The Chair of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has disclosed that the federal government aims to achieve a dollar exchange rate of N750 per dollar at the Investors’ and Exporters’ (I&E) Window by December.
In an interview with Bloomberg News, Oyedele outlined that this objective would involve the implementation of new foreign exchange regulations, including a crackdown on illegal currency trading, with the aim of reducing the 45 percent gap between the official exchange rate and the rate at which the dollar is sold on the black market in the country.
The government also intends to clear backlogs of dollar demand estimated at about $6.7 billion, bolster the naira forward market, and establish transparent rules for the operation of the official foreign exchange market.
Moreover, the plan includes an expansion of the official market to encompass all legitimate transactions while addressing the illicit “black market” for foreign currency.
Oyedele expressed confidence that these measures will take effect before December, and within a few weeks, results will become apparent. The ultimate goal is for the naira to reach its true value, as opposed to the current rate in the parallel market.
He emphasized that a “fair price” for the dollar lies between 650 and 750 naira, translating to N802.59 to N1,165, respectively, compared to the rate in the black market. This effort is part of the government’s strategy to address the disparity between the official exchange rate and the black market rate and stabilize the foreign exchange market in Nigeria.
