The exchange rate between the naira and the US dollar at the parallel market depreciated on Wednesday, January 18, 2023, trading at an average of N745/$1. This is according to information provided by parallel market dealers to RateCaptain; the naira decreased in value by 0.42% in comparison to the N742/$1 recorded on Tuesday, January 17, 2023.
The decline in the black market was linked to an uptick in FX demand because of the upcoming Chinese New Year holiday, which takes place between January 21 and 27. All international trading in China will be suspended at this time until after the holiday. As a result, importers from Nigeria have already placed pre-orders for goods in advance of the holiday.
In the same vein, the exchange rate on the cryptocurrency P2P exchange declined by 0.27% on Wednesday, January 18, 2023, to trade at a minimum of N750/$1, as compared to N748/$1 as of Tuesday, January 17, 2023.
The exchange rate at the investors and exporters (I&E) window closed at N461.50/$1 on Wednesday, January 18, 2023, a 0.09% improvement from N461.90/$1 recorded in the previous trading session.
Forex turnover declined by 183% on Tuesday as a sum of $55.52 million exchanged hands in contrast to $198.52 million that was traded on Monday, January 16th, 2023.
Nigeria’s external reserves stood at $37.210 billion as of January 16, 2023, representing a marginal increase from the $37.205 billion recorded as of December 13, 2022, indicating a 0.013% increase in the nation’s reserve level.
Trading in the official NAFEX window
The exchange rate at the official market closed at N461.50/$1 on Tuesday, January 17, 2023, compared to N461.90/$1 recorded in the previous trading session. The opening indicative rate closed at N461.50/$1 on Tuesday, January 16, 2023. Furthermore, an exchange rate of N462/$1 was the highest rate recorded during intra-day trading before it settled at N461.50/1, while it traded for as low as N440/$1 during intra-day trading. A sum of $55.52 million in FX value exchanged hands at the I&E window on Tuesday, which is 183.01% lower than the $198.52 million that was traded in the previous session.
