The naira-to-dollar exchange rate ON Tuesday, achieved a two-month intra-day high of N851/$1 in the Investor and Exporter window, the official forex trading platform.
The Times reported that this peak was significant since the naira hadn’t reached a higher intraday rate since July 24, when it reached N855/$1.
The market turnover increased to $135.9 million on the same day, a considerable increase from the $64 million recorded the day before.
In contrast, the currency rate in the official I&E window actually improved despite undergoing depreciation on the illicit market. It increased to N755/$1, a significant increase from the previous day’s closing rate of N773.25/$1.
On the other hand, the parallel market, which is frequently used as a gauge of economic sentiment, painted a less positive picture. On the same day, the exchange rate there plunged to an unheard-of low of N1000 to $1.
The Senate’s approval of Dr. Yemi Cardoso as the new Governor of the Central Bank of Nigeria coincided with this decline.
The difference between the official and parallel market rates, which now stands at an astounding N245/$1 and is still increasing, has grown as a result of this changing situation.
According to one of our sources, currency roundtripping may be a key factor in the market distortions that are already present, aggravating the dollar’s scarcity and the rising Naira-to-Dollar rate seen in the FX market.
For respectable enterprises looking to get foreign currency for crucial activities, this scarcity presents difficulties.
In the meantime, the Senate approved Dr. Olayemi Cardoso’s appointment to the position of CBN Governor.
This came after the National Assembly’s Upper Chambers’ review. The nomination of the four CBN Deputy Governors was also approved by the Senate.
Emem Usoro, Muhammad Dattijo, Philip Ikeazor, and Bala Bello are the four deputy governors whose appointments were approved by the Senate.
