The exchange naira to the US dollar closed at N421.5/$1 at the official Investors and Exporters (I&E) window on Monday 16th 2022, depreciating by 0.6% from N419/$1 recorded the previous day
This shows that the Nigerian Naira started the week on a negative note, falling to its lowest level in four months. The exchange rate lost footing against the US dollar at the I&E window on Monday, losing 60 basis points to close at N421.5 to a dollar
FX liquidity in the market tightened as only $70.68 million in FX value exchanged hands at the official window of the market, representing a 58.27% decrease compared to the $169.38 million traded in the previous trading session.
In the same manner, naira exchange rate against the US dollar depreciated by 0.334% on Tuesday morning at the peer-to-peer market, exchanging at minimum of N600/$1 compared to N598/$1 traded as of the same time the on Monday trading session.
Meanwhile, the exchange rate at the parallel market appreciated marginally by 0.17% as it traded for N590 instead of N591/$1 recorded as of the previous trading session. This is according to information obtained from BDCs operating in Nigeria.
Trading at the official NAFEX window
Naira depreciated by 0.6% against the US dollar on Monday, to close the day at a record high of N421/$1.
The opening indicative rate closed at N417.3/$1 on Monday 16th May 2022, 40 kobo appreciation compared to N417.7/$1 recorded on Friday, 13th May 2022.
Furthermore, an exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N421.5/$1, while it sold for as low as N410/$1 during intra-day trading,
A total of $70.68 million was traded in FX at the official Investors and Exporters window on Monday.
Data from the FMDQ show that forex turnover fell by 58.27% from $169.38 million recorded last week Friday, 13th May 2022 to $70.68 million on Monday.
Crypto market update
Investors at the crypto market suffered much loss as the crypto market traded on a negative note on Monday, with the market capitalization losing 4.1% as of 23:16 (WAT) to stand at $1.28 trillion, following a 3.64% slide in the price of bitcoin to trade at $30,157.3.
In same vein, Ethereum, the second most valued and traded crypto asset suffered 4.53% loss to trade at $2,045.67.
However, the bulls returned to the market on Tuesday morning, with the capitalization gaining 2.71% in the early trading hours of Tuesday as bitcoin gained 2.11% to offset some of the previous day’s losses.