Emmanuel OchayiThe official exchange rate for the naira strengthened to N790.68 per dollar at the close of trading on Wednesday, October 18, 2023.
This data, obtained from the FMDQ where forex is traded and official exchange rates are published, revealed that the dollar closed trading at N790.8/$1, a notable improvement from the previous day’s rate of N848/$1.
However, the official market witnessed an intra-day high of N986/$1, marking a concerning weakening of the exchange rate. But, while the official market showed some resilience, the black market told a different story.
According to data from the exchange rate the unofficial black market hit N1,100 per dollar, surpassing the rates on peer-to-peer cryptocurrency platforms. This contrast highlights a growing disparity, with the difference between the official and black market rates now standing at 28% or N309/$1.
READ ALSO: Naira-Dollar Exchange Rate Hits Record Low At N848/$1 In Official Market
Ironically, this 28% gap is even wider than what was observed just before the forex unification was announced earlier in the year. At that time, the official rate was N471/$1, while the black market rate stood at N760/$1, marking a disparity of N289/$1, which was 38%—higher than the current situation.
The widening gap between the official and black market rates raises concerns about the central bank’s efforts to close this disparity. It’s clear that considerable supply and economic policies are needed to address this growing issue, especially if improved inflow in the official market is the goal.
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