Naira weakens at official market as dollar supply falls to $108m
The exchange rate between the naira and the US dollar closed at N419/$1 at the Investors and Exporters (I&E) window, where FX is traded officially.
The exchange rate at the official window weakened against the US dollar on Thursday to close at N419/$1 from N418/$1 recorded as of the close of trading activities in the previous week. A total of $108.24 million in FX value was traded on Thursday, which is 33.47% lower than the $162.7 million traded on Wednesday.
Meanwhile, the exchange rate at the parallel market remained stable at N590 to a dollar. This is according to information obtained from BDCs operating in Nigeria.
Nigeria’s external reserve depreciated by 0.39% on Wednesday, 4th May to stand at $39.43 billion, compared to $39.58 billion recorded as of the previous day. The decline in the external reserve level can be attributed to the continuous intervention by the Central Bank in the FX market in order to ensure stability of the local currency.
The exchange rate at the peer-to-peer market depreciated by 0.852% to trade at a minimum of N592/$1 on Thursday morning, compared to N587/$1 recorded as of the same time on Wednesday.
Trading at the official NAFEX window
The exchange rate at the Investors and Exporters window closed at N419/$1 on Thursday, 5th May 2022, representing a 0.24% depreciation compared to N418/$1 recorded in the previous trading session.
- The opening indicative rate closed at N417.4/$1 on Thursday 5th May 2022, which is 40 kobo higher than the N417/$ recorded in the previous trading session.
- Furthermore, an exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N419/$1, while it sold for as low as N410/$1 during intra-day trading,
- A total of $108.24 million was traded in FX at the official Investors and Exporters window on Thursday.
- According to the data from the FMDQ, forex turnover declined by 33.47% from $162.7 million recorded on Wednesday, 4th May 2022 to $108.24 million on Thursday.
Crypto market update
The crypto market crashed on Thursday, 5th May 2022 as the industry market capitalization dipped 7.02% to close at $1.663 trillion as of 12:17am on Friday (WAT).
The price of bitcoin plummeted by 7.84% to close at $36,574.53, Ethereum recorded a 6.42% decline to close at $2,751.21. Solana also dipped by 8.53% to close at $84.8225, Terra recorded a 3.85% decline to close at $82.8417, while Uniswap dipped by 7.3% to close at $7.36.
