The exchange rate between the naira and the United States Dollar (USD) closed at N738.18/$1 in the Investors’ and Exporters’ window on Wednesday.
In a report obtained from the FMDQ Exchange, the Naira to dollar rate ended trading below the N775.34/$1 rate offered at the close of Tuesday’s session in the official market.
This showed the naira appreciated in value by 4.79 per cent during trading, as authorised dealers brought down their asking price by N37.16 kobo when the rates were compared.
However, the authorised dealers and their clients saw the rate of the United States currency go as high as N800/$1 and as low as N701 per dollar before the official market closed.
Furthermore, the official market foreign exchange traders recorded the value of forex transactions rise by 138.57 per cent or $98.83 billion during trading according to FMDQ Exchange.
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The official market aggregator had reported on Tuesday that the total foreign exchange transaction was $71.32 million, however, the forex transactions reported on Wednesday was $170.15 million.
Although, in the black market, the average rate of the dollar was stable, trading at N920.1/$1 on Wednesday. This is the same rate reported by Naira Rates, a parallel market aggregator.
Also, the British currency, the pound, was traded at an average rate of N1177.6/£1 in the Bureau De Change window, maintaining the rate posted by the aggregator the previous day.
The naira also held its ground against the euro in the black market, as Naira Rates disclosed that the average rate offered on Thursday was similar to the N1009.52/€1 reported the day before.
The Nigerian naira is the worst-performing African currency this year, falling more than 40% against the dollar as the country takes tough steps to fix its financial situation by eliminating fuel subsidies and reforming the exchange system was widely criticized.
In June, the central bank reformed the country’s foreign exchange policy, devaluing the Naira.