Exchange rate moderates across FX markets despite drop in turnover

Tuesday, 31st May 2022: The exchange rate between the naira and the US dollar closed at N419.5/$1 at the Investors and Exporters (I&E) window.

Naira appreciated by 0.18% to close at N419.5/$1 on Tuesday, from N420.25/$1 recorded in the previous trading session. On the other hand, forex supply declined by 19.84% to $98.52 million.

The exchange rate at the peer-to-peer market moderated on Wednesday, gaining 0.98% to trade at a minimum of N600/$1 as against N605.94/$1 recorded as of the same time on Tuesday. This is the lowest rate recorded since 18th May 2022.

The naira remained stable at the parallel market, trading at N608/$1 on Tuesday, which is the same recorded in the previous trading session. This is according to information from BDC operators in Nigeria.

Meanwhile, Nigeria’s external reserves depreciated further by 0.15% on Tuesday, 30th May 2022 to stand at $38.48 billion from $38.57 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 appreciated by 0.18% on Tuesday to close at N4219.5/$1 from N420.25$1 recorded on Monday.
  • The opening indicative rate closed at N418.54/$1 on Tuesday, 31st May 2022, representing a N0.16 depreciation compared to N418.38/$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 N419.5/$1, while it sold for as low as N412.38/$1 during intra-day trading.
  • A total of $98.52 million in FX value was traded in the official I&E window on Tuesday, representing a 19.84% decrease compared to $122.91 million traded as of the previous trading session.

Crypto market update

  • The crypto market recorded slight moderation on Tuesday from the rally recorded in the previous session. Notably, the market capitalization lost 0.54% to stand at $1.293 trillion as of 22:21 (WAT) on Tuesday.
  • However, the flagship crypto asset and most capitalized crypto-asset gained 0.13% on Tuesday, 31st May 2022 to trade at $31,770. On the other hand, Ethereum recorded a 2.45% decline in price to trade at $1,949.
  • Solana dipped 3.25% to trade at $45.6475, Luna recorded a 9.41% dip to trade at $0.0001136, while Uniswap gained 0.71% to trade at $5.68.

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