Naira Hits N431/$ at I&E Window, N616 at Parallel Market


Alt: = "Naira and dollar notes"

Naira plummets the more across forex markets despite 32% increase in dollar supply by the Central Bank of Nigeria

Naira to dollar exchange on Wednesday, 6th July 2022: 

The exchange rate between the Nigerian naira and the US dollar closed at N427.75/$1 at the Investors and Exporters (I&E) window on Wednesday trade, reaching a peak of N431/$1 within the day.

Naira appreciated by 0.52% against the US dollar on Wednesday to close at N427.75/$1 after reaching an all-time high on Tuesday, 5th July 2022 at N430/$1. In the same vein, total of $81.64 million were traded in the official market on Wednesday, according to information seen on he FMDQ website.

On the other hand, the exchange rate at the parallel market depreciated further on Wednesday, reaching N616/$1 after closing at N613/$1 the previous day, Tuesday, 5th July 2022. Bureau De Change operators who spoke to Business Compiler at Ikorodu, Lagos,  attributed the downfall to forex scarcity and increased demand occasioned by Sallah festive. 

Similarly, the exchange rate at the peer-to-peer market followed suit in depreciation. The exchange rate closed at N617/$ on Wednesday but opened Thursday morning at minimum of N618/$  losing 0.16%.

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External Reserve

Nigeria’s external reserves increased to $39.27 billion on Tuesday, 5th July 2022  from $39.25 billion recorded the previous day, representing 0.04% increase. This makes it the 20th consecutive day of improvement of Nigeria's foreign reserve.

The external reserve had been on a downward trend due to the continuous intervention by the Central Bank in the FX market in order to ensure the stability of the local currency. However, hike in crude oil prices have increased Nigeria's foreign receipts, thereby improving nation's foreign reserve.

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