The exchange rate between the naira and the dollar fell to N847/$1 on Tuesday.
This represents a 6.93% depreciation from the N793/$1 recorded a day earlier.
The intra-day high recorded was N900/$1 while the intra-day low was N700/$1 representing a huge disparity of about N200/$1.
The recent drop to N847 is the second lowest the Naira as traded after it fell to as low as N848/$1 on the 17th of October.
This is according to data obtained from the official NAFEM window. Forex turnover for the day was $88 million representing an 8% rise compared to the prior day.
The external reserves also rose slightly to $33.28 billion maintaining a 6-day gaining streak that continues to keep it above $33 billion dollars since July 2023.
On the black market where forex is sold unofficially, the exchange rate remained weak quoting as low as N1300/$1 while peer-to-peer traders quoted around N1,256/$1.
A quick check on Wednesday morning however indicates crypto traders were quoting as high as N1,274/$1 for the dollar.
Meanwhile, the federal government may soon begin 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.
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.
Taking to his X (Twitter) account, Oyedele highlighted the key developments from their findings presented to the President.
He said that the
- “Imposition of excise tax on foreign exchange transactions outside the official market” is part of what was proposed to the federal government.”
Nairametrics opines this tax may take the form of taxing deposits on forex deposits and withdrawals from domiciliary accounts of which the inflows or outflows cannot be tracked to the official forex market.