Fakoyejo Olalekan
The price of the Dollar in the foreign exchange official market was ₦462.13 on Wednesday, 26 April 2023, data from FMDQ Exchange showed.
It was learnt that the exchange rate between the Naira and the Dollar traded as high as ₦466/$1 and as low as ₦415/$1 during trading before closing the session at ₦462.13/$1.
Join our WhatsApp ChannelWhen compared to the ₦463.44/$1 exchange rate on Tuesday, 25 April, the Naira gained against the Dollar, appreciating by N1.31 kobo or 0.28 per cent in value.
During trading in the official market, FMDQ revealed that $119.97 million foreign exchange was transacted on the Investors and Exporters window.
The day before, traders in the Investors and Exporters window had transacted $62.69 million worth of foreign exchange. This is a $57.28 million or 91.3 per cent increase in forex supplied between Tuesday and Wednesday.
Since the official market opened on Tuesday after the Eid el-Fitr public holiday last week Friday and Monday, the Naira has been appreciating in value.
The growth in Naira’s value comes as the country counts down to the administration of Bola Tinubu and the end of President Muhammadu Buhari’s tenure.
There are expectations that the incoming administration will change policies around foreign exchange and macroeconomic policies to encourage investments from foreign investors who have been snubbing the Nigerian market.
The lack of foreign investments has contributed to the depreciation of the Naira and the increase in the Dollar rate in the official market.
The Chief Executive Officer of the Nigerian Exchange Limited (NGX), Temi Popoola, had hinted that the stock market is hoping on policy tilt to encourage foreign investments.
“There has been a dearth of new ETFs listings on the NGX in recent years, however, there are bright spots on the horizon with 4 new ETFs listings in the pipeline.
“It is incumbent to state that current macro-economic challenges resulting in the exit of Foreign Investors, impacted the ETFs space which resulted in a sharp dip in the ETFs market Cap from 2020 highs of N24.5bn.
“We are hopeful that the policy tilt of the new administration would impact positively on our market,” Popoola said in the report published on NGX,” Popoola said.
