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Business News of Saturday, 21 May 2022

Source: nairametrics.com

Naira closes week at N605/$1 at the black market

Naira notes file photo Naira notes file photo

The exchange rate between the naira and the US dollar closed at N419.02/$1 at the official Investors and Exporters (I&E) window.

Compared to the previous trading session, naira appreciated by 0.31% in contrast to N420.33/$1 recorded as of the close of trade of trading activities on Thursday. On the flip side, the naira recorded marginal growth compared to the N419/$1 recorded at the close of the previous week.

The volume of FX that was traded at the official market was reduced compared to the previous week. Notably, a total of $452.69 million was traded between Monday and Thursday of the week, as against the $536.47 million traded in the previous week (Monday to Thursday)

Similarly, the exchange rate against the US dollar lost ground during the week, having traded at a minimum of N604/$1 on Friday this week compared to N598.5/$1 recorded as of the previous week.

Also, the exchange rate at the parallel market depreciated significantly during the week, falling by 2.37% to close at N605/$1 compared to N591/$1 recorded in the previous week. This is according to information obtained from BDCs operating in Nigeria.

Nigeria’s external reserve lost $246.25 million during the week, representing a 0.63% decline from $39.04 billion to stand at $38.79 billion as of Thursday, 19th May 2022. Meanwhile, 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 the stability of the local currency.

Trading at the official NAFEX window

Naira gained marginally against the US dollar on Friday by 0.31% to close at N419.02/$2 compared to N420.33/$1 recorded on Thursday, 19th May 2022.

The opening indicative rate closed at N418.35/$1 on Friday, 20th May 2022, 65 kobo depreciation compared to N417.7/$1 recorded on Thursday, 19th May 2022.
Furthermore, an exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N419.02/$1, while it sold for as low as N410/$1 during intra-day trading.

Crypto market update

Trading activities resumed at the crypto market on Saturday on a positive note as market capitalization gained 0.46% to stand at $1.241 trillion as of press time, as bitcoin also gained 0.5% to trade at $29.3k.

In the same vein, Ethereum gained 0.71% to trade at $1,970.89, Solana gained 1.05%, trading at $49.9175, while Uniswap was trading at $5.17. On the flip side, LUNAUSD dipped 3.92% to trade at $0.00011.