Naira Falls Massively At I&E Window Despite Improved Dollar Supply

Naira has fallen massively at I&E Window despite improved dollar supply in the market.

Glamtush reports that the exchange rate between the naira and the US dollar closed at N416.17/$1 at the official Investors and Exporters (I&E) window.

This online newspaper understands that naira started the week on a negative note with a 0.08% depreciation to close at N417/$1 on Monday, from N416.67/$1 recorded as of the close of trading activities in the previous week. This is despite a 17.4% increase in dollar supply in the official market.

In the same vein, the exchange rate at the peer-to-peer market depreciated marginally by 0.17% to trade at a minimum of N587/$1 on Tuesday morning compared to N586/$1 recorded in the previous day. Naira had dropped significantly on Monday from N576/$1 recorded as of the close of trade on Friday.

On the hand, the exchange rate at the parallel market closed flat at N587/$1, the same as recorded in the previous trading session. This is according to information obtained from BDCs operating in Nigeria.

Meanwhile, Nigeria’s foreign reserve improved by 0.03% to stand at $39.66 billion compared to $39.65 billion recorded as of the previous day. Meanwhile, the Central Bank has continued to intervene in the official forex market from the external reserve in order to maintain the stability of the local currency.

Trading at the official NAFEX window

The exchange rate at the Investors and Exporters window closed at N417/$1 on Monday, 11th April 2022, representing a 0.08% depreciation compared to N416.67/$1 recorded in the previous trading session.

The opening indicative rate closed at N416.15/$1 on Monday, 11th April 2022, appreciating marginally by 0.02 kobo compared to N416.17 recorded last week’s Friday.
An exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N417/$1, while it sold for as low as N410/$1 during intra-day trading,
A total of $127.12 million was traded in FX at the official Investors and Exporters window on Monday.
According to the data from the FMDQ, forex turnover increased by 17.4% from $108.28 million recorded on Friday to $127.12 million on Monday, 11th April 2022.

Crypto market update

The crypto market on Tuesday morning started trading activities on a positive note, printing a 0.88% increase in the industry market capitalization to stand at $1.814 trillion. The positive movement in the market was triggered by the 1.08% increase in the price of the most capitalized crypto asset, bitcoin, which was trading at $39,936.87 as of press time.

Ethereum also followed in the same direction with a 0.55% increase to trade at $2,994.81 on Tuesday morning, while Solana gained 1.69% to trade at $101.4975.

Terra also gained 1.2% to trade at $83.5827, while Uniswap recorded a 2.67% appreciation to trade at $9.22.