The Nigerian naira appreciated against the dollar on Wednesday, 1st November 2023, closing at N786.02/$1 at the official market.
This represents a 3.73% increase from the N815.32/$1 recorded on the previous day.
The intraday high recorded was N1101.00/$1, while the intraday low was N701.00/$1, representing a wide spread of N400/$1.
According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $105.98 million, representing a 41.82% decrease compared to the previous day.
On the black market where forex is sold unofficially, the exchange rate appreciated by 0.85%, quoted at N1170/$1, while peer-to-peer traders quoted around N1180/$1.
The federal government is considering beginning 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.
This is one of the twenty recommendations put forward by the Presidential Fiscal Policy and Tax Reform Committee, established by President Bola Tinubu in July to evaluate and provide guidance on reforms aimed at shaping Nigeria’s fiscal policy and tax system.
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.