Naira devalued by N301 in official market

The naira to the dollar exchange rate in the official market has risen by 39.5 percent in the last six months, higher than 3.59 percent recorded in the black market.

Ripples Nigeria gathered that the increase in the official market rate was significantly higher than the 9.18 percent recorded throughout last year.

Also, the increase in dollar rate in the official market also surpassed the 30.9 percent reported in the black market last year.

This, therefore, means that the naira devalued by N301.5 kobo in the official market but depreciated by N26.6 kobo in the parallel market.

The naira to dollar rate had at N461.50/$1 in the official market in 2022 but both currencies exchanged at N763/$1 on Tuesday.

However, in the black market, the price of the USD rose to N766.6/$1 on Tuesday from the N740/$1 reported at the end of last year.

What you need to know

The increase in the official dollar rate was driven by the unification of the multiple exchange rates by the Central Bank of Nigeria (CBN).

CBN took the decision to devalue the naira on June 14, resulting in the exchange rate rising from N471.67/$1 on June 13 to N664.04/$1 the next day.

Since the devaluation of the Naira, the dollar rate has appreciated by N98.96 kobo while the Nigerian currency depreciated by 14.9 percent to N763/$1, from N664.04/$1.

President Bola Tinubu had in his inaugural address on May 29 promised to reform the foreign exchange and monetary policies.

The president also decried the multiple exchange rates that were in place before he assumed office.

Tinubu stressed that the reform of the monetary and foreign exchange policies would strengthen the naira against international currencies.

He declared his intention to achieve a naira-to-dollar rate of N300/$1 in the short term and N200/$1 over the next four years. (Ripples Nigeria)