A recent communiqué from the Federation Account Allocation Committee has revealed that the unification of the country’s currency rate has greatly raised earnings from exchange differences.
The Punch reported that the communiqué stated that the N320.89 billion in Exchange Difference earnings earned in June 2023 would be distributed in July 2023. This was significantly more than the N0.64 billion recorded as revenue for sharing in May 2023.
The difference that results from converting a specific quantity of one currency’s units into another currency at various exchange rates is known as an exchange difference.
According to the communique, which provided a breakdown of how the accrued revenue was distributed among the three levels of government, “From the N320.89bn exchange difference revenue, the Federal Government received N156.16bn, the State Governments received N79.20bn, the Local Government Councils received N61.06bn and the sum of N24.47bn was shared to the relevant states as 13 percent mineral revenue.”
The top bank opted to float the naira in the Investors and Exporters FX window around two weeks after President Bola Tinubu pledged to harmonize the country’s various exchange rates.
The naira had been fluctuating since then, circling between N750/$ and N820/$.
