Fakoyejo OlalekanThe Naira and Dollar exchange rate settled at ₦462.23 kobo/$1 at the close of business in the official market on Friday, 5 May 2023.
This represents a 0.14 per cent increase in the value of the Naira and ₦0.65 kobo drop in the Dollar rate when compared to the ₦462.88 kobo/$1 reported on Thursday, 4 May.
It indicates the Nigerian currency, which has been under pressure due to high Dollar demand, had the upper hand against the United States currency at the end of trading last week.
Before the exchange rate of both currencies closed at ₦462.23/$1, data from FMDQ Exchange disclosed the Dollar rate was as high as ₦466 and as low as ₦446 at some points during trading.
At the end of Friday’s session, Prime Business Africa gathered over $128.29 million foreign exchange (forex) was transacted in the official market’s Investors’ and Exporters’ window.
The day before, about $108.43 million was transacted by investors and exporters in the official market, reflecting an 18.31 per cent rise or $19.86 million increase in forex transactions.
But this increase is far from ending the scarcity of the Dollar, as the official market continues to struggle to meet the demands of foreign exchange traders.
Recently, the President of the Association of Corporate Treasurers of Nigeria (ACTN), Yinka Ogunnubi, during his inauguration as ACTN’s new president, complained of Dollar scarcity.
He said there’s acute foreign exchange scarcity and ACTN members are unable to access forex easily, making it difficult for them to pay taxes and continue business.
Ogunnubi stated the solution to scarcity is policy change. He also called on the government to address the multiple exchange rates in the country.
“For our members and, of course, you know we are a treasurer organisation, most of our challenges have to do with the forex situation because there is acute forex scarcity and our members are not able to access forex easily.
“So, we need the Federal Government to solve the policy problems, because that is where the solution is because if they address the policy problems, it will be easier for us to get trade financing, easier for us to pay our taxes and continue business,” Ogunnubi said.
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