Naira remains stable across FX markets as CBN continues forex intervention

Friday, 3rd June 2022: The exchange rate between the naira and the US dollar closed at N419.75/$1 at the Investors and Exporters (I&E) window.

Naira depreciated further on Friday to close the week at N419.75/$1 from N419.5/$1 recorded in the previous trading session, representing a 0.06% depreciation. On the flip side, FX turnover in the market declined significantly from the record high recorded in the previous trading session, as forex supply dropped by 75.65% from $760.2 million to $185.1 million.

Notably, a total of $1.34 billion was traded in the Investors and Exporters window in the week, which is significantly higher than the $535.94 million that exchanged hands in the previous week.

Meanwhile, the exchange rate remained stable at the parallel market, depreciating marginally by 0.17% to close at N606/$1 Friday, 3rd June 2022. This is according to information from BDC operators in Nigeria.

The exchange rate at the peer-to-peer market resumed the week on a positive note as naira appreciated to its highest level since 18th of May 2022. The exchange rate at the market appreciated by 0.146% to trade at N603.6/$1 in the early hours of Monday, compared to N604.48/$1 recorded as of Friday the previous week.

Meanwhile, Nigeria’s external reserves fell by 0.01% on Thursday, 2nd June 2022 to stand at $38.47 billion from $34.48 billion recorded as of the previous day. 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 depreciated by 0.06% on Friday to close at N419.75/$1 from N419.5/$1 recorded on Thursday.

  • The opening indicative rate closed at N419.7/$1 on Friday, 3rd June 2022, representing a N0.87 downturn compared to N418.83/$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 N419.75/$1, while it sold for as low as N413/$1 during intra-day trading.
  • A total of $185.1 million in FX value was traded in the official I&E window on Friday, representing a 75.65% decrease compared to $760.2 million traded as of the previous trading session.

Crypto market update

Cryptocurrencies started the new week bullish, with rally in bitcoin, Ethereum, Solana amongst others pushing the industry market capitalization by 3.59% to stand at $1.257 trillion.

Flagship crypto asset, bitcoin gained 4.24% on Monday morning as of press time to trade at $31,155, while Ethereum recorded a 3.72% gain to trade at $1,871.92. Similarly, Solana recorded an 8.29% price increase on Monday morning to trade at $41.6725.

Uniswap in the same vein rallied by 3.44% to trade at $5.267, while Luna/US dollar on the other hand recorded a 0.1% dip to trade at $0.0000858.

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