Naira Falls To Dollar, As Exchange Rate Hits N463.02/$1

The official market ended foreign exchange (forex) trading on Wednesday, 10 May, at N463.02/$1, as the Dollar rate increased by N0.77 kobo.

This contrasted with the N462.25 kobo/$1 foreign exchange rate FMDQ Exchange reported at the close of trading the previous day. 

FMDQ further revealed that the forex rate between the naira and the dollar had peaked at N467/$1 and also hit a low of N460/$1. 

Also, in the Investors’ and Exporters’ window of the official market, traders transacted $178.68 million in foreign exchange (forex). 

This is a $79.84 million or 80.7 per cent increase when compared to the $98.84 million forex transacted on Tuesday, 9 May. 

The increase in supply follows the revelation that traders have increased non-oil proceeds repatriation due to the rebate programme of RT200 FX.

Repatriation rose from $3 billion recorded in 2021 to $5.6 billion at the end of 2022, after the Central Bank of Nigeria (CBN) implemented in February 2022. 

CBN Governor, Godwin Emefiele, had stated earlier this week; “I’m happy to note that the RT200 programme has made, and I use the word tremendous progress in export proceed repatriation since its establishment in February 2022.” 

He added; “The momentum for 2023 is equally showing strong numbers and impressive prospects. In the first quarter of 2023, a total of US$1.7 billion was repatriated to the economy while about $970 million was sold at the I&E window year-to-date. The balance of the proceeds remained in the Export Domiciliary Accounts of exporters. 

‘’Please note that proceeds that are not sold at the I&E window cannot and will not be eligible for the rebate. So, we encourage holding their export proceeds in their domiciliary accounts to take advantage of the rebate by selling their proceeds to the I&E Window.” 

He went on to express the CBN’s commitment “to strengthening and expanding foreign exchange supply into the market. Naturally, you all are important in this clarion call of expanding the supply of foreign exchange inflow into the economy.”

Fakoyejo Olalekan

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