Dollar Rate Falls In CBN-Backed Official Market, Buhari Projects Stability

Exchange rate between the Naira and the United States Dollar (USD) fell in the official market on Wednesday, 15 February 2023.

According to the exchange rate data obtained from the FMDQ Exchange, the cost of buying  a Dollar depreciated by N0.17 kobo. This indicates the Naira slightly appreciated in value by 0.04 per cent at the closing of trading in the Investors and Exporters window of the official channel. 

The exchange rate between both currencies closed at N461.50/$1 on Wednesday, below the N461.67/$1 reported during the previous session on Tuesday. 

Prime Business Africa gathered that the Naira appreciated on the back of increase in foreign exchange (forex) supply in the investors and exporters window. 

Traders in the official market backed by the Central Bank of Nigeria (CBN) transacted $89.54 million worth of foreign exchange. 

This represents 30.1 per cent increase in supply, as the $89.54 million forex transacted on Wednesday is $20.69 million more than the $68.85 million transacted a day before. 

Naira’s gain in the official market follows the report that the exchange rate in the channel will appreciate to N480-N500/$1 before the year ends, according to the Credit rating agency, Agusto & Co. 

The credit rating agency also projected that the Black market would witness the weakness of the Dollar, as the exchange rate will depreciate to N650-N680/$1. 

Agusto said the increase in the exchange rate of the Investors and Exporters window will encourage migration from persons patronising the black market. 

Consequently, the exchange rate will depreciate in the Bureau De Change window of the parallel market, as demand for the American greenback will slump. 

Also, President Muhammadu Buhari in his nationwide broadcast on Thursday, 16 February 2023, had stated that the Naira redesign policy of the Central Bank of Nigeria (CBN) will lead to exchange rate stability in the long term.