The Nigerian currency experienced its largest daily gain since 2019

<span>The Nigerian currency experienced its largest daily gain since 2019</span>, <p>On Tuesday, July 18th, 2023, the naira to dollar exchange rate increased by 6.58% to reach N742.93/$1. The largest day gain Nigeria has experienced since the amended I&E window was introduced on July 14, 2023, according to a report by the Nigerian business news outlet Nairametrics. The daily gain is also the most since at least 2019.</p>, <p>Additionally, FX turnover increased by a staggering 352% to finish at 156.29 trillion, which is the highest level since June 30, 2023. Despite ending the day with a firmer exchange rate, the P2P black market rate dropped to as low as N841/$1, while the exchange rate reached an intraday high of N831/$1.</p>, <p>According to the analysis from the business news agency, the weakening of the naira over the last 10 days may have triggered a supply in the I&E window.</p>, <p>The rise in forex turnover is a sign of more trading activity even if there is no evidence to support this prediction.</p>, <p>Despite the shortage of supplies, demand pressure is still there on the illicit market. The difference between the exchange rate in the I&E window and the black market rate is between N80 and N100 at N742.93/$1, making it one of the largest differences that we have also noted.</p>, <p>The soaring inflation rate is another big issue for the stability of currency rates, according to exchange rate professionals. The country's National Bureau of Statistics recorded an inflation rate of 22.79% for the week, which is lower than the US's greater 3% inflation rate. The greater the gap, the more naira is required to buy one dollar.</p>, <p>According to central bank figures for June 2023, the money supply increased to about N64 trillion during this time.</p>, <p>The currency rate peaked at N831/$1 and started off at N788.17/$1. The naira also hit a low of N707.99 against the dollar, showing significant market instability.</p>, <p>The naira to US dollar exchange rate on NAFEX has ended at an average of N790.8/$1. F