Naira begins new week across FX markets on shaky grounds

Naira begins the new week on a wobbly ground having depreciated 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.

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.

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.

READ ALSO: Naira stable at N419/$1 as $172 million exchange hands at I&E window

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.

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, 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 currency had been in 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.