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Business News of Tuesday, 26 July 2022

Source: www.nairametrics.com

Official exchange rate appreciates as forex supply surges by 146%

Forex supply surges by 146% Forex supply surges by 146%

The exchange rate between the naira and the US dollar closed at N427.17/$1 at the Investors and Exporters (I&E) window, where forex is traded officially.

Naira started the week with a 0.66% appreciation against the US dollar at the official market to close at N427.17/$1 compared to N430/$1 recorded in the previous trading session. The upward movement in the local currency is following the 146.2% increase in the amount of forex traded on the floor of the exchange.

Also, with the further scarcity of forex in the market, the exchange rate at the peer-to-peer market depreciated significantly to a record low of N667/$1 in the early hours of Tuesday, representing a 1.72% decline compared to N655.73/$1 recorded on Monday morning.

This is the highest rate recorded in the unofficial market, according to data tracked by Nairalytics.

Meanwhile, Nigeria’s external reserves recorded its fourth consecutive decline on Friday, dropping by 0.05% to stand at $39.39 billion from $39.41 billion recorded as of Thursday, 21st July 2022. The decline in the country’s external reserve could be attributed to the increased flow of FX in the official market in the past two days.

The CBN had explained during the last MPC session that Nigeria’s external reserve grew in the month of June 2022 as a result of increased non-oil export and improvement in diaspora remittances through its RT200 and Naira4dollar programmes respectively.

Trading at the official NAFEX window

The exchange rate at the official market appreciated on Monday, 25th July 2022 by 0.66% to close at N427.17 to a dollar as against the N430/$1 recorded on Friday, 22nd July 2022.

The opening indicative rate closed at N427.63/$1 on Monday, 25th from N427/$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 N427.17/$1, while it traded as low as N414/$1 during intra-day trading.

A total of $89.79 million in FX value exchanged hands on Monday, which is 146.2% higher than the $36.47 million that was traded in the previous trading session.
Exchange rate skyrockets to N644/$1 at peer-to-peer market as forex scarcity lingers