Business
Exchange rate closes at N769.25/1$ as daily rate disparity persist
The latest I&E Window exchange rate for June 30th, 2023 shows the exchange rate between the naira and dollar closed at N769.25 per dollar after the opening rate was N758.56 per dollar.
The turnover was $263.45 million, which is higher than the average daily turnover of $200 million in the past month. The highest rate recorded today was N841.00 per dollar, while the lowest rate was N461.50 per dollar, reflecting a wide range of fluctuations in the market.
The I&E Window, also known as the NAFEX window, is a market segment where foreign exchange is traded between banks, foreign investors, exporters, and the central bank.
The I&E Window rate is determined by market forces and is seen as a more realistic reflection of the naira’s value than the official rate set by the central bank.
The exchange rate opened the month at N464.67/$ when the central bank was still maintaining multiple exchange rate windows. However, the unification of multiple exchange rate windows pushed by Nigeria’s new president forced the central bank to change its foreign exchange policy.
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By closing at N769.25/$1 the exchange rate depreciated by 39% in one month, one of the largest one-month depreciation of the currency seen for decades. However, the exchange rate market finally achieved parity during the month after years of operating a huge exchange rate disparity between the naira and the dollar.
Meanwhile, the disparity between the intra-day rates and the closing rates continued to persist in the forex market on Friday. Just as we have observed all week, the intra-day high was N841/$1 while the Intra-day low was N461.50/$1.
Traders are raising concerns over the fact that forex has continued to be traded at unusually low rates of approximately N460-N465/$1 at the official investor and exporter window.
The forex traders have, therefore, expressed suspicions and questioned the legitimacy of these trades, suspecting possible market manipulation. Some individuals have reportedly engaged in buying forex at these extreme intra-day rates, further fueling concerns.