Official Exchange Rate at N789.94/$1, Black Market Rates Vary Slightly
The Nigerian naira saw an appreciation against the dollar on Friday, October 27, 2023, closing at N789.94/$1. This marked a 6.26% increase from the previous day’s rate of N837.49/$1.
Throughout the day, the naira reached a high of N900/$1 and a low of N696.06/$1, indicating a substantial spread of N203.94/$1.
Data from the official NAFEM window shows a forex turnover of $259.84 million for the day, marking a significant 129.50% increase compared to the previous day.
The country’s external reserves also experienced a slight increase, reaching $33.326 billion. This marks a continuous nine-day gain streak, keeping the reserves above $33 billion since July 2023.
On the black market, where forex is unofficially sold, the exchange rate appreciated marginally by 0.39%, with a quote of N1295/$1. Peer-to-peer traders quoted rates around N1148.01/$1.
It’s worth noting that crypto traders quoted even higher rates, such as N1156.47/$1 for the dollar.
Additionally, the Nigerian government is contemplating imposing excise tax penalties on foreign exchange transactions conducted outside the official market window as part of its efforts to discourage multiple exchange rates in the country.
This move is among the twenty recommendations presented by the Presidential Fiscal Policy and Tax Reform Committee, which aim to address pressing economic issues, including exchange rate management, fuel subsidy removal, inflation control, and economic growth promotion.
Source: Nairametrics
