Naira gains against dollar across markets as $172 million exchange hands at I&E window

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

Naira appreciated by 0.12% to close at N419/$1 on Wednesday, from N419.5$1 recorded in the previous trading session. This is the second consecutive daily gain for the Nigerian naira against the US dollar at the official market. This is following a 74.56% increase in forex turnover in the market.

In the same vein, the exchange rate moderated at the parallel market, having closed at N605/$1 compared to N608/$1 recorded in the previous trading session. This is according to information from BDC operators in Nigeria.

On the other hand, the exchange rate at the peer-to-peer market depreciated on Thursday morning, trading at a minimum of N604/$1 as against N600/$1 recorded as of the same time on Wednesday.

Meanwhile, Nigeria’s external reserves recorded its first increase in over a month, albeit marginal. Foreign reserves increased by 67,768 on Tuesday, 31st May 2022. The nation’s external had been on a downturn since 25th April 2022 largely due 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 0.12% on Wednesday to close at N419/$1 from N419.5/$1 recorded on Tuesday.
  • The opening indicative rate closed at N418.21/$1 on Wednesday, 1st June 2022, representing a N0.33 appreciation compared to N418.54/$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/$1, while it sold for as low as N410/$1 during intra-day trading.
  • A total of $171.98 million in FX value was traded in the official I&E window on Wednesday, representing a 74.56% increase compared to $98.52 million traded as of the previous trading session.

Crypto market update

  • The cryptocurrency market closed bearish on Wednesday, as the market capitalization lost 6.34% to close at $1.211 trillion. Also, the price of bitcoin took a deep dip, losing 6.71% to trade at $29,632.34 as of 23:30 (WAT) on Wednesday.
  • Similarly, Ethereum recorded a 6.92% decline to trade at $1,806.32, while Solana dipped 11.4% to trade at $40.53. It is worth noting that Uniswap and Luna both recorded 9.84% and 13.1% decline to trade at $5.13 and $0.0001 respectively.

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