Naira Depreciates to N840 to a Dollar at The Official Market; Trades Lower in Black Market

  • The exchange rate between the naira and the dollar witnessed the highest depreciation ever
  • At the official Investors and Exporters (I&)E window, the naira traded for N840 to a dollar before settling for N770.17
  • It also depreciated at the US greenback at the parallel market, trading at N773 to a dollar on Monday, June 26, 2023

The exchange rate between the dollar and the naira at the official Investor and Exporter (I&E) window sold as high as N840 to a dollar, the highest since the Central Bank of Nigeria (CBN) began floating the naira.

The amount is the highest ever recorded on the official window, exceeding the N815 to a dollar previously recorded.

CBN introduces free float of the naira

The exchange rate, however, closed at N768 at the end of the business after depreciating to N770.17 to a dollar.

Nigeria adopted a market-driven exchange rate policy a fortnight ago, which led to a sharp depreciation of the local currency from N471 to a dollar to over N700 to one dollar.

According to reports regarding the turnover, the I&E window recorded $198.13 million on Monday, June 26, 2023. The total turnover since the revised window was launched is about $1.4 billion.

The exchange rate has fluctuated between N750 to a dollar and N770 to a dollar in the last seven days, hitting an intra-day high.

BusinessDay reports that the naira depreciated against the dollar by 0.39% at the parallel market, AKA the black market, due to increased dollar demands.

The dollar quoted at N773 is against the N770 to a dollar it quoted on Friday, June 24, 2023.