Fakoyejo OlalekanJuly 5, 2022 Dollar Rate Update: The cost of naira and dollar exchange reversed to their level in December 2021 following a 0.99% decline in the value of the Nigerian currency after trading in the official market on Tuesday.
Nigeria’s legal tender crash to N430 in value to purchase $1. On Monday, the United States currency had been sold at N425.75, but the cost of the greenback grew by N4.25 the next day on the official market.
The official market is the Investors and Exporters window, which is backed by the Central Bank of Nigeria (CBN), and constantly receives intervention from the financial regulator to tame forex movement.
It is a seven months high when compared to the N430 one dollar exchanged for at the close of business hour on December 30 last year. The rise in the United States currency comes at a period forex trade is on a decline.
At the Investors and Exporters window, it was gathered from FMDQ that $47.56 million was supplied to the official market, as dollar shortage continues to bite buyers in need of the foreign currency. This has triggered the upward movement of the dollar.
The naira experienced the same fate in the Bureau De Change market, after operators sold dollar at the cost of N616. The foreign currency appreciated by 0.48% in value against the Nigerian legal tender, having exchanged at N613 on Monday.
Meanwhile, the Central Bank of Nigeria disclosed that the country’s external reserves grew by $5.83 billion year-on-year from $33.32 billion of last year June, to $39.16 billion at the end of 2022 first half.
The increase, however, hasn’t brought an end to forex scarcity, with demand overshooting supply, and causing the value of foreign currencies surpassing that of Nigeria. The lack of FX has also forced the central bank to limit access to the forex, making it difficult for businesses and individuals to obtain.
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