The Nigerian naira experienced a 1.79% appreciation against the United States dollar on Tuesday, closing at N756.61/$ on the Investor & Exporter forex window. This follows a decline in value on Monday when it closed at 770.38/$. The trading session on Tuesday started at 701.75/$ and reached a high of 781/$ before settling at 756.61/$, according to figures from FMDQ Group.
Furthermore, there was an increase in turnover, with $134.47 million traded on Tuesday compared to $78.03 million on Monday. In the parallel market, the naira was bought and sold at 750/$ and 760/$ respectively.
A Bureau De Change (BDC) operator in Lagos mentioned that the exchange rate has been volatile recently, with the dollar being bought and sold at 750/$ and 760/$. Euro was bought and sold at 810/€ and 820/€, while Pound Sterling was bought and sold at 945/£ and 957/£.
It’s worth noting that the Central Bank of Nigeria recently directed Deposit Money Banks to remove the rate cap on the naira at the I&E window, allowing for a free float of the currency against the dollar and other global currencies. Prior to this directive, the naira closed at 471.67/$ on the I&E window, while the parallel market recorded an exchange rate of 740/$.