Dollar to Naira Today Monday, 22 August 2022

The dollar to Naira exchange rate deteriorated with Nigeria’s persistent forex scarcity and rising demand for the United States Dollar.

Expert at Agusto Consulting, Mr. Jimi Ogbobine, explained that Nigeria’s exchange scarcity issue is a result of supply challenges in the forex market.

He said “The recent jump we are seeing is basically a result of a supply crisis in the forex market. The foundation of all of these is demand versus supply and when demand outweighs supply you will see this kind of currency depreciation.”

“If the central bank was able to meet forex demand, then we will not see this kind of price distortion. On one end, Nigeria is not able to meet forex supply and on the other end we are trying to restrict and constrict demand which means that quite a number of legitimate requests for forex are now being diverted to the parallel market.

“So, while the official market seems relatively calm, the reality of the supply shortage is playing out in the parallel market where more legitimate request for forex is being diverted to because the official market is not able to demand.”

Dollar to Naira Today Official Market

The decline in the value of the Nigerian Naira extended to the Investors and Exporters (I&E) forex window. The  Nigerian Naira traded at N429.05 to a United States Dollar on Friday, down from N428 it opened.

On Friday, currency traders at the I&E window transacted $50.22 forex value on Friday.

Last year, the central bank adopted the I&E exchange rate as Nigeria’s official foreign exchange rate in an effort to close the gap between the nation’s exchange rates in accordance with its long-term vision of having a single forex rate like other nations.

Dollar to Naira Today CBN Rates

As of Friday, the CBN bought the U.S. Dollar at  N420.4, down from the N418.89 it purchased it week ago and sold the American currency at a difference of N1 for N421.4 per U.S. Dollar.

However, the Pounds Sterling improved from N508.7419 a unit exchange a week ago to N497.3752 and sold at N498.5583 as of the bank’s latest update. The Euro common currency, Swiss Franc and Yen were exchanged as shown below.