Friday, October 14, 2022: The exchange rate between the naira and dollar at the parallel (black) market has stabilized at about N735/$1. This is coming after a 0.7 percent decline the previous day. Trading activities at the B2B market show that the exchange rate between the currency pairs is about N740/$ for the same period being reported. This is based on the information obtained from forex marketers in Lagos.
Investors and Exporters (I&E) Window
Thursday, October 13, 2022: After appreciating slightly the previous day, the naira slips to a new all-time low of N441.83/$1 at the Nigerian Investors and Exporters (I&E) FX Window. Although trading activities began on a bullish note with the naira exchanging at 439.70/$1, as intra-day trading progressed, it lost 0.5 percent of its value to the dollar. Meanwhile, the naira crossed the N440/$ benchmark on October 11, 2022, and has been plunging since the beginning of this month. On a week-on-week basis, it has depreciated by 1.2 percent.
An exchange rate of N442/$1 was the highest rate recorded during the intra-day trading before it settled at N441.83/$ at the end of the trading session, while it also traded as low as N435/$ during intra-day trading. According to data from FMDQ, a total of $64.80 million was traded at the Investors and Exporters (I&E) Window for the reporting period. Representing a 32 percent decrease in forex supply from the $95.39 million traded the previous day.
Notably, the decrease in forex supply in the market for the reporting period led to a fall in the value of the naira in the official market.
Trading Activities at the Official Window
The exchange rate at the official market closed at N441.83/$1 on Thursday, 13th October 2022. The opening indicative rate was N439.70/$1 while the closing rate on Wednesday, 12th October 2022 was N440.67/$1.
Additionally, there was a $30.59 million decrease in forex liquidity in the official Investors and Exporters window on Wednesday, which represents a 32% decrease from the $95.39 million that exchanged hands during the last trading session.
Foreign Reserves
According to data from the CBN, as of October 6, 2022, the gross external reserve of Nigeria which has been declining since the beginning of the month further decreased to $38.95 billion. Declined by $124 million (0.3 percent) from the 38.1 billion recorded as of October 5.
