Naira has fallen massively as FX demand surges, Brand Spur Nigeria reports.
The dollar to the naira exchange rate at the parallel market better known as the black market depreciated on Monday to close at N580/$1, representing a 1.22% decline compared to $573/$1 recorded in the previous trading session, the same rate it opened the market with on Tuesday.
This is according to information obtained from BDC operators interviewed by Newsonline Nigeria.
In the same direction, the dollar to naira exchange rate between the Nigerian currency naira and the US dollar closed at N416.67/$1 at the official Investors and Exporters (I&E) window on Monday, February 28, 2022.
This online news platform understands that the dollar to naira exchange rate at the I&E window depreciated marginally on Monday to close at N416.67/$1, which represents a 0.16% fall compared to N416/$1 recorded in the previous trading session.
IMPORTANT NOTE: Please note that the exchange rate changes hourly.… it depends on the volume of dollars available and the Demands. What it means is that…you can buy or sell 1 dollar at ₦580 and the price can change (high or low) within hours.
Meanwhile, FX turnover at the official market dropped by 40.23% to $80.32 million on Monday from $134.39 million recorded on Friday of the previous week. Recall that a total of $571.1 million was traded in the market in the previous week.
The dollar to naira exchange rate at the Peer-to-Peer (P2P) forex market, on the other hand, appreciated by 1.276% to trade at N572.6/$1 in the early hours of Tuesday, 1st March 2022 compared to N580/$1 recorded on Monday morning.
Trading at the official NAFEX window
The dollar to naira exchange rate at the Investors and Exporters window closed at N416.67/$1 on Monday, 28th February 2022, which represents a 0.16% depreciation compared to N416/$1 recorded in the previous month.
The opening indicative rate closed at N415.67/$1 on Monday, representing a 32 kobo depreciation compared to the N415.35/$1 recorded on Friday, 25th February 2022.
An exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N416.67/$1, while it sold for as low as N410/$1 during intra-day trading,
Meanwhile, Brand Spur Nigeria reports that forex turnover at the official window dropped by 40.23% to $80.32 million on Monday, 28th February 2022.
According to data tracked by Nairametrics from FMDQ, forex turnover at the I&E window decreased from $134.39 million recorded on Friday, 25th February 2022 to $80.32 million on Monday.
The crypto market started on a positive note with a 0.39% appreciation in the industry market capitalization to stand at $1.882 trillion in the early hours of Tuesday morning. In the same vein, flagship crypto asset gained 0.79% as of the same time to trade at $43,532.76 having witnessed a significant downturn in the two previous trading sessions.
Also, Ethereum gained 0.14% to trade $2,927, while Solana dipped 2.62% to trade at $97.1125, Terra recorded a 2.6% decline in price to trade at $89.0349, while Uniswap dipped 1.23% to trade at $10.4 on Tuesday morning.
Even though the dollar to naira opened in the parallel market at ₦580 per $1 today, Newsonline reports that the Central Bank of Nigeria (CBN) does not recognise the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.
Disclaimer: Brand Spur Nigeria does not set or determine forex rates. The official NAFEX rates are obtained from the website of the FMDQOTC. Parallel market rates (black market rates) are obtained from various sources including online media outlets. The rates you buy or sell forex may be different from what is captured in this article.