Naira Remains Steady in FX Markets as CBN Continues Forex Intervention


Friday, June 3, 2022: The exchange rate between the naira and the US dollar closed at N419.75/$1 at the Investors and Exporters (I&E) counter.

The naira depreciated further on Friday to close the week at 419.75 naira/$1 against 419.5 naira/$1 recorded in the previous trading session, representing a depreciation of 0.06%. On the other hand, the turnover of currencies in the market fell significantly from the record high recorded in the previous trading session, with the supply of currencies falling by 75.65% from 760.2 million to $185.1 million.

Notably, a total of $1.34 billion was traded in the Investors and Exporters window during the week, which is significantly higher than the $535.94 million traded the previous week.

Meanwhile, the exchange rate remained stable in the parallel market, depreciating slightly by 0.17% to close at N606/$1 on Friday, June 3, 2022. This is according to information from BDC traders at Nigeria.

The exchange rate in the peer-to-peer market resumed the week on a positive note as the naira appreciated to its highest level since May 18, 2022. The exchange rate in the market appreciated down 0.146% to trade at N603.6/$1 in the early hours of Monday, compared to N604.48/$1 recorded on Friday the previous week.

Meanwhile, Nigeria’s external reserves declined by 0.01% on Thursday, June 2, 2022 to stand at $38.47 billion from $34.48 billion recorded the previous day. The outside of the country had been declining since April 25, 2022, largely due to the Central Bank’s continued intervention in the foreign exchange market to ensure the stability of the local currency.

Negotiate at the official NAFEX counter

The exchange rate depreciated by 0.06% on Friday to close at N419.75/$1 from the N419.5/$1 recorded on Thursday.

  • The indicative opening rate closed at N419.7/$1 on Friday, June 3, 2022, representing a decline of N0.87 from the N418.83/$1 recorded in the previous trading session .
  • Furthermore, an exchange rate of N444/$1 was the highest rate recorded in intraday trading before settling at N419.75/$1, when it sold off at such a low price. low as N413/$1 during intraday trades.
  • A total of $185.1 million in exchange value was traded in the official I&E window on Friday, representing a 75.65% decline from the $760.2 million traded in the previous trading session. .

Crypto Market Update

Cryptocurrencies started the new week on the upside, with a rally in bitcoin, Ethereum, Solana, among others, pushing the industry’s market capitalization 3.59% to $1.257 trillion.

Flagship crypto asset bitcoin gained 4.24% on Monday morning at press time to trade at $31,155, while Ethereum saw a 3.72% gain to trade at 1,871.92 $. Similarly, Solana registered an 8.29% price increase on Monday morning to trade at $41.6725.

Uniswap in the same vein rebounded 3.44% to trade at $5.267, while Luna/US dollar recorded a decline of 0.1% to trade at $0.0000858.

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