Exchange Rates Drop Throughout FX Markets Causing Forex Turnover to Depreciate

Tuesday, March 29th, 2022: At the official Investors and Exporters (I&E) window, the naira and the US dollar exchange rate closed at N417/$1.

On Tuesday, March 29th, 2022, the I&E window exchange rate ended at N417 to a dollar, a 0.12 percent depreciation from the previous trading session's rate of N416.5/$1. On Tuesday, foreign exchange turnover decreased by 51.5 percent to $97.9 million.

In addition, the Naira depreciated by 0.172 percent versus the US dollar on Wednesday, trading at a low of N584/$1 compared to N583/$1 on Tuesday.

On the other side, the parallel market exchange rate remained unchanged at N588/$1, unchanged from the previous trading session. According to information collected from BDCs(Bureau De Change) in Nigeria, this is the case.

Meanwhile, Nigeria's foreign reserve increased for the third consecutive day, rising to $39.55 billion from $39.53 billion the day before. Meanwhile, the Central Bank has continued to interfere in the official forex market with funds from the external reserve to keep the local currency stable.

Trading at the NAFEX official window

The Investors and Exporters window exchange rate closed at N417/$1 on Tuesday, March 29th, 2022, reflecting a 0.12 percent devaluation from N416.5/$1 on Monday, March 28th, 2022.

On Tuesday, the opening indicative rate closed at N416.25/$1, marking a 1 kobo increase over the N416.25/$1 recorded on Monday, March 28th, 2022.

The highest intra-day rate was N444/$1 before it closed at N417/$1, while it sold for as low as N410/$1 during intra-day trading. A total of $97.91 million in foreign exchange was transacted in the official Investors and Exporters window on Tuesday.

According to data from the FMDQ, FX turnover decreased by 51.5 percent from $202.06 million on Monday to $97.91 million on Tuesday, March 29th, 2022.

Cryptocurrency market overview

The crypto market continued to surge in early trade on Wednesday, with the total market capitalization of the industry rising 0.12 percent to $2.11 trillion, owing mostly to the bullish movements of bitcoin and Ethereum.

On Tuesday, the price of bitcoin, the most valuable crypto-asset, increased by 0.07 percent to $47,491.41, while Ethereum, the second most valuable crypto-asset, increased by 0.1 percent to $3,405.

In a similar vein, Solana gained 0.28 percent to $112.01. Terra, on the other hand, fell 2.04% to $106.896, while Uniwap fell 0.09 percent to $11.24.