Naira rebounds as FX turnover improves significantly

Naira made a recovery on Monday, starting the week with a 0.25% appreciation to close at N417.3/$1 compared to N418.33/$1 recorded in the previous day. This follows a significant improvement in the amount of traded FX in the market.

The opening indicative rate closed at N416.92/$1 on Monday, 25th April 2022, which is 48 kobo lower than the N417.4/$ 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 N417.31, while it sold for as low as N410/$1 during intra-day trading,

A total of $291.1 million was traded in FX at the official Investors and Exporters window on Monday.

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According to the data from the FMDQ, forex turnover surged by 72.18% from $169.1 million recorded on Friday to $291.1 million on Monday, 25th April 2022.

FOREX turnover surged by 72.18% on Monday to $291.1 million compared to $169.1 million recorded on Friday last week.

This also represents the highest daily turnover recorded at I&E window year-to-date.

On the other hand, the exchange rate at the peer-to-peer market depreciated marginally by 0.102% on Tuesday morning to trade at a minimum of N590.1/$1, in contrast to the N589.5/$1 recorded as of the same time of the previous day.

Meanwhile, the exchange rate at the parallel market closed at N587/$1, on Monday, depreciating by 0.17% compared to N586/$1 traded in the previous day. This is according to information obtained from BDCs operating in Nigeria.

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Nigeria’s foreign reserve in the same vein, returned to declining ways as the reserve recorded its first depreciation since 1st of April 2022. The external reserve level dipped by 0.01% on Friday, 22nd April 2022 to stand at $39.8 billion compared to $39.81 billion recorded as of the previous day.

It is worth noting that 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.