I&E Window: Exchange Rate Hits All-Time High at N869/$1

The naira’s exchange rate against the dollar reached an intra-day high of N869/$1 at the Investor & Exporter Window, as reported by data from the FMDQ.

This marked the highest price the dollar was traded for on the official exchange rate market, surpassing the previous high of N855/$1 recorded on July 24.

Despite hitting that peak, the exchange rate eventually closed at N768.6/$1, representing a 3.85% weakening compared to the N740/$1 it closed at the previous day. The lowest trade during the day occurred at N730/$1, highlighting the market’s ongoing volatility.

The daily turnover also experienced a significant decline, falling to $88.66 million from $153.28 million recorded the day before.

The central bank’s monetary policy communique had earlier acknowledged that supply remains a major challenge in achieving exchange rate stability.

The official NAFEX rate was quoted at N778.84/$1, indicating the rate at which the official exchange is conducted.

On the parallel market, where exchange rates are sold unofficially, rates quoted as high as N872/$1, based on Nairametrics research findings.

In the peer-to-peer market, where exchanges occur using cryptocurrencies as intermediaries, the dollar was quoted for as much as N868/$1 during the day.

The British pound also experienced a decline, dropping to N1,175 from N1,165 the previous day. At the beginning of the month, the British pound had been sold for just N997, showing the currency’s fluctuations over the period.