The naira to dollar rate traded as high as N855/$1 on Monday, and as low as N650/$1 in the Investors’ and Exporters’ window of the official market.
Why Naira is still under pressure

Dollar Falls In I&E Window, Sold At N804 In Black Market

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The naira recovered against the dollar in the Investors’ and Exporters’ (I&E) window of the official market on Monday, according to the FMDQ Exchange.

Both currencies exchanged at N795.28 kobo/$1, by the close of trading, which is below the N803.90 kobo/$1 rate offered on Wednesday.

This is an N8.62 kobo dip in the cost of the United States Dollar, which had also hit the highest and lowest rates of N832/$1 and N699.50/$1 during trading.

FMDQ Exchange further revealed that at various prices, over $34.55 million in foreign exchange transactions were recorded.

Note that this is below last week Friday’s $40,48 million. This is a $5.93 million or 14.68 per cent decline in the value of forex transacted by foreign exchange traders.

Although, in the black market, Naira Rates, the parallel window aggregator, disclosed that the dollar was sold at an average rate of N804.8 kobo/$1, the same rate as on Friday.

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The naira also stood its ground against the pound, as the UK currency was exchanged at N1068.5/£1 rate in the parallel market, depreciating from N1070.9 kobo/£1.

However, the euro appreciated against the Nigerian currency, after it was placed on sale at an average rate of N917.6/€1, slightly above Friday’s N916.1/€1.

Meanwhile, the naira crossing N800 in the past week has compelled the International Air Transport Association (IATA) to increase the exchange rate for foreign flight tickets.

Prime Business Africa reported that the IATA increased the international airline tickets’ exchange rate to N803.90/$1, from N776.90/$1.

The IATA increased the foreign airline ticket exchange rate one month after the Central Bank of Nigeria (CBN) devalued the naira in the Investors’ and Exporters’ window on 14 June 2023.

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This means foreign airline passengers in Nigeria will have to cough up more naira to book international tickets for their journey to Western countries.

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