Naira Gains In Official Market Despite Dollar Crunch

The foreign exchange (Forex) rate between Nigeria and the Dollar fell to N461.33 kobo/$1 on Friday, 24 March 2023, as the former appreciated against the latter.

Prime Business Africa gathered that the value of the Naira rose by N0.34 kobo or 0.07 per cent at the end of trading in the official market. 

The Dollar rate depreciated to N461.33 kobo below the N461.67 kobo/$1 reported on Thursday, 23 March 2023, data obtained from FMDQ Exchange showed.

Before closing down, the Dollar rate had increased to as high as N462.43 kobo. The United States currency also exchanged at a low of N460 during trading on Friday.

Also, over $241.38 million worth of foreign exchange was traded by investors and exporters on Friday, indicating forex supply rose by 201.61 per cent. 

Investors and exporters traded $161.35 million more than the $80.03 million worth of foreign exchange recorded in the official market the day before. 

Foreign exchange supply in the official market has been scarce, with the Central Bank of Nigeria (CBN) limiting access to the funds. 

This is due to the country’s low international reserves which have depleted by –1.08 per cent or $402.04 million within three months, from January to date. 

According to the foreign reserves record obtained from the central bank, the international reserves depreciated from $37.06 billion recorded on 3 January 2023 to $37.06 billion. 

Due to the Dollar crunch, commercial banks have had to review their foreign exchange application policy, extending processing time and reducing the forex each applicant can obtain.

Foreign exchange applicants obtain forex through Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), with the worth of forex now $2000 and processing time now 120 days. 

In a statement to its customers, one of the commercial banks, Access Bank, said: “PTA / BTA requests have now processed a maximum of twice annually per applicant to the tune of $2,000 per application where the request is within 14 days of the travel date. International school fees and Upkeep requests are processed within 120 days from the date of approval.”