Fakoyejo OlalekanThe United States Dollar appreciated against the Nigerian currency, Naira, on Monday, 27 March 2023, as the exchange rate closed at N461.50 kobo in the official market.
Both currencies had exchanged for N461.33 kobo/$1 last week Friday. This indicates the Naira weakened by 0.03 per cent or N0.17 kobo.
According to data from the FMDQ Exchange, before the exchange rate settled at N461.50 kobo, one Dollar exchanged at N462.42, which was Monday’s highest level, and a low of N460.
The value of the Naira fell on the back of a decrease in foreign exchange supply in the Investors’ and Exporters’ window of the official market.
Prime Business Africa gathered from the official market data that Investors and Exporters traded $101.77 million worth of foreign exchange.
The value of the forex transacted on Monday fell by –57.83 per cent or $139.61 million when compared to the $241.38 million exchanged on Friday.
In the Bureau De Change window of the black market on Tuesday, 28 March 2023, the exchange rate between the Dollar and the Naira was N745/$1, depreciating from the N746/$1 the currencies exchanged for on Monday.
The Naira’s decline comes as the Central Bank of Nigeria (CBN) releases more Naira notes to Deposit Money Banks (DMBs) to end the scarcity of the local notes.
Spokesperson of the CBN, Isa Abdulmumin, had stated on Friday that commercial banks have received substantial amounts in various denominations.
“Central Bank of Nigeria evacuates banknotes to Deposit Money Banks,” Abdulmumin stated in a statement posted by the financial regulator on Twitter.
Note that the scarcity of Naira had increased the amount spent by traders in need of foreign exchange, as Nigerians had to buy Naira, paying N1,000 to obtain N5,000, which traders, in turn, had to offer in exchange for Dollars at the official or black market.
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