Despite Nigeria’s headline inflation rate rising to 27.33% in October, up from 26.72% in September 2023, the naira gained against the U.S. dollar in the official market, closing at N818.99/$1. This marks a 3.81% increase compared to the previous day’s rate of N850.22/$1. The parallel market maintained a flat exchange rate at N1140/$1, with peer-to-peer traders quoting around N1127.01/$1.
Key Points:
- Inflation Hike: Nigeria’s headline inflation increased to 27.33% in October 2023, reflecting a 0.61% point rise from September. On a year-on-year basis, the inflation rate was 6.24% points higher than October 2022.
- Official Market: The naira appreciated against the dollar in the official market, reaching N818.99/$1. The intraday high was N1100/$1, while the intraday low was N751.00/$1.
- Forex Turnover: Forex turnover at the close of trading in the official market was $173.51 million, indicating a 20.87% increase compared to the previous day.
- Parallel Market: The exchange rate in the parallel market closed at N1140/$1, maintaining the same rate as the previous day.
The inflation hike reflects the impact of the removal of the fuel subsidy by the administration. Despite economic challenges, the naira’s appreciation in the official market is noteworthy, and monitoring its stability will be crucial amid evolving economic conditions.
