On Friday, the 22nd April 2022, The Nigerian naira closed at N418.33/$1 to the dollar at the official Investors and Exporters (I&E) window.
This represents a 0.28% appreciation of the naira currency as compared to the N419.50/$1 it traded for last during the previous trading session.
The FX turnover increased by 35.41% to $169.06 million on Friday when compared with the $124.85 million traded in the previous trading session.
In the parallel market, the exchange rate closed at a flat rate of N590/$1, a depreciation of about N1 from the N589/$1 it traded for on Thursday, 14th April 2022. This information was gathered from the Bureau De Change operators (BDCs) popularly referred to as the “abokis” in Lagos on Friday as they mentioned that the naira exchanges for N590/$1 while they buy at N585/$1, Leaving a gain of N5.
At the P2P market, the dollar exchange rate to the naira closed at N594 on Friday, as it recorded its highest rate, representing a 0.5% depreciation as compared to the N591/$1 recorded on Thursday, 21st April 2022.
According to a market analyst, the demand for dollars outweighs the supply of dollar at the P2Pmarket, Thus, steering the increase in the exchange rate of the dollar to the naira in that market in Nigeria. The analyst went ahead to include that other factors ranging from the low foreign proceeds due to the import dependent nature of the economy. The political stance of the nation where politicians are stockpiling the dollars against next year’s election and the CBN restriction on BDC operators, making of the banks the sole suppliers if dollars, could stimulate the depreciation of the exchange rate at the P2P market.
Meanwhile, Nigeria’s foreign reserve has recorded another daily gain to stand at $39.81 billion on Thursday, 21st April 2022 as compared to the $39.79 billion recorded as of the previous day, recording a percentage change of about 0.05%. However, the Central Bank of Nigeria (CBN) has constantly intervened in the official forex market from the external reserve in order to maintain the stability of the local currency.
Trading at the official (I&E) Window
The naira exchange rate to the US dollar closed at N418.33/$1 at the official rate at the official Investors and Exporters (I&E) window representing an appreciation of the naira by 0.28% when compared to the N419.50/$1 recorded in the previous trading session.
An opening indicative rate reported at N 418.33/$1 on Friday.
An exchange rate of N444/$1 was the highest rate recorded during the intra-day trading before it settled at N417/$1. While it sold at the lowest for N410/$1 during the intra-day trade also.
A total of $169.06 million was traded in the FX at the official Investors and Exporters window on Friday, representing a significant increase of 35.41% from $124.85 million recorded on the 21st April 2022.