Naira depreciates again as Dollar supply falls sharply at I&E window

The exchange rate depreciated on Tuesday to close at N418.5 to a dollar, representing a 0.29% downturn compared to the N417.3/$1 recorded as of the close of trading activities on the previous day.

The depreciation follows a 62.41% drop in forex turnover as $109.43 million exchanged hands.

Also, naira depreciated by 0.51% on Tuesday to close at N590/$1, as against the N587/$ rate sold in the previous session. This is according to information obtained from BDCs operating in Nigeria.

On the other hand, the exchange rate at the peer-to-peer market recorded a slight appreciation to trade at a minimum of N590/$1 on Wednesday morning, which is 0.017% lower than the rate recorded in the previous trading session.

Nigeria’s external reserve depreciated for the second day in a row, with a 0.23% decline to stand at $39.71 billion as of 25th April 2022, compared to the $39.81 billion recorded as of the previous day.

READ ALSO: Naira rebounds as FX turnover improves significantly

Meanwhile, 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 stability of the local currency.

The opening indicative rate closed at N417.5/$1 on Tuesday, 26th April 2022, which is 58 kobo higher than the N416.92/$ recorded in the previous trading session.

An exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N418.5/$1, while it sold for as low as N410/$1 during intra-day trading,

A total of $109.43 million was traded in FX at the official Investors and Exporters window on Tuesday.

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According to the data from the FMDQ, forex turnover declined significantly by 62.41% from $291.1 million recorded on Monday to $109.43 million on Tuesday, 26th April 2022.