At CBN window, Naira trades for N763 per dollar

On the Investor & Exporter forex window, the value of the naira against the US dollar increased by 0.68 percent.

Tuesday’s closing rate for the local currency was N763/$, down from Monday’s close of N768.17/$.

Due to the two-day public holiday commemorating the Sallah celebration, there was no trading on Wednesday.

According to data obtained from the FMDQ, trading on Tuesday started at N760.5/$ and ended at N763/$, with a high of N841/$ and a low of N467/$.

Additionally, the trade saw an increase in turnover, going from $198.13m at the close of trading on Monday to $245.65m on Tuesday.

Prior to this, the Central Bank of Nigeria issued a directive to Deposit Money Banks to remove the rate cap on the naira at the I&E window in order to allow the local currency to freely fluctuate against the US dollar and other major world currencies.

Prior to the announcement, the naira had an I&E window closing rate of 471.67/$ and a parallel market rate of 740/$.

Prof. Segun Ajibola, a professor of economics at Babcock University and a former president of the Chartered Institute of Bankers of Nigeria, once referred to the previous multiple exchange rate system as a chessboard of corruption.

He claimed that in addition to fully utilising the OPEC export quota for crude oil, sources of foreign exchange like non-oil exports, remittances, and foreign direct investments needed to be increased.

According to him, the pressure on the official and unofficial markets could ease as the supply of foreign currency increased.

He declared, “Generally speaking, the two rates will collide, and a new exchange rate equilibrium will be reached in the market. Specifically, this is the preferred unified exchange rate.

The CBN and the Nigeria Customs Service have expanded the ongoing foreign exchange reforms to the maritime industry, according to a recent report in The PUNCH, with a 40% increase in the exchange rate used to determine import duty.

The NCS increased the exchange rate used to determine import duty from N422.30 to N589 per dollar.