- The naira made remarkable improvement against the dollar at the investors & exporters Window
- The day started with an opening rate of N782.28 to the dollar on Friday but ended at N743.07
- Ministerial nominee, Wale Edun, said the naira should be able to exchange at N700 per dollar
On Friday, August 4, 2023, the Nigerian currency, the naira, experienced a notable appreciation of 4.31%, reaching a closing rate of N743.07 to the US dollar within the investors and exporters (I&E) window.
It's important to note that the I&E window serves as the country's official exchange rate platform.
Following the government's unification of the exchange rate windows, the official value of the naira has been consistently subject to fluctuations.
In June, the naira reached a nine-month low across all major markets, with its losses continuing following President Bola Tinubu's contemplation of a unified exchange rate.
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Naira gains ground
According to information from FMDQ Securities Exchange, the platform responsible for overseeing foreign exchange (FX) trading in Nigeria, the local currency experienced fluctuations throughout the trading day.
It reached an intra-day high of N799 and a low of N475 before ultimately concluding the trading session at N743.07 to the dollar.
The day started with an opening rate of N782.28 to the dollar on Friday. In total, the value of trades recorded at the I&E window amounted to $121.08 million.
Naira should exchange for N700/dollar
As per Legit.ng's earlier report, Wale Edun, a ministerial nominee selected by President Bola Tinubu, advocated for the naira to be pegged at N700 per dollar, contingent on the Central Bank of Nigeria (CBN) removing and reversing all detrimental policies of the previous government.
FG's exchange rate unification yields results as Nigeria earns $2.55 billion as forex inflow in 2 months
Expected to assume the role of finance minister, Edun emphasized the paramount importance of foreign exchange in the considerations of monetary authorities.
He also warned that speculators could potentially face significant losses if liquidity inflows rise and result in a rapid decline of the exchange rate.
Agreeing with Edun, Ifeanyi Jeremiah Ubah, a Research Lead at Comercio Partners, a Lagos-based investment firm said that the CBN has to prioritise policies that would stabilise the naira.
The naira has never been in a worse state than right now. The apex bank needs to more than ever a s a matter of priority brainstorm on policies that would aid the naira to at least a fair exchange rate of N600-N700 per dollar.
These policies are not far to reach. It just needs sincerity in the initiation and implementation of proper policies that would limit the rush for foreign currencies.
Naira appreciates in value by N51.34 against US dollar after CBN’s intervention
In related news, Legit.ng reported that the naira appreciated against the US dollar in the official foreign exchange market on Wednesday, July 26, 2023.
The market reacted positively to news from the Central Bank of Nigeria that it will continue its intervention in the forex market.
Data obtained from FMDQ securities that tracked the naira performance at the investors and exports window shows the naira closed at N740.08/$1 on Wednesday.
This represents a massive N51.34 or 6.5% improvement when compared to Tuesday's rate of N791.42/$1.
During trading on Wednesday, there was an increase in liquidity thanks to CBN intervention as the market FX trades rose by 197.3% or $101.73 million to $153.28 million from $51.55 million on Tuesday.