On Monday, the 16th May 2022, The Nigerian naira closed at N421.50/$1 to the dollar at the official Investors and Exporters (I&E) window.
This represents a 0.60% depreciation of the naira currency as compared to the N419.00/$1 it traded for last during the previous trading session.
The rationing of foreign exchange (FX) to traders in Nigeria by the Central Bank of Nigeria (CBN) amidst a shortage in supply is continually putting pressure on the local currency.
The FX trade valued at $70.68 million recorded yesterday showed a decline of about 58.3 percent when compared with the $169.38 million it was valued at in the previous trading session.
In the parallel market, the exchange rate closed at a flat rate of N599/$1, a massive rise the exchange rate against last week’s trading rate of N595/$1. This information was gathered from the Bureau De Change operators (BDCs) popularly referred to as the “abokis” in Lagos on Monday as they mentioned that the naira exchanges for N599/$1 while they buy at N596/$1, Leaving a gain of N4.
At the B2B market, the dollar exchange rate to the naira closed at N603 on Monday, as it recorded its highest rate, representing a 0.17% depreciation as compared to the N600/$1 it recorded on Friday.
Meanwhile, Nigeria’s foreign reserve has recorded a massive decline to stand at $39.04 billion on Thursday, 12th May 2022, as compared to the $39.07 billion recorded as of the previous trading session, representing a percentage change of about 0.5%. 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.
Also, at the interbank window, the Nigerian Naira depreciated against the Pound Sterling on Monday by N2.17 to trade at N509.50/£1 compared to the preceding session’s traded rate of N507.33/£1.
Also, the Naira suffered loss of N1.18 against the Euro to close the day at N433.05/€1, as compared with N431.87/€1 of the previous trading day.
Trading at the official (I&E) Window
The naira exchange rate to the US dollar closed at N421.50/$1 at the official rate at the official Investors and Exporters (I&E) window representing an appreciation of the naira by 0.60% when compared to the N419/$1 recorded in the previous trading session.
An opening indicative rate was reported at N 417.30/$1 on Monday.
An exchange rate of N444/$1 was the highest rate recorded during the intra-day trading before it settled at N421.50/$1. While it sold at the lowest for N410.03/$1 during the intra-day trade also.
A total of $70.68 million was traded in the FX at the official Investors and Exporters window on Monday, representing a significant decline of 58.3% from $169.38 million recorded on the 13th May 2022.