Naira to dollar rate rises, FX supply increases amid high repatriation

On Wednesday, the exchange rate at the official market was N463.02/$1 at the time trading closed, with the dollar rate settling below Tuesday’s N462.25 kobo/$1.

The naira to dollar rate rose by N0.77 kobo, indicating the value of the naira fell by -0.16 per cent, as traders paid more on Wednesday than they did the day before.

Although FMDQ Exchange disclosed that at some point during trading, investors and exporters were charged as high as N467 and as low as N460.

At these rates, traders transacted $178.68 million in foreign exchange (forex), picking up from the $98.84 million forex transacted the previous day.

The value of transactions in the Investors’ and Exporters’ window rose by $79.84 million or 80.7 per cent, reflecting supply increased in the official market.

READ ALSO:Naira recovers, as dollar rate falls amid complaints from MTN, others

The increase comes a day after the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, said the RT200 FX programme had increased the foreign exchange repatriation into Nigeria by 40 per cent.

“I’m happy to note that the RT200 programme has made, and I use the word tremendous progress in export proceed repatriation since its establishment in February 2022,’’ Emefiele said on Tuesday.

The CBN chief added: “Available data shows that repatriation due to the programme increased by 40 percent from US$3.0 billion in 2021 to US$ 5.6 billion at the end of 2022.

“The momentum for 2023 is equally showing strong numbers and impressive prospects. In the first quarter of 2023, a total of US$1.7 billion was repatriated to the economy while about $970 million was sold at the I&E window year-to-date. The balance of the proceeds remained in the Export Domiciliary Accounts of exporters”.

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