Naira drops to N747/$1 at parallel market

The exchange rate between the naira and the US dollar at the black market depreciated on Tuesday, trading at an average of N747/$1. This represents a 1.63% fall compared to N735/$1 maintained in the last three trading sessions.

The downturn in the black market was attributed to increased demand for FX as a result of the coming Chinese New Year holiday.

China, which is set to go on holiday between the 21st and 27th of January will close trading activities during the period, hence prompting Nigerian traders to preorder goods ahead of the holiday.

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Similarly, the exchange rate at the cryptocurrency P2P exchange depreciated by 0.50% on Tuesday morning to trade at a minimum of N747.7/$1, compared to N743.95/$1 recorded as of the same time on Monday.

Meanwhile, the exchange rate at the investors and exporters (I&E) window closed at N461.5/$1 on Monday, 16th January 2023, a 0.09% improvement from N461.9/$1 recorded in the previous trading session.

Forex turnover surged by 175.2% on Monday as a sum of $198.6 million exchanged hands in contrast to $72.18 million that was traded on Friday, 13th January 2023.

Nigeria’s external reserves however, stood at $37.206 billion as of 13th January 2023, representing a marginal decrease of 0.002% from the $37.206 billion recorded as 12th December 2022, a reversal from the seventh consecutive increase it had recorded.

The exchange rate at the official market closed at N461.5/$1 on Monday, 16th January 2023, compared to N461.9/$1 recorded in the previous trading session.

The opening indicative rate closed at N461/$1 on Monday, 16th January 2023.

Furthermore, an exchange rate of N465.5/$1 was the highest rate recorded during intra-day trading before it settled at N461.5/1, while it traded for as low as N440/$1 during intra-day trading.

A sum of $198.6 million in FX value exchanged hands at the I&E window on Monday, which is 175.15% higher than the $72.18 million that was traded in the previous session.