Naira falls at I&E window as FX turnover declines to 3-week low

Wednesday, 27th April 2022: The exchange rate between the naira and the US dollar closed at N419.33/$1 at the official Investors and Exporters (I&E) window.

Naira depreciated further against the US dollar on Wednesday to close at N419.33 to a dollar, representing a 0.2% fall compared to N418.52/$1 recorded in the previous trading session. Also, dollar supply in the official FX market dipped by 24.55% to $82.56 million, which is the lowest in over 3 weeks of trading.

On the other hand, the exchange rate maintained stability at the parallel market at N590 to a dollar. This is according to information obtained from BDCs operating in Nigeria. Also, the exchange rate at the peer-to-peer market remained stable on Thursday morning, trading at a minimum of N590/$1, which is the same as recorded on Wednesday, 27th April 2022.

Nigeria’s external reserve depreciated for the third day in a row, with a 0.09% decline to stand at $39.68 billion as of 26th April 2022, compared to the $39.71 billion recorded as of the previous day. Meanwhile, 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.

Trading at the official NAFEX window

The exchange rate at the Investors and Exporters window closed at N419.33/$1 on Wednesday, 27th April 2022, representing a 0.2% depreciation against the US dollar compared to N418.5/$1 recorded in the previous trading session.

  • The opening indicative rate closed at N418.38/$1 on Wednesday, 27th April 2022, which is 88 kobo higher than the N417.5/$ recorded in the previous trading session.
  • An exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N419.33/$1, while it sold for as low as N410/$1 during intra-day trading,
  • A total of $82.56 million was traded in FX at the official Investors and Exporters window on Wednesday.
  • According to the data from the FMDQ, forex turnover declined significantly by 24.55% from $109.43 million recorded on Tuesday to $82.56 million on Wednesday, 27th April 2022.

Crypto market update

Bitcoin traded bullish on Wednesday, following the downturn recorded earlier in the week, when the flagship crypto-asset fell below its $40k threshold. The most capitalized crypto-asset gained 2.61% on Wednesday to close at $39,134.97. The asset has also gained 0.7% in the early trading hours of Thursday morning, edging closer to reclaiming its $40k status.

The cryptocurrency market also gained 2% in market capitalization to close at $1.764 trillion on Wednesday, while it has gained another 0.42% to stand at $1.78 trillion as of press time.

In the previous trading session, Ethereum gained 2.05% to close at $2,866.77, Solana rallied 2.41% to close at $98.0325, while Terra gained 0.38% to close at $88.82 on Wednesday. Also, Uniswap recorded a 2.37% gain to close at $8.19.

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