Naira Appreciates by 4.5% Against US Dollar at Official FX Market as Traders Create More Headache for CBN
- Nigerian currency, the naira, has recorded positive performance against the US dollar at the official forex market
- The improvement follows the increase in liquidity by participants at the investors' and exporters' window
- It is, however, a different story at the unofficial market as traders continue to exchange the dollar against the naira at above N900
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Naira has recorded a massive improvement against the US dollar in the Investors and Exporters (I&E) arm of the foreign exchange (FX) market, which is the official market.
Data from the FMDQ Securities Exchange showed that the naira closed trading at N738.18 against the dollar on Wednesday, August 30, 2023.
This is a gain of 4.8% or N37.16 against the dollar compared to the closing rate of N775.34/$1 on Tuesday.
Source: Getty Images
The appreciation of the naira at the official market follows a massive improvement in dollar supply, easing pressure.
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BusinessDay reports that transaction volume by willing buyers and sellers jumped by 138.57% to $170.15 million on Wednesday from $71.32 million recorded on Tuesday.
Naira to dollar at unofficial market
It was, however, a different performance for the Naira at the Peer-to-Peer (P2P) and Black unofficial forex market.
Checks by Legit.ng show that the naira in the P2P market, used mainly by crypto traders, lost N3 against the dollar on Wednesday to trade at N920/$1, in contrast to the N917/$1 it was sold the previous day.
Also, in the street, the Nigerian currency depreciated against its American counterpart by N10 during the day to close at N915/$1 compared with Tuesday’s closing price of N905/$1.
The latest exchange rates at the official and unofficial markets show that the disparity has widened to N181.82. This is a far cry from CBN's plans to create a unified exchange rate.
Recently, the CBN instructed Bureau de Change operators not to sell or buy the dollar above certain limits, but this instruction is not being followed.
CBN announces dollar to naira price verification portal
Meanwhile, in another report, it was revealed that the Central Bank of Nigeria had introduced a new portal that will put an end to malpractices in the foreign exchange market.
The portal is set to go live by the end of August 2023, and it is expected to be a game-changer if done correctly.
Source: Legit.ng
