Naira strengthens at official window amid growth in FX supply

Thursday, 28th April 2022: The exchange rate between the naira and the US dollar closed at N418.5/$1 at the official Investors and Exporters (I&E) window.

The exchange rate at the official window appreciated by 0.2% on Thursday to close at N418.5/$1 compared to N419.33/$1 recorded in the previous trading session. Also, a total of $146.81 million in FX value exchanged hands on Thursday, which represents a 77.82% increase compared to $82.56 million recorded on Wednesday.

On the other hand, the exchange rate at the peer-to-peer forex market recorded a slight depreciation to trade at N591.2/$1 on Friday morning, this represents a 0.2% downturn compared to N590/$1 it had maintained in the past two trading sessions.

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 for the fourth day in a row, with a 0.08% decline to stand at $39.65 billion as of 27th April 2022, compared to the $39.68 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 N418.5/$1 on Thursday, 28th April 2022, representing a 0.2% appreciation against the US dollar compared to N419.33/$1 recorded in the previous trading session.

  • The opening indicative rate closed at N417.23/$1 on Thursday, 28th April 2022, which is N1.15 lower than the N418.38/$ 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 N418.5/$1, while it sold for as low as N410/$1 during intra-day trading,
  • A total of $146.81 million was traded in FX at the official Investors and Exporters window on Thursday.
  • According to the data from the FMDQ, forex turnover surged by 77.82% from $82.56 million recorded on Wednesday to $146.81 million on Thursday, 28th April 2022.

Crypto market update

The crypto market is currently trailing on a negative note, with the industry market capitalization losing ground by 126 basis points as of press time of Friday to stand at $1.768 trillion. This is following a similarly bearish performance by the flagship crypto asset as bitcoin dipped 1.28% to trade at $39,244.

Ethereum in the same vein recorded a 1.55% decline to trade at $2,889, Solana declined by 1.39% to trade at $98.8375. Also, Terra dipped 3.09% to trade at $86.374, while Uniswap recorded a 1.22% decline to trade at $8.07.

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