Dollar supply skyrockets at official market as Naira records marginal gain

Tuesday, 10th May 2022: The exchange rate between the naira and the US dollar closed at N418.25/$1 at the official Investors and Exporters (I&E) window.

The exchange rate at the official window grew slightly stronger against the US dollar on Tuesday to close at N418.25/$1 from N419/$1 recorded in the previous trading session. Also, forex liquidity at the market surged significantly by 341.3% to $234.54 million from $53.15 million traded on Monday.

On the other hand, the naira fell further against the US dollar on Wednesday morning at the peer-to-peer market, trading at a minimum of N602/$1 compared to N600/$1 recorded as of the same time the previous day.

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 0.36% on Monday, 9th May to stand at $39.17 billion, compared to $39.31 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 the stability of the local currency.

Trading at the official NAFEX window

Naira closed on Tuesday stronger at N418.25/$1, gaining 0.18% compared to N419/$1 recorded on Monday, 9th May 2022.

  • The opening indicative rate closed at N417.7/$1 on Tuesday 10th May 2022, which is 5 kobo lower than the N417.75/$ 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 N415.25/$1, while it sold for as low as N412/$1 during intra-day trading,
  • A total of $234.54 million was traded in FX at the official Investors and Exporters window on Tuesday.
  • According to the data from the FMDQ, forex turnover increased significantly by 341.3% from $53.15 million recorded on Monday, 9th May 2022 to $234.54 million on Tuesday.

Crypto market update

As of 22:30 (WAT) on Tuesday, the cryptocurrency market recorded a 2.61% gain to stand at $1.397 trillion, having endured significant sell-offs in the past week. However, as of press time on Wednesday, the market has reversed its gain, with a 2.91% decline to stand at $1.369 trillion.

Flagship crypto asset, bitcoin also gained 2.36% to trade at $30.79k on Tuesday, while a 1.7% decline in the early hours of Wednesday saw its value drop to $30.47k. Similarly, Ethereum dipped 0.81% to trade at $2,320.16 on Wednesday morning.

Solana dipped 3.9% to trade at $64.14, Terra recorded massive sell-offs trading at $6.48, having shed 62.42% on Wednesday morning, while Uniswap dipped 4.45% to trade at $5.8.

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