Fakoyejo OlalekanThe foreign exchange rate between the Naira and the Dollar was ₦463.67 kobo at the end of trading in the official market on Thursday, 20 April 2023.
According to the FMDQ Exchange date obtained, the official market rate of both currencies is above the ₦462.50 kobo reported on Wednesday, 19 April 2023.
Join our WhatsApp ChannelThis reflects a decline in the value of the Naira against the Dollar in the forex market recognised by the Central Bank of Nigeria (CBN).
Naira depreciated by -0.25 per cent, while the cost of the United States Dollar (USD) rose by ₦1.17 kobo on Thursday, after it had traded as high as ₦466 and as low as N459.82 kobo during intra-day trading, before settling at ₦463.67 kobo/$1.
The value of the foreign exchange transacted in the Investors’ and Exporters’ window of the official market appreciated by 5.51 per cent or $8.17 million.
Investors and exporters traded $139.85 million worth of foreign exchange on Thursday. This is below the $148.02 million forex traded at the end of trading activities on Wednesday.
In the last four months, the Naira has depreciated by -0.57 per cent, with the cost of the Dollar up ₦2.67 kobo, as the exchange rate closed the first day of the year at ₦461/$1.
The Naira faces possible devaluation going into the year, considering Nigeria’s President-elect, Bola Tinubu, plans to end the multiple exchange rate regime.
However, one of his plans is to raise the value of the Naira against the Dollar to ₦300, then ₦200/$1 in the next four years by collaborating with the CBN to harmonize the fiscal and monetary policy.
“My administration will collaborate with the Central Bank to harmonize the fiscal and monetary policy to achieve immediate stabilization of the value of the naira against the US dollars and other currencies and in the short term, strengthen the naira by boosting the supply of foreign currency and moderating demand.
“The short-term goal is to achieve a naira/dollar rate of 300 naira/US$ and gradually achieve a less than 200 naira rate over the next four years,” Tinubu said.
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