Exchange rate gap widens as naira falls to N1,060/$

The exchange rate gap between the official and parallel market segments of the foreign exchange (FX) market has widened by over 100 percent as naira depreciated across markets on Tuesday.

Yesterday, Tuesday, the spread between the official and unofficial FX markets closed at N212 per dollar compared to N1.83 on June 22, 2023, after FX reform.

Dollar was quoted at N848.12 at the Investors’ and Exporters’ (I&E) forex window and at N1,060 at the parallel market, on Tuesday October 17, 2023.
Read also: Fuel subsidy, exchange rate reforms to boost Nigerian economy – IMF

On Tuesday June 21, 2023 the naira/dollar exchange rate converged, closing at the rate of N756 at both markets after the unification of the FX windows in the same month by the Central Bank of Nigeria (CBN).

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The closing of the exchange rate gap and the convergence followed the recent foreign exchange (FX) policy reforms carried out by the CBN.

During the FX auction on Tuesday, willing buyers and willing sellers offered the highest bid of N981/$1 and lower bid of N700/$1, data from the FMDQ indicated.

The daily foreign exchange market turnover increased by 211.62 percent to $134.28 million from $43.09 million recorded on Monday.

Update soon…

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.