Dollar To Naira Exchange rate falls big at I&E window as dollar supply declines by 17%
…the Dollar To Naira exchange rate at the black market closed at N585/$1 on April 21st.
At the official Investors and Exporters (I&E) window, the Dollar To Naira exchange rate closed at N419.5/$1 on Thursday April 21.
The naira fell to its lowest level since 4th January 2022 on Thursday, depreciating 0.28 percent to close at N419.5/$1, down from N418.33/$1 in the previous trading session. This is the second consecutive day that the local currency has depreciated against the US dollar at the official window.
The market is undergoing a correction as a result of a decline in the market’s dollar supply. Notably, forex turnover fell 17.36 percent from the previous day to $124.85 million on Thursday, the lowest level in the four trading sessions.
Additionally, the exchange rate on the peer-to-peer market depreciated by 0.09 percent on Friday morning, trading at a minimum of N590/$1, down from N589.5/$1 the previous day.
Meanwhile, the parallel market exchange rate closed at N585/$1 on Thursday, down 0.86 percent from the previous day’s close of N580/$1. This is based on data gathered from BDCs operating in Nigeria.
On the other hand, Nigeria’s foreign reserves continue to grow as a result of rising crude oil prices. External reserves increased by 0.034 percent on Wednesday, 20th April 2022, to $39.79 billion, up from $39.78 billion the previous day.
Dollar To Naira Exchange intervention by CBN
The Central Bank has continued to intervene in the official foreign exchange market with funds from its external reserves in order to maintain the local currency’s stability.
Trading at the NAFEX’s official window
The Investors and Exporters window closed at N419.5/$1 on Thursday, 21st April 2022, a 0.28 percent depreciation from the previous trading session’s close of N418.33/$1.
Current state of the cryptocurrency market.
The cryptocurrency market closed in the red on Thursday, losing 1.83 percent as of 11:18pm, Nigerian time, to $1.846 trillion, despite a positive start to the day.
Bitcoin, the crypto industry’s flagship asset and the most valuable cryptocurrency, fell 1.44 percent to $40,778 at press time, while Ethereum fell 2.27 percent to $3,007.22.
In the same vein, Solana’s price fell 3.59 percent to $101.81, Uniswap’s price fell 4.08 percent to $8.94, and Terra’s price fell 4.09 percent to $90.92.
It is worth noting, however, that the crypto market began trading on a positive note on Friday, with the industry’s market capitalization increasing 0.84 percent to $1.851 trillion as of the early hours of Friday morning.
That is all the latest news in Nigeria today on Dollar To Naira Crashes Massively at I&E window as USD supply slides