Exchange Rate Falls In Official Market, As Dollar Loses Value

April 12, 2023
Naira Opens Week With Gain Across FX Markets
US dollars and Naira

The Naira appreciated in value on Tuesday, 11 April 2023, as the cost of buying a Dollar in the official foreign exchange market fell by N0.35 kobo.

According to FMDQ Exchange data, the Naira appreciated by 0.07 per cent to close at N462.88/$1, against the N463.25/$1 exchange rate reported on Thursday, 6 April. 

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There was no official exchange rate for both currencies on Friday, 7 April, and Monday, 10 April, due to the two days public holiday announced by the Federal Government to celebrate the Easter festival. 

Prime Business Africa gathered from FMDQ Exchange data that the official market rate had traded as high as N466/$1 on Tuesday, and as low as N460 to One Dollar before closing at N462.88.

During trading hours, it was learnt that Investors and Exporters transacted $80.90 million worth of foreign exchange, which is 20.25 per cent or N20.55 million more than the $101.45 million traded on Thursday. 

The supply of forex in the official market has been fluctuating and finding it difficult to meet demand as oil marketers and airline operators have been complaining of Dollar scarcity. 

Prime Business Africa previously reported that the Managing Director of 11 Plc, formerly Mobil Oil Nigeria Plc, Tunji Oyebanji, complained of access to forex. 

Also, the Deputy Managing Director of an aircraft serviceability firm, 7Star Global Group, Air Commodore Simon Okwuokei (retd), had said the scarcity is affecting domestic and foreign airline operators. 

Okwuokei proffered a solution to the forex problem, stating that an increase in foreign trips by indigenous airline operators will raise the foreign reserves in the country. 

Speaking about the impact of scarcity of forex on the aviation market, he said: “Whether you are buying from China, Europe or America, you will need forex to pay for spares, consumables and to acquire equipment. 

“You will need dollars to pay for maintenance and nearly everything you are doing. It is mostly dollarized and if you buy in Europe, you will pay in euros. So, to that extent and to the extent that we are having a forex issue as a country, we have a challenge.”

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