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Business News of Wednesday, 17 August 2022

Source: www.nairametrics.com

Nigeria’s foreign reserve continues improvement as Naira dips further at I&E window

Naira and Dollar Naira and Dollar

The exchange rate between the naira and the US dollar closed at N430.67/$1 at the Investors and Exporters (I&E) window, where forex is traded officially.

Naira depreciated by 0.16% to close trading at N430.67 at the official market.

This follows a 62.5% decline in the amount of traded FX in the market. Notably, forex turnover fell from $134.3 million traded on Monday to $50.4 million on Tuesday, 16th August 2022.

Similarly, Naira depreciated on Wednesday morning, trading at a minimum of N680.4/$1 compared to N676.38/$1 recorded in the previous trading session.

Nigeria’s external reserves on Monday, 15th August 2022, continued its uptrend after gaining 0.03% to stand at $38.89 billion from $38.88 billion recorded as of the previous week.

The reserve level had been on a downturn in recent times, due to the constant intervention by the CBN in the official FX market in a bid to manage exchange rate volatility.

Trading at the official NAFEX window

The exchange rate at the official market depreciated on Tuesday, 16th August 2022 by 0.16% to close at N430.67 to a dollar compared to N430/$1 recorded on Monday, 15th August 2022.

The opening indicative rate closed at N429.88/$1 on Tuesday, 16th August 2022, compared to N429.7/$1 recorded in the previous trading session.

Furthermore, an exchange rate of N432/$1 was the highest rate recorded during intra-day trading before it settled at N430.67/$1, while it traded as low as N417/$1 during intra-day trading.

A total of $50.4 million in FX value exchanged hands on Tuesday, which is 62.47% lower than the $134.3 million that was traded in the previous trading session.
Official exchange rate closes at N430/$1 as FX supply surges by 190% to $134.30 million.

Monday, 15th August 2022: The exchange rate between the naira and the US dollar closed at N430/$1 at the Investors and Exporters (I&E) window, where forex is traded officially.

Naira depreciated by 0.09% on Monday, 15th August 2022 to close trading at N430/$1 from N429.62/$1 recorded in the previous trading session. However, forex supply inclined significantly by 190% to $134.3 million from $46.31 million that exchanged hands on Friday, 12th August 2022.

On the other hand, Naira recorded a marginal appreciation on Tuesday morning, trading at a minimum of N676.38/$1 compared to N678.98/$1 recorded in the previous trading session.

Meanwhile, at the parallel market, the Naira fell to N678/$1 on Monday, closing with a 0.44% depreciation compared to N675/$1 recorded in the previous trading session as FX traders continued to lament scarcity of forex and sustained high demand. This is according to information obtained from black market FX traders.

Nigeria’s external reserves recorded a rare gain on Friday, 12th August 2022, after the reserve level improved slightly by 0.01% to stand at $38.884 billion, from $38.881 billion recorded as of the previous day. The reserve level which had been on a downturn in recent times, due to the constant intervention by the CBN in the official FX market in a bid to manage exchange rate volatility.

Trading at the official NAFEX window
The exchange rate at the official market depreciated on Monday, 15th August 2022 by 0.09% to close at N430 to a dollar as against the N429.62/$1 recorded on Friday, 12th August 2022.

The opening indicative rate closed at N429.70/$1 on Monday, 15th August 2022, compared to N429.67/$1 recorded in the previous trading session.
Furthermore, an exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N430/$1, while it traded as low as N417/$1 during intra-day trading.

A total of $134.30 million in FX value exchanged hands on Monday, which is 190% higher than the $46.31 million that was traded in the previous trading session.
Black market rate depreciates to N675/$1 as foreign reserve falls sharply below $39 billion.

Tuesday, 9th August 2022: The exchange rate between the naira and the US dollar closed at N428.75/$1 at the Investors and Exporters (I&E) window, where forex is traded officially.

Naira appreciated by 0.52% on Tuesday, 9th August 2022 to close trading at N428.75/$1 from N431/$1 recorded in the previous trading session. On the flip side, forex supply declined marginally by 1.75% to $113.64 million from $115.67 million that was traded on Monday, 8th August 2022.

On the other hand, at the peer-to-peer market, Naira fell to N681.84/$1 on Wednesday morning from N670.4/$1 recorded as of the same time on Tuesday, representing a 1.71% decline compared to the previous day.

Similarly at the black market, Naira depreciated to N675/$1 on Tuesday, closing with a 1.5% decline compared to N665/$1 recorded in the previous trading session as FX traders lament scarcity of forex and sustained high demand. This is according to information obtained from black market FX traders.

Nigeria’s external reserves fell sharply below the $39 billion mark on Monday, 8th August 2022, dropping by 0.24% to stand at $38.95 billion from $39.05 billion recorded as of the previous day. This is largely due to the constant intervention by the CBN in the Investors and Exporters window, to manage exchange rate volatility.

Trading at the official NAFEX window

The exchange rate at the official market appreciated on Tuesday, 9th August 2022 by 0.52% to close at N428.75 to a dollar as against the N431/$1 recorded on Monday, 8th August 2022.

The opening indicative rate closed at N429.58/$1 on Tuesday, 9th August 2022, compared to N429/$1 recorded in the previous trading session.
Furthermore, an exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N428.75/$1, while it traded as low as N417/$1 during intra-day trading.
A total of $113.64 million in FX value exchanged hands on Tuesday, which is 1.75% lower than the $115.67 million that was traded in the previous trading session.
Naira falls to N431/$1 at I&E window despite $115.7 million forex turnover
Monday, 8th August 2022: The exchange rate between the naira and the US dollar closed at N431/$1 at the Investors and Exporters (I&E) window, where forex is traded officially.

Naira started the week on a bearish note, with a 0.67% depreciation to close at N431/$1 compared to N428.12/$1 recorded in the previous trading session. This is despite a 60.83% increase in the amount of forex traded in the market at $115.67 million.

In the same vein, at the peer-to-peer market, naira fell to N670.4/$1 on Tuesday morning from N662.4/$1 recorded as of the same time on Monday, representing a 1.21% decline compared to the previous day.

Nigeria’s external reserves rose for the second time in a row, after dropping consecutively for almost a month. The reserve level gained 0.03% to stand at $39.09 billion as of Thursday, 4th August 2022 from $39.07 billion recorded as of the previous day.

Trading at the official NAFEX window

The exchange rate at the official market depreciated on Monday, 8th August 2022 by 0.67% to close at N431 to a dollar as against the N428.12/$1 recorded on Friday, 5th August 2022.

The opening indicative rate closed at N429/$1 on Monday, 8th August 2022, the same as recorded in the previous trading session.

Furthermore, an exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N431/$1, while it traded as low as N415/$1 during intra-day trading.

A total of $115.67 million in FX value exchanged hands on Monday, which is 60.83% higher than the $71.92 million that was traded in the previous trading session.
Naira appreciates at I&E window as foreign reserves records first gain in two weeks.

Thursday, 4th August 2022: The exchange rate between the naira and the US dollar closed at N428.12/$1 at the Investors and Exporters (I&E) window, where forex is traded officially.

Naira closed higher on Thursday, with a 0.25% appreciation against the US dollar to close at N428.12/$1 compared to N429.2/$1 recorded in the previous trading session. A total of $110.22 million was traded on Thursday, representing a 100.955% decrease when compared to the $123.78 million traded on Wednesday.

On the other hand, at the peer-to-peer market, naira fell to N651/$1 on Friday morning from N616.66/$1 recorded as of the same time on Thursday, representing a 5.6% decline compared to the previous day.

Nigeria’s external reserves rose for the first time in over two weeks, gaining marginally by 0.01% to stand at $39.07 billion from $39.07 billion recorded in the previous day. The reserve level had depreciated for eleven consecutive days, largely due to the constant intervention by the apex bank in the I&E window.

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