Naira suffers another depreciation as forex turnover drops to 2-month low

The exchange rate started the week on a negative note, depreciating further by 0.12% on Monday to close at N420.25/$1 at the Investors and Exporters window. The fall in the local currency follows a 73.4% decline in FX supply in the market to a 2-month low.

Forex turnover at the official market dropped by 73.4% to $49.24 million on Monday compared to $185.1 million traded on Friday, last week.

Meanwhile, the exchange rate remained stable at the parallel market, closing at N606 to a dollar on Monday, same as recorded on Friday, 3rd June 2022. This is according to information from BDC operators in Nigeria.

The exchange rate at the P2P market appreciated by 0.18% to trade at N602.5/$1 in the early hours of Tuesday, compared to N603.6/$1 recorded on Monday.

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The opening indicative rate closed at N420.1/$1 on Monday, 6th June 2022, representing a N0.40 downturn compared to N419.7/$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 N413/$1 during intra-day trading.

A total of $49.24 million in FX value was traded in the official I&E window on Monday, representing a 73.4% decrease compared to $185.1 million traded as of the previous trading session.

Nigeria’s external reserves fell by 0.04% on Friday, 3rd June 2022 to stand at $38.46 billion from $38.48 billion recorded as of the previous day. The nation’s external had been on 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.