Nigerian official market exchange rate Appreciate to N789.94

CBN instructs banks to accept both old and redesigned naira notes
CBN instructs banks to accept both old and redesigned naira notes

The Nigerian naira exhibited its strength against the US dollar on Friday, October 27, 2023, closing at an impressive rate of N7.89.94 per dollar.

This signifies a substantial 6.26% increase compared to the previous day’s rate, which stood at N8.37.49/$1.

Throughout the trading day, the naira demonstrated considerable volatility, with the intraday high reaching N900 per dollar and the intraday low dipping to N696.06/$1, presenting a wide spread of N203.94 per dollar.

Data sourced from the official NAFEM (Nigerian Autonomous Foreign Exchange Market) window reveals a noteworthy forex turnover for the day, amounting to $259.84 million.

This figure marks a significant 129.50% surge when contrasted with the preceding day’s turnover.

Additionally, Nigeria’s external reserves experienced a modest increase, reaching $33.326 billion.

This marks a nine-day streak of gains, maintaining a position above the $33 billion threshold, a trend that has been observed since July 2023.

In the parallel market, where foreign exchange transactions occur unofficially, the exchange rate also exhibited resilience, appreciating by a marginal 0.39%.

It was quoted at N1295 per US dollar, while peer-to-peer traders quoted rates around N1148.01/$1.

However, an observation on Saturday morning revealed that in the cryptocurrency market, the exchange rate was quoted as high as N1156.47 per US dollar.

The Federal Government is now contemplating the imposition of excise tax penalties on foreign exchange transactions executed outside the official market window.

This move is part of a strategy to discourage the existence of multiple exchange rates within the country, aiming to streamline the foreign exchange market.