The exchange rate between the United States dollar and the Nigerian naira witnessed significant fluctuations on Wednesday.
The dollar rate extended its upward swing, closing at N773.42 per $1 in the Investors’ and Exporters (I&E) window of the official market, a troubling trend that has caught the attention of both investors and the general public.
Data from the official market rate aggregator revealed that the dollar rate had inched higher from the previous day’s N770.72/$1 rate, casting a cloud of uncertainty over the country’s economic stability.
The exchange rate rollercoaster, spanning from a high of N799.90/$1 to a low of N700/$1 throughout the day, reflects the highest and lowest rates offered before the official market’s closing bell.
This continuous ascent of the dollar has weighed heavily on foreign exchange transactions, resulting in a remarkable 147.50% depreciation in the value of forex traded in the I&E window.
This translates to authorized dealers transacting $66.88 million less in forex on Wednesday, compared to a substantial $112.22 million traded the preceding day.
Meanwhile, in the black market, the dollar rate soared past the N900 mark, averaging at N901/$1. The naira, on the other hand, depreciated by a staggering N33.5 kobo, compared to its previous day’s closing rate of N867.5/$1.
The price of the British pound also experienced a sharp rise, climbing to N1163.6/£1, marking a N38.3 kobo increase compared to Tuesday’s average rate of N1125.3/£1.
Similarly, the euro witnessed a surge in its average rate from N961.3/€1 to N988.2/€1, signifying a significant N26.9 kobo hike in the price of the European currency.
These fluctuations in exchange rates emphasize the volatility in Nigeria’s forex market, posing challenges to businesses, investors, and policymakers who must navigate this economic uncertainty.
As the nation watches these developments closely, the need for a stable forex market remains a pressing concern.