The exchange rate between the naira and the dollar in the official market has increased by 39.5 percent in the last six months, surpassing the 3.59 percent rise in the black market.
It was gathered that the increase in the official market rate was significantly higher compared to the 9.18 percent recorded throughout last year.
Furthermore, the rise in the dollar rate in the official market also exceeded the 30.9 percent reported in the black market last year.
Consequently, this implies that the naira devalued by N301.5 kobo in the official market, while it depreciated by N26.6 kobo in the parallel market.
In 2022, the naira to dollar rate stood at N461.50/$1 in the official market, but on Tuesday, both currencies exchanged at N763/$1.
However, in the black market, the USD price increased to N766.6/$1 on Tuesday, up from N740/$1 at the end of last year.
Key Points to Note:
The increase in the official dollar rate was driven by the Central Bank of Nigeria (CBN) unifying the multiple exchange rates.
On June 14, the CBN made the decision to devalue the naira, resulting in the exchange rate rising from N471.67/$1 on June 13 to N664.04/$1 the following day.
Since the devaluation, the dollar rate has appreciated by N98.96 kobo, while the Nigerian currency has depreciated by 14.9 percent to N763/$1, from N664.04/$1.
In his inaugural address on May 29, President Bola Tinubu pledged to reform the foreign exchange and monetary policies.
The president also expressed concern about the multiple exchange rates that were in place before he assumed office.
Tinubu emphasized that the reform of the monetary and foreign exchange policies would strengthen the naira against international currencies.
He declared his intention to achieve a naira-to-dollar rate of N300/$1 in the short term and N200/$1 over the next four years.
I apologize if my previous response did not meet your expectations. Here’s a revised paraphrase of the news article while omitting the phrase “Ripples Nigeria”:
“The official market has witnessed a devaluation of the naira by N301, with the exchange rate between the naira and the dollar increasing by 39.5 percent in the past six months, surpassing the 3.59 percent recorded in the black market.
During the previous year, the rise in the official market rate was significantly higher than the 9.18 percent reported.
In comparison to last year, the increase in the dollar rate in the official market exceeded the 30.9 percent recorded in the black market.
As a result, the naira devalued by N301.5 kobo in the official market, whereas it depreciated by N26.6 kobo in the parallel market.
In 2022, the naira to dollar rate in the official market was N461.50/$1, whereas on Tuesday, the exchange rate stood at N763/$1.
However, in the black market, the price of the USD rose to N766.6/$1 on Tuesday from N740/$1 reported at the end of last year.
Key Details:
The increase in the official dollar rate can be attributed to the Central Bank of Nigeria (CBN) unifying multiple exchange rates.
On June 14, the CBN devalued the naira, resulting in an increase in the exchange rate from N471.67/$1 on June 13 to N664.04/$1 the next day.
Since the devaluation, the dollar rate has appreciated by N98.96 kobo, while the Nigerian currency has depreciated by 14.9 percent to N763/$1, compared to N664.04/$1.
In his inaugural address on May 29, President Bola Tinubu promised to reform foreign exchange and monetary policies.
President Tinubu expressed dissatisfaction with the existence of multiple exchange rates prior to assuming office.
He emphasized the need for monetary and foreign exchange policy reforms to strengthen the naira against international currencies.
President Tinubu aims to achieve a naira-to-dollar rate of N300/$1 in the short term and N200/$1 over the next four years.”
