CBN’s foreign reserve plunges further as exchange rate weakens across FX markets

Thursday, 26th May 2022: The exchange rate between the naira and the US dollar closed at N418.88/$1 at the Investors and Exporters (I&E) window.

Naira depreciated marginally against the US dollar on Thursday, falling by 0.21% to close at N418.88/$1 compared to N418/$1 recorded as of the close of trading activities on Wednesday. The depreciation is despite a 45.35% increase in the amount of FX traded at the official market.

Notably, forex turnover increased by 45.35% to $157.46 million from $108.33 million that exchanged hands in the previous trading session.

Also, the exchange rate at the peer-to-peer market declined further by 0.07% to trade at a minimum of $608.99/$1 on Friday morning, compared to N608.55/$1 recorded as of the same time the previous day.

Meanwhile, the exchange rate at the parallel market closed at N609/$1 on Thursday, the same recorded in the previous trading session. This is according to information obtained from BDCs operating in Nigeria.

Nigeria’s external reserves depreciated further by 0.07% on Wednesday to stand at $38.59 billion from $38.63 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

The exchange rate depreciated by 0.21% on Thursday to close at N418.88/$1 from N418/$1 recorded on Wednesday.

  • The opening indicative rate closed at N419/$1 on Thursday, 26th May 2022, N1.21 depreciation appreciation compared to N417.79/$1 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 N418.88/$1, while it sold for as low as N410/$1 during intra-day trading.
  • A total of $157.46 million in FX value was traded on Thursday, representing a 45.35% increase compared to $108.33 million traded on Wednesday.

Crypto market update

The crypto market started trading activities on Friday on a bearish note as the market lost 1.46% in capitalization as of press time to stand at $1.179 trillion.

Flagship crypto asset and the most capitalized cryptocurrency has lost 1.05% to trade at $28,875.73, while Ethereum, dipped 1.8% to trade at $1,759.97.

In the same vein, Solana recorded a 5.27% price depreciation to trade at $41.1725, Uniswap recorded a 2.43% decline to trade at $4.82, while Luna dipped 0.21% to trade at $0.00014969.

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