The Nigerian naira appreciated against the dollar on Friday, October 27, 2023, closing at N7.89.94/$1.
This represents a 6.26% increase from the N837.49/$1 recorded on the previous day.
The intraday high recorded was N900/$1, while the intraday low was N696.06/$1, representing a wide spread of N203.94/$1.
According to data obtained from the official NAFEM window, forex turnover for the day was $259.84 million, representing a 129.50% increase compared to the previous day.
The external reserves also rose slightly to $33.326 billion, maintaining a nine-day gaining streak that continues to keep it above $33 billion since July 2023.
On the black market where forex is sold unofficially, the exchange rate tough appreciated with a marginal 0.39%, quoted at N1295/$1, while peer-to-peer traders quoted around N1148.01/$1.
A quick check on Saturday morning, however, indicates that crypto traders were quoting as high as N1156.47/$1 for the dollar.
More insights
The federal government is considering beginning the imposition of excise tax penalties on foreign exchange transactions done outside the official market window as part of the moves to discourage multiple exchange rates in the country.
This is one of the twenty recommendations put forward by the Presidential Fiscal Policy and Tax Reform Committee, established by President Bola Tinubu in July to evaluate and provide guidance on reforms aimed at shaping Nigeria’s fiscal policy and tax system.
The Tax Committee, led by Taiwo Oyedele, proposed a set of “quick win” recommendations.
These recommendations aim to tackle urgent economic concerns, such as exchange rate management, the consequences of removing fuel subsidies, controlling inflation, and promoting economic growth.
One of these suggestions is the introduction of an excise tax on foreign exchange transactions that occur outside the official market.