Tuesday, October 11, 2022: The Nigerian Investors and Exporters (I&E) FX Window opened the trading session on a bearish note with the naira sliding to N439.30/$, representing a 0.03 percent depreciation from the previous closing price of N437.17/$. As the intra-day trading progressed, the naira dropped further to close at N441.17/$1. This constitutes a 0.5 percent depreciation day-on-day. Meanwhile, the naira has been declining steadily since the beginning of this month with occasional slight appreciation.
An exchange rate of N443.50/$1 remained the highest rate recorded during the intra-day trading before it settled at N441.17/$ at the end of the trading session, while it also traded as low as N414/$ during intra-day trading. According to data from FMDQ, a total of $73.66 million was traded at the Investors and Exporters (I&E) Window for the reporting period. Representing a 26 percent decrease in forex supply from the $99.70 million traded the previous day.
The parallel (black) market – Wednesday, October 12, 2022
The exchange rate between the naira and dollar at the black market stands at about N730/$1, declining by 0.14 percent compared with the previous day’s closing price. Trading activities at the B2B market show that the exchange rate between the currency pairs is about N738/$ for the same period being reported. This is based on the information obtained from forex marketers in Lagos.
Trading Activities at the Official I&E Window
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The exchange rate at the official market closed at N441.17/$1 on Tuesday, 11th October 2022, from N439.17/$1 recorded in the previous session.
The opening indicative rate was N439.30/$1 while the closing rate on Friday, 7th October 2022 was N437/$1.
Additionally, there was a $26 million contraction in forex liquidity in the official Investors and Exporters window on Tuesday, which represents a 26% decline from the $99.7 million that exchanged hands during the last trading session.
Unlike in the previous trading session on Friday, the highest rate recorded during intra-day trading did not N4hit the N450/$ threshold, but it went as low as N414/$ before settling for the closing price of N441.17/$1
Foreign Reserves
Nigeria’s gross external reserve which has been declining since July 2022 with occasional increases has maintained a value of $38.10 billion, according to data from the Central Bank of Nigeria (CBN), as of October 6, 2022. The foreign reserve base declined by $10.2 million (0.03 percent) from the 38.11 billion recorded as of October 5.
