Naira begins week on negative note, falls at official market

Nigeria’s exchange started the week on a negative note as the naira fell against the US dollar by 0.18% to close at N420.25/$1 compared to N419.5/$1 recorded at the end of the previous week. This is despite the 13.97% increase in forex turnover as $122.91 million exchanged hands in the market.

On the other hand, the exchange rate at the peer-to-peer market recorded slight moderation, gaining 0.01% to trade at a minimum of N605.94/$1 on Tuesday morning as against N606/$1 recorded as of the same time on Monday.

In the same vein, the naira appreciated marginally to N608/$1 on Monday, representing a 0.33% appreciation compared to N640/$1 recorded as of the previous trading session. This is according to information from BDC operators in Nigeria.

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Meanwhile, Nigeria’s external reserves depreciated further by 0.07% on Friday, 27th May 2022 to stand at $38.54 billion from $38.57 billion recorded as of the previous day. The decline in the external reserve level can be attributed to the continuous intervention by the Central Bank in the FX market in order to ensure the stability of the local currency.

The exchange rate depreciated by 0.19% on Monday to close at N420.25/$1 from N419.5/$1 recorded on Friday.

The opening indicative rate closed at N418.38/$1 on Monday, 30th May 2022, representing a N0.31 depreciation compared to N418.07/$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 N420.25/$1, while it sold for as low as N410/$1 during intra-day trading.

A total of $122.91 million in FX value was traded in the official I&E window on Monday, representing a 13.97% increase compared to $107.84 million traded on Friday, last week.