Naira to Dollar Rate Today
Applesbite brings you the latest news/updates on dollar to Naira exchange rate today. The US Federal Reserve and at least 5 other central banks in Europe had recently announced new measures to ease dollar liquidity and strains in the global financial system following the collapse of three banks in just one week.
Below are the latest news on on how the Nigerian currency, the Naira, has been reacting to local and international events relating to foreign exchange movements:
Dollar To Naira Rate Hit N461.50kobo In Official Market, Droped In Black Market On March 27
The United States Dollar appreciated against the Nigerian currency, Naira, on Monday, 27 March 2023, as the exchange rate closed at N461.50 kobo in the official market.
Both currencies had exchanged for N461.33 kobo/$1 last week Friday. This indicates the Naira weakened by 0.03 per cent or N0.17 kobo.
According to data from the FMDQ Exchange, before the exchange rate settled at N461.50 kobo, one Dollar exchanged at N462.42, which was Monday’s highest level, and a low of N460.
The value of the Naira fell on the back of a decrease in foreign exchange supply in the Investors’ and Exporters’ window of the official market.
Applesbite gathered from the official market data that Investors and Exporters traded $101.77 million worth of foreign exchange.
The value of the forex transacted on Monday fell by –57.83 per cent or $139.61 million when compared to the $241.38 million exchanged on Friday.
In the Bureau De Change window of the black market on Tuesday, 28 March 2023, the exchange rate between the Dollar and the Naira was N745/$1, depreciating from the N746/$1 the currencies exchanged for on Monday.
The Naira’s decline comes as the Central Bank of Nigeria (CBN) releases more Naira notes to Deposit Money Banks (DMBs) to end the scarcity of the local notes.
Spokesperson of the CBN, Isa Abdulmumin, had stated on Friday that commercial banks have received substantial amounts in various denominations.
“Central Bank of Nigeria evacuates banknotes to Deposit Money Banks,” Abdulmumin stated in a statement posted by the financial regulator on Twitter.
Note that the scarcity of Naira had increased the amount spent by traders in need of foreign exchange, as Nigerians had to buy Naira, paying N1,000 to obtain N5,000, which traders, in turn, had to offer in exchange for Dollars at the official or black market.
Naira Gained In Official Market Despite Dollar Crunch On March 24
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The foreign exchange (Forex) rate between Nigeria and the Dollar fell to N461.33 kobo/$1 on Friday, 24 March 2023, as the former appreciated against the latter.
Applesbite gathered that the value of the Naira rose by N0.34 kobo or 0.07 per cent at the end of trading in the official market.
The Dollar rate depreciated to N461.33 kobo below the N461.67 kobo/$1 reported on Thursday, 23 March 2023, data obtained from FMDQ Exchange showed.
Before closing down, the Dollar rate had increased to as high as N462.43 kobo. The United States currency also exchanged at a low of N460 during trading on Friday.
Also, over $241.38 million worth of foreign exchange was traded by investors and exporters on Friday, indicating forex supply rose by 201.61 per cent.
Investors and exporters traded $161.35 million more than the $80.03 million worth of foreign exchange recorded in the official market the day before.
Foreign exchange supply in the official market has been scarce, with the Central Bank of Nigeria (CBN) limiting access to the funds.
This is due to the country’s low international reserves which have depleted by –1.08 per cent or $402.04 million within three months, from January to date.
According to the foreign reserves record obtained from the central bank, the international reserves depreciated from $37.06 billion recorded on 3 January 2023 to $37.06 billion.
Due to the Dollar crunch, commercial banks have had to review their foreign exchange application policy, extending processing time and reducing the forex each applicant can obtain.
Foreign exchange applicants obtain forex through Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), with the worth of forex now $2000 and processing time now 120 days.
In a statement to its customers, one of the commercial banks, Access Bank, said: “PTA / BTA requests have now processed a maximum of twice annually per applicant to the tune of $2,000 per application where the request is within 14 days of the travel date. International school fees and Upkeep requests are processed within 120 days from the date of approval.”
