Dollar Rate Up In Official Market, As Naira Drops In Value

The exchange rate between the Naira and Dollar settled at N463.50/$1 on Monday, 3 March 2023, as the Nigerian currency depreciated in value by 0.45 per cent in the official market.

Prime Business Africa learnt that the Naira to Dollar rate closed below the N461.38 kobo reported on Friday, 31 March 2023. 

This indicates the Dollar rate increased by N2.12 kobo in the official market on Monday, same day it traded as high as N466 and as low as N460. 

According to FMDQ data, which disclosed the exchange rate of the official market, it revealed that investors and exporters transacted $175.40 million foreign exchange (forex).

This is 6.88 per cent more than the $188.37 million forex traded on Friday, indicating traders bought $12.97 million more than they previously did. 

Meanwhile, the current gap between the official market and the black market, where a Dollar is sold above N700, will increase the financial burden of Nigerians when the oil sector is completely deregulated, the Managing Director of oil firm, 11 Plc, Tunji Oyebanji, disclosed. 

Oyebanji said the high cost of buying Dollars in the black market could raise the pump price of petrol when subsidy is removed, as there’s no guaranty that the government will provide forex to oil firms at the rate of the official market.

11 Plc boss said: “If we are to start importing petrol today, are we going to be getting exchange rate at the official price or we have to source from the black market at over N730 to a Dollar as against the official price of N450 to a Dollar. If it is to be sourced at the black market that means it will shore up the price of petrol and Nigerians must be prepared to pay this price. 

“If NNPC stops importing today when it eventually ceases to subsidize petrol, does that mean there would be no product?” Oyebanji asked.