.4 billion.
The exchange rate has fluctuated between N750 to a dollar and N770 to a dollar in the last seven days, hitting an intra-day high.
BusinessDay reports that the naira depreciated against the dollar by 0.39% at the parallel market, AKA the black market, due to increased dollar demands.
The dollar quoted at N773 is against the N770 to a dollar it quoted on Friday, June 24, 2023.
Dealers attributed the naira depreciation to heightened demand for dollars from those traveling for education, tourism, or business.
FG pledges more dollar supply to stabilise naira as it exchanged for N800 to a dollar
Legit.ng reported that the Nigerian government has announced plans to inject some foreign exchange into the economy to strengthen the value of the naira as market forces stabilize.
Dele Alake, Special Adviser to President Bola Tinubu, revealed the plans on Wednesday, June 21, 2023, while speaking with reporters in Paris.
Alake’s statement comes as the naira is experiencing a remarkable recovery against the dollar in the parallel market.
Source: Legit.ng
