Naira Closes Week Weaker As Black Market Rate Hits N615/$

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The exchange rate between the naira and the US dollar closed the week weaker at the official Investor and Exporter window, closing at N425/$1 on Friday, 1st July 2022 compared to N420.13/$1 recorded in the previous week.

This is according to Nairalytics exchange tracker culled from the website of FMDQ. Naira depreciated by 1.2% week-on-week against the US dollar. Meanwhile, the total amount of FX traded in the market increased marginally by 6.27% to $627.94 million in the review week compared to $590.91 million that exchanged hands in the previous week.

On the other hand, naira closed the week at N612/$1 at the parallel market from N610/$ recorded at the close of the previous week, hitting a record N615/$1 during the week. Also, the exchange rate closed at N615/$1 at the peer-to-peer market from N612.59/$ recorded last week.

Trading at the official NAFEX window

The exchange rate at the official market fell further in the review week, depreciating by 1.2% to close at N425 to a dollar as against the N420.13/$1 recorded on Friday, 24th June 2022.

Naira Closes Week Weaker As Black Market Rate Hits N615/$

The opening indicative rate closed at N421.6/$1 on Friday, 1st July 2022, from N419.79/$1 recorded the previous Friday.

Furthermore, an exchange rate of N444/$1 was the highest rate recorded during the week trading before it settled at N425/$1, while it traded as low as N410/$1 during intra-day trading.

A total of $627.94 million in FX value was traded in the official I&E window during the week, which is 6.27% higher than the $590.91 million that exchanged hands in the previous week.

Nigeria’s currency has been faced with immense pressure from decline in export earnings and surging FX demand in the country, leading to tightened forex liquidity. A cursory check shows that the exchange rate has depreciated to its highest level year-to-date at the official market despite constant CBN interventions.

On the flip side, the local currency has declined by 8.3% year-to-date at the black market, starting the year at N565/$1, now trading at N612/$.