Friday, October 14, 2022: The Nigerian Investors and Exporters (I&E) FX Window opened the trading session on a bullish note with the naira appreciating to N440/$. Representing a 0.4 percent appreciation from the previous day’s closing rate (N441.83/$). As intra-day trading continued it fell slightly to N441.38/$ but remained more valuable than the previous day’s closing price. However, on a week-on-week basis, the naira depreciated by 0.5 percent from N439.17/$.
An exchange rate of N442.504/$1 remained the highest rate recorded during the intra-day trading before it settled at N430/$ at the end of the trading session, while it also traded as low as N441.50/$ during intra-day trading. According to data from FMDQ, a total of $69.18 million was traded at the Investors and Exporters (I&E) Window for the reporting period. Represent an increase of 6.7 percent from the $64.80 million traded the previous day. This explains the slight appreciation in the value of the naira in the official market.
Parallel Market
October 14, 2022: In the parallel (black) market, the naira has maintained a weakening trajectory. However, It closed at N737/$ for the reporting period. This represents a depreciation of 0.3 percent in the value of the naira at the unofficial market. Trading activities at the B2B market show that the exchange rate closed at about N740/$ for the same period being reported. This is based on the information obtained from BDC operators in Lagos.
Trading Activities at the Official Window
The exchange rate at the official market closed at N441.33/$1 on Friday, 14th October 2022. The opening rate was N440/$1 while the closing rate on Wednesday, 12th October 2022 was N441.83/$1.
Additionally, there was a $4.38 million increase in forex liquidity in the official Investors and Exporters window on Wednesday, which represents a 6.76 percent decrease from the $64.80 million that exchanged hands during the last trading session.
Foreign Reserves
According to data from the CBN, as of October 12, 2022, the gross external reserve of Nigeria decreased to $37.95 billion. Declined by $125 million (0.33 percent) from the 38.1 billion recorded as of October 7. Nigeria’s gross external reserve has been declining since the beginning of October and has been hovering around N38 billion dollars for several months.
