The exchange rate at the government's Investors and Exporters (I&E) counter fell to 770.38 naira/$1, on the first trading day after the apex bank lifted restrictions on foreign currency withdrawals from domestic accounts. The foreign exchange market in Nigeria has also experienced major fluctuations due to the operational changes of the Central Bank of Nigeria (CBN) which was introduced a week earlier. It is also the first time that the difference between the official exchange rate and the black rate is close to parity since 2018. According to today's trading data on the I&E counter, the open rate is N703.50/$1, while the closing rate is equal to ₦770.38/$1. These numbers show a significant increase in the exchange rate throughout the trading day. The spot rate saw a high of ₦799.00 and a low of ₦461.00, reflecting a market reversal. Participants in the market saw a significant change of $78.03 million during the day, indicating the participation of investors and exporters, and revealing the exchange rate of the black market traded between 765 N - N770/$1 for a deposit (representing wire transfer).
Meanwhile, the exchange rate on the Binance crypto exchange where peer2peer transactions take place is trading between N760-N763 for one dollar, suggesting that the current I&E window is in line with peer-to-peer rates. The difference between the dollar and the naira in the official market and black market prices has closed for the first time since 2018. At the same time, market fluctuations achieved in recent days can be attributed to the current trend. market research. The CBN's efforts to improve transparency and liquidity may lead to changes in the exchange rate as traders adapt to the new policy framework. It is expected that this period of change and change will eventually make the foreign exchange market stable and healthy.
The Central Bank of Nigeria (CBN) issued a circular on June 18, 2023, giving additional guidance to depository banks (DMB) for operational changes in the foreign exchange market announced on June 14, 2023. The guidelines include allowing all visible and invisible transactions to be accessible to investors and exporters, providing unlimited access to income from ordinary home accounts, and allowing deposits not to exceed $10,000. per day or the equivalent of telegraphic transmission. In addition, the apex bank has introduced the use of its digital currency, called eNaira, as a payment option for export recipients. The apex bank said that this is one of its efforts to increase remittances from other countries. Despite these plans, the exchange rate continued to fluctuate in the Investor & Exporter window
