Amidst the many innovative policies of this new administration is the unification of exchange rates policy, aimed at promoting competition and curbing multiple practice among dealers.
A good policy, yet the Naira continues to fall.
The exchange rate of the dollar rose on Wednesday in the black market by 0.15% to ₦760.3/$1, from the previous day’s ₦759.1/$1.
While, the exchange rate of the pound fell from ₦987/£1 to ₦983.4/£1, on the parallel market also known as the black market.
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The Euro also failed to maintain its stance, trading at a downward rate of ₦843.3/€1, which is ₦.3 kobo drop in price compared to Tuesday’s ₦843.6/€1 rate.
In the official market, foreign exchange buyers bought the dollar at an increased rate of ₦763.17/$1, as authorised dealers hiked the price by ₦6.56 kobo from the previous day’s ₦756.61/$1 rate.
Dropping Foreign Reserve
Although, according to foreign exchange data released by FMDQ Exchange, the dollar rate traded as high as ₦815/$1 and as low as ₦476/$1 rate.
During trading in the official market, foreign exchange traders transacted $96.44 million in foreign exchange, with supply depreciating by 28.2%.
This means that investors and exporters traded $38.03 million less in foreign exchange compared to the $134.47 million reported the day before.
Meanwhile, Nigeria’s foreign reserves have dropped by $654.09 million since President Muhammadu Buhari left office in late May 2023.
The foreign reserves fell to $34.49 billion from $35.14 billion Buhari left behind, according to data from the Central Bank of Nigeria (CBN).
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Meanwhile, some stakeholders are of the opinion that President Tinubu’s floating Naira policy will be of much benefit to players in the industry, as the market will now determine the exchange rates.
