The naira appreciated by 1.79 per cent against the United States dollar on the Investor & Exporter forex window on Tuesday, closing at N756.61/$.
On Monday, local currency slumped to 770.38/$ at the close of trading on the I&E window on Monday, from 686.96/$ at the close of trading on Friday.
According to figures obtained from the FMDQ, the trading, which commenced at 701.75/$ on Tuesday reached a high of 781/$ before closing at 756.61/$.
The trading also recorded improved turnover of $134.47m on Tuesday from $78.03m at the close of trading on Monday.
At the parallel market, the naira was bought and sold at 750/$ and 760/$, according to some Bureau de Change Operators who spoke to The PUNCH.
A BDC operator in Lagos, Mr Abdul, said, “The rate has been quite unstable recently. Today, the dollar was bought and sold at 750/$ and 760/$. Euro was bought and sold at 810/ € and 820/ €. Pound Sterling was bought and sold at 945/ £ and 957/ £.”
The Central Bank of Nigeria, last week directed Deposit Money Banks to remove the rate cap on the naira at the I&E window to allow for a free float of the national currency against the dollar and other global currencies.
Before the announcement, the naira had closed at the I&E window at 471.67/$, while the parallel market recorded 740/$.
A professor of Economics at Babcock University and former President of the Chartered Institute of Bankers of Nigeria, Prof. Segun Ajibola, had described the former multiple exchange rate regime as a chess pool of corruption.
He said sources of foreign exchange such as non-oil exports, remittances, and foreign direct investments needed to be expanded, in addition to taking maximum advantage of OPEC quota on crude oil exportation.
He said the pressure on the official and unofficial markets could simmer down while the supply of foreign exchange picked up.
He said, “By and large the two rates will collapse, and a new equilibrium rate of exchange achieved in the market. That is, the desired unified exchange rate.”
CREDIT: PUNCH
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