Exchange rate falls across FX markets

Exchange rate falls across FX markets

The exchange rate between the US dollar and the Naira on Friday closed $1/N416.67 at the official Investors and Exporters (I&E) window.

This drop in the exchange rate represents a 0.04% depreciation compared to $1/N416.5 it closed at the previous trading session. Also, there was a decline in the Forex turnover at the official market by 17.89% to $115.26 million.

At the parallel market, the exchange rate dropped by 0.35% to close at $1/N580 from N578 to a dollar it exchanged for on Thursday, 3rd March 2022. This is according to prices obtained from BDC operators by Cbnrate.

The Peer-to-Peer (P2P) forex market exchange rate also depreciated by 0.77% to exchange at a minimum of $1/N578.4 on Friday morning, 4th March 2022 compared to N574/$1 it traded on Thursday morning. However, the exchange rate at the P2P market eventually gained to close trading at N576 on Friday.

The depreciation of the naira against the US dollar is attributed to Increased demand for FX in the non-official markets has been attributed as the reason for the depreciation of the naira versus the US dollar.

Major highlights of Friday’s Forex Trading

  • The opening indicative rate closed at N415.7/$1 on Friday, representing a 27 kobo appreciation compared to the N415.97/$1 recorded on Thursday, 3rd March 2022.
  • An exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N416.67/$1, while it sold for as low as N410/$1 during intra-day trading,
  • Meanwhile, forex turnover at the official window decreased slightly by 17.89% to $115.26 million on Friday, 4th March 2022.
  • According to data from FMDQ, forex turnover at the I&E window decreased from $140.38 million recorded on Thursday, 3rd March 2022 to $115.26 million on Friday.
  • A sum of $548.71 million was traded at the official window in the week, compared to the $571.08=9 million that exchanged hands in the previous week.

Author: Greg