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Naira Crashes To N435/$1 At Official Forex Market Despite 90% Surge In Turnover

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The exchange rate between the naira and the US dollar at the official Investors and Exporters (I&E) window closed at N435/$1, the highest rate on record.

Naira crashed against the US dollar on Thursday to close at N435/$1, representing a 4.82% depreciation compared to N415/$1 recorded in the previous trading session.

The 4.82% fall is the highest movement in either direction in over a year. The last time there was such a movement at the official market was 31st December 2021, when the rate depreciated 4.12% to close at N410.25.

On the other hand, forex turnover at the official market increased by 90.2% on Thursday to $227.29 million.

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Meanwhile, at the parallel market, naira gained 158 basis points to close at N560/$1 on Thursday, which represents a 1.58% appreciation compared to N569/$1 recorded on Wednesday. This is according to information obtained from BDC operators interviewed by Nairametrics.

Similarly, exchange rate at the P2P market appreciated marginally on Thursday to close at N569.5/$1 despite opening the day at N570.2/$1. Naira has witnessed continent decline in the past week, dropping from N560.95/$1 recorded before the Christmas break to trade for as high as N571.4/$1 at the P2P market.

Similarly, Nigeria’s foreign reserve reduced by 0.11% on Wednesday, 29th December to close at $40.53 billion compared to $40.58 billion recorded as of the previous day. The continuous decline in the nation’s external reserve is attributed to the intervention by the apex bank in the official forex market.

Trading at the official NAFEX window
The exchange rate at the Investors and Exporters window closed at N435/$1 on Thursday, 30th December 2021, which represents a 4.82% depreciation compared to N415/$1 recorded in the previous trading session

The opening indicative rate closed at N413.79/$1 on Thursday, which represents a 24 kobo appreciation compared to N414.03/$1 recorded in the previous trading session.

An exchange rate of N445.5/$1 was the highest rate recorded during intra-day trading before it settled at N435/$1, while it sold for as low as N408/$1 during intra-day trading.

Forex turnover at the official window surged by 90.2% to $227.29 million on Thursday, 30th December 2021.

According to data tracked by Nairametrics from FMDQ, forex turnover at the I&E window increased from $119.48 million recorded on Thursday 29th December 2021 to $227.29 million on Thursday 30th December 2021.

Hammed Tajudeen is the editor in-chief of Blaze News, holds Higher National Diploma(HND) in Mass Communication, graduated from Osun State Polytechnic, Iree.

TMC

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