Naira rebounds at I&E window as FX turnover improves significantly to $291 million

Monday, 25th April 2022: The exchange rate between the naira and the US dollar closed at N417.3/$1 at the Investors and Exporters (I&E) window, where FX is traded officially.

Naira made a recovery on Monday, starting the week with a 0.25% appreciation to close at N417.3/$1 compared to N418.33/$1 recorded in the previous day. This follows a significant improvement in the amount of traded FX in the market.

Forex turnover surged by 72.18% on Monday to $291.1 million compared to $169.1 million recorded on Friday last week. This also represents the highest daily turnover recorded at I&E window year-to-date.

On the other hand, the exchange rate at the peer-to-peer market depreciated marginally by 0.102% on Tuesday morning to trade at a minimum of N590.1/$1, in contrast to the N589.5/$1 recorded as of the same time of the previous day.

Meanwhile, the exchange rate at the parallel market closed at N587/$1, on Monday, depreciating by 0.17% compared to N586/$1 traded in the previous day. This is according to information obtained from BDCs operating in Nigeria.

Nigeria’s foreign reserve in the same vein, returned to declining ways as the reserve recorded its first depreciation since 1st of April 2022. The external reserve level dipped by 0.01% on Friday, 22nd April 2022 to stand at $39.8 billion compared to $39.81 billion recorded as of the previous day.

It is worth noting that the decline in the external reserve level can be attributed to the continuous intervention by the Central Bank in the FX market in order to ensure stability of the local currency.

Trading at the official NAFEX window

The exchange rate at the Investors and Exporters window closed at N417.3/$1 on Monday, 25th April 2022, representing a 0.25% appreciation against the US dollar compared to N418.33/$1 recorded in the previous trading session.

• The opening indicative rate closed at N416.92/$1 on Monday, 25th April 2022, which is 48 kobo lower than the N417.4/$ recorded in the previous trading session.
• An exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N417.31, while it sold for as low as N410/$1 during intra-day trading,
• A total of $291.1 million was traded in FX at the official Investors and Exporters window on Monday.
• According to the data from the FMDQ, forex turnover surged by 72.18% from $169.1 million recorded on Friday to $291.1 million on Monday, 25th April 2022.

Crypto market update

The cryptocurrency market resumed trading activities on Tuesday on a slightly bearish note with market capitalization losing 0.07% to stand at $1.832 trillion. However, flagship crypto-asset bitcoin gained 0.21% to trade at $40.524.8 in the early hours of Tuesday morning.

Meanwhile, Ethereum recorded a 0.48% price decline to trade at $2,992.42, Solana dipped 0.52% to trade at $100.48. Also, Terra and Uniswap both recorded 1.21% and 0.92% declines to trade at $95.758 and $8.67 respectively.

Although, bitcoin had dropped below the $40k threshold over the weekend after the federal reserve bank of the United States made hawkish comments, in consideration of raising the benchmark interest rate by 50 basis points.

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