On Friday, October 27, 2023, the Nigerian naira experienced a positive increase in value against the US dollar, with an exchange rate of N7.89.94/$1. This marks a 6.26% rise from the previous day’s rate of N837.49/$1.
Throughout the day, the naira’s value peaked at N900/$1 and reached its lowest point at N696.06/$1, resulting in a considerable gap of N203.94/$1 between the highest and lowest rates.
Data sourced from the official NAFEM window reveals that there was a forex turnover of $259.84 million for the day, indicating a significant 129.50% increase compared to the previous day’s turnover.
Furthermore, the country’s external reserves experienced a small increase to $33.326 billion. This upward trend has persisted for nine consecutive days, ensuring that the reserves remain above the $33 billion mark since July 2023.
On the unofficial black market, the exchange rate for forex has appreciated slightly by 0.39% to N1295/$1, while peer-to-peer traders are quoting around N1148.01/$1. However, crypto traders were quoting even higher at N1156.47/$1 for the dollar on Saturday morning.
In an effort to discourage multiple exchange rates in the country, the federal government is considering imposing excise tax penalties on foreign exchange transactions conducted outside the official market.
This recommendation is one of the twenty proposed by the Presidential Fiscal Policy and Tax Reform Committee, which was established by President Bola Tinubu in July to assess and guide reforms in Nigeria’s fiscal policy and tax system.
Proposed by Taiwo Oyedele and his team, the Tax Committee has put forward a series of immediate measures to address pressing economic issues, such as exchange rate management, the repercussions of eliminating fuel subsidies, inflation control, and the stimulation of economic growth.
Among these proposals is the implementation of an excise tax on foreign exchange transactions conducted outside the official market.