September 28, 2022
  • September 28, 2022

Naira weakens in official market as dollar supply drops to $108m

By on May 6, 2022 0

Thursday, May 5, 2022: The exchange rate between the naira and the US dollar closed at 419 naira/$1 at the Investors and Exporters (I&E) counter, where currencies are officially traded.

The official counter exchange rate weakened against the US dollar on Thursday to close at N419/$1 from the N418/$1 recorded at the close of trading the previous week. A total of $108.24 million in exchange value was traded on Thursday, down 33.47% from the $162.7 million traded on Wednesday.

Meanwhile, the parallel market exchange rate remained stable at 590 naira to the dollar. This is according to information obtained from BDCs operating in Nigeria.

Nigeria’s external reserve depreciated by 0.39% on Wednesday (May 4th) to stand at 39.43 billion dollars, against 39.58 billion dollars recorded the previous day. The decline in the level of external reserves can be attributed to the continued intervention of the Central Bank in the foreign exchange market to ensure the stability of the local currency.

The exchange rate in the peer-to-peer market depreciated by 0.852% to trade at a low of N592/$1 on Thursday morning, against N587/$1 recorded at the same time on Wednesday.

Negotiate at the official NAFEX counter

The exchange rate at the Investors and Exporters window closed at N419/$1 on Thursday, May 5, 2022, representing a depreciation of 0.24% from the N418/$1 recorded in the previous trading session .

  • The indicative opening rate closed at N417.4/$1 on Thursday, May 5, 2022, 40 kobo higher than the N417/$ recorded in the previous trading session.
  • Furthermore, an exchange rate of N444/$1 was the highest rate recorded in intraday trading before settling at N419/$1, when it sold as low as N410/$1 during intraday trades,
  • A total of $108.24 million was traded in foreign currency at the official Investors and Exporters window on Thursday.
  • According to data from the FMDQ, forex turnover decreased by 33.47%, from $162.7 million recorded on Wednesday, May 4, 2022 to $108.24 million on Thursday.

Crypto Market Update

The crypto market crashed on Thursday, May 5, 2022 as the industry’s market cap fell 7.02% to close at $1.663 trillion at 12:17 a.m. Friday (WAT).

Bitcoin price fell 7.84% to close at $36,574.53, Ethereum fell 6.42% to close at $2,751.21. Solana also fell 8.53% to close at $84.8225, Terra fell 3.85% to close at $82.8417, while Uniswap fell 7.3% to close at 7. $.36.