Dollar Rate Rises By N0.45 kobo, As Naira Devaluation Continues

Naira Appreciates To N869/$1 As Experts Debate Stability

On Wednesday, 5 April 2023, the Dollar rate closed trading at N463.75 kobo, as the Naira depreciated in value by –0.09 per cent in the official market.

According to data obtained from FMDQ Exchange, the cost of dollars in the official market increased by N0.45 kobo when compared to the N463.30 it was sold on Tuesday, 4 April 2023.

The exchange rate between the United States Dollar (USD) and the Nigerian currency had traded at a high of N466/$1 and a low of N460/$1 on Wednesday before closing at N463.75 kobo.

Also, the FMDQ Exchange data showed that traders in the Investors’ and Exporters’ window of the official market transacted $74.88 million worth of foreign exchange (Forex).

This is 35.41 per cent or $19.58 million more than the $55.30 million foreign exchange transacted by the traders in the forex market supported by the Central Bank of Nigeria (CBN).

Meanwhile, in other foreign exchange-related reports, foreign airlines’ revenue trapped in Nigeria has increased to $802 million, as scarcity of forex makes it impossible for airline operators to repatriate their ticket sales.

This was disclosed by the Director-General of the International Air Transport Association (IATA), Willie Walsh, this week, with the group stating Nigeria records the highest trapped funds in Africa.

Foreign airlines are unable to repatriate their revenue from ticket sales due to a shortage of Dollars in the official market which has forced the CBN to reduce access to what’s left in the foreign exchange.

International airline operators don’t want to approach the black market, where the Dollar rate is above N730/$1. The premium cost of purchasing forex from the Bureau De Change (BDC) operators will reduce the gains from ticket sales should the foreign airlines buy from them.

Nigerian commercial banks and the central bank have been the source of forex for foreign airlines, but with scarcity hitting the banks, their revenue generated within Nigeria is stuck in the country.

Fakoyejo Olalekan