Naira falls to N620/$1 at peer-to-peer market as FX scarcity persists

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The exchange rate between the naira and the US dollar closed at N424.58/$1 at the Investors and Exporters (I&E) window, where forex is traded officially.

Naira appreciated slightly against the US dollar at the official market on Wednesday, with a 0.36 per cent gain to close at N424.58/$1, following a 25.01 per cent increase in forex turnover. Specifically, a total of $60.84 million in FX value exchanged hands in the market on Wednesday compared to $48.67 million that was traded in the previous trading session.

On the other hand, the exchange rate at the parallel market depreciated to N618/$1 on Wednesday, falling by 0.49 per cent compared to N615/$1 recorded on Friday, the previous week. This is according to information from Bureau De Change operators.

Also, the exchange rate at the peer-to-peer market depreciated by 0.72 per cent on Thursday morning to trade at a minimum of N620.41/$1 compared to N616/$1 recorded on Wednesday morning. This is the highest rate recorded at the unofficial market, according to data tracked by Nairalytics.

Nigeria’s external reserves increased by 0.03 per cent on Friday, 8th July 2022 to stand at $39.35 billion from $39.34 billion recorded the previous day. This represents the 23rd straight day of improvement for the nation’s foreign reserve.

The external reserve had been on a downward trend due to the continuous intervention by the Central Bank in the FX market in order to ensure the stability of the local currency. However, elevated crude oil prices have seen the reserve level improve.

The exchange rate at the official market appreciated on Wednesday, 13th July 2022, gaining 0.36 per cent to close at N424.58 to a dollar as against the N426.13/$1 recorded on Friday, 8th July 2022.The opening indicative rate closed at N424.4/$1 on Wednesday, 13th July 2022, from N423.85/$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 N424.58/$1, while it traded as low as N411.42/$1 during intra-day trading.

A total of $60.84 million in FX value exchanged hands on Wednesday, which is 25.01 per cent higher than the $46.67 million that was traded in the previous trading session.