Naira Falls to its Lowest Year-to-date as Forex Supply Declines Further
Naira falls to N415/$1 at official market as Vice President expressed concerns over forex policy
Thursday, 21st April 2022: The exchange rate between the naira and the US dollar closed at N418.33/$1 at the official Investors and Exporters (I&E) window.
Naira fell to its lowest level since 4th January 2022, depreciating by 0.32% on Wednesday to close at N418.33/$1 compared to N417/$1 recorded in the previous trading session. In the same vein, the total amount of forex sales declined by 2.81% to $151.07 million.
The exchange rate at the peer-to-peer market appreciated by 0.269% on Thursday morning to trade at a minimum of N589.5/$1, in contrast to the N591.09/$1 recorded as of the same time of the previous day.
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Meanwhile, the exchange rate at the parallel market closed at N580/$1, on Thursday, appreciating by 1.53% compared to N589/$1 traded in the previous day. This is according to information obtained from BDCs operating in Nigeria.
Meanwhile, Nigeria’s foreign reserve continue to improve on the back of bullish crude oil price. External reserve gained 0.12% on Tuesday, 19th April 2022 to stand at $39.78 billion compared to $39.74 billion recorded as of the previous day.
The Central Bank has continued to intervene in the official forex market from the external reserve in order to maintain the stability of the local currency.
Trading at the official NAFEX window
The exchange rate at the Investors and Exporters window closed at N418.33/$1 on Wednesday, 20th April 2022, representing a 0.32% depreciation compared to N417/$1 recorded in the previous trading session.
The opening indicative rate closed at N418.25/$1 on Wednesday, 20th April 2022, which is 80 kobo higher than the N417.45/$ recorded in the previous trading session.
An exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N418.33/$1, while it sold for as low as N410/$1 during intra-day trading,
A total of $151.1 million was traded in FX at the official Investors and Exporters window on Wednesday.
According to the data from the FMDQ, forex turnover decreased marginally by 2.81% from $155.44 million recorded pm Tuesday to $151.07 million on Wednesday, 20th April 2022.