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Naira falls to N609/$1 at black market as forex liquidity remains poor

AT the Investors and Exporters (I&E) window, the naira and the US dollar exchange rate closed at N418/$1.

Yesterday, the Naira gained 0.24 percent versus the US dollar, closing at N418/$1 compared to N419/$1 at the close of business on Tuesday, May 24th, 2022. In addition, the market handled $108.33 million in FX yesterday, up 24.43 percent from the previous session’s $87.06 million.

On Thursday morning, the peer-to-peer market’s exchange rate fell by 0.07 percent to $608.55, down from N608.12/$1 the day before.

Since the CBN announced the interest rate hike, the naira has depreciated by 0.39 percent in the market.

In the meantime, the parallel market’s exchange rate finished at N609/$1 on yesterday, down 0.66 percent from the previous trading session’s N605/$1. Last week, the exchange rate dropped dramatically as FX liquidity tightened in the market. According to information collected from BDCs in Nigeria, this is the case.

Nigeria’s external reserves fell by 0.07 percent on Tuesday, to $38.63 billion, down from $38.65 billion the day before. The reduction in external reserves can be linked to the Central Bank’s ongoing intervention in the foreign exchange market to maintain the stability of the local currency.

Yesterday, the Naira rose 0.24 percent against the US dollar to settle at N489/$1, its highest level in almost three weeks.

The opening indicative rate also closed at N417.79/$1, an increase of 21 kobo over the previous trading session’s rate of N418/$1.

Furthermore, during intra-day trading, the highest rate recorded was N444/$1 before settling at N418/$1, and it sold for as low as N413/$1 before settling at N418/$1.

Yesterday also, a total of $108.33 million in foreign exchange value was transacted, up 15.69 percent from $87.06 million on Tuesday.

The crypto market had a 0.07 percent loss in market value, bringing it to $1.252 trillion as of 23:09 a.m. (WAT). Although bitcoin increased by 0.5 percent to $29,788.55, Ethereum dropped by 0.72 percent to $1,963.

Uniswap and Terra bother rose 0.36 percent and 5.62 percent, respectively, to trade at $5.62 and $0.000186, while Solana lost 2.06 percent to trade at $48.605 all in yesterday’s market.

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