Naira Gains 2.42% as Tinubu’s Nominee Sees Exchange Rate Moderate at N700 Per Dollar

• The naira gained 2.42% Tuesday, August 1, 2023, as demand for the dollar slowed at the official market
• Foreign exchange turnover increased by 24.05% to $67.21 million on Monday, July 31, 2023, from $54.18 million recorded on Friday, 28, 2023.
• The development follows claims by Wale Edun, one of Tinubu’s ministerial nominees, that the naira would exchange at N700 per dollar

Naira on Tuesday stabilized at N870 per dollar at the parallel market, while it gained 2.42% at the official market on Monday as foreign exchange market turnover increased.

The Forex turnover, reflecting the volume of transactions at the Investors’ and Exporters’ (I&E) window, increased by 24.05% to $67.21 million on Monday, July 31, 2023, from $54.18 million recorded on Friday, 28, 2023.

Naira trades for N870 at the parallel market

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The dollar supply that drove up the market turner came primarily from willing buyers and sellers, including exporters, banks, and the Central Bank of Nigeria (CBN).

Data from FMDQ indicates that the naira appreciated as the dollar was quoted at N756 on Monday, July 31, 2023, as against N775,76 quoted on Friday, July 28, 2023, at the I&E window.

Willing buyers and sellers kept bids as high as N830 per dollar, weaker than N799.50 on Friday, July 28, 2023, but stronger than N869 per dollar a day earlier.

According to BusinessDay, at the parallel market, the naira appreciated by 0.34%, trading at N870 per dollar on Monday, July 31, 2023, and Tuesday, August 1, 2023, compared to N867 it traded on Friday, July 28, 2023.

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The development comes as one of President Bola Tinubu’s ministerial nominees, Wale Edun, said the naira should exchange at N700 per dollar as soon as CBN removes and reverses all the destructive policies of the previous government.

Edun said this during the Senate ministerial screening on Tuesday, August 1, 2023.

Edun, touted to be the next Finance Minister, said forex is the most essential thing in the minds of the monetary authorities.

He said:

Provided inflation is controlled, the N860/$ that we see is not backed up by the fundamentals of the Nigerian economy.”

Naira makes biggest recovery in 4 years at the official market, sells for N742 per dollar

Legit.ng reported that 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.

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.

Source: Legit.ng