Official Exchange Rate Appreciates As Forex Supply Surges By 301% To $389 Million

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The exchange rate between the naira and the US dollar closed at N424.17/$1 at the official Investors and Exporters (I&E) window.

Naira appreciated significantly against the US dollar at the official market on Tuesday, with a 1.16% gain to close at N424.17/$1, compared to N429.13/$ recorded as of the close of trading activities in the previous trading session.

The appreciation of the local currency is following the 301.3% increase in the amount of forex supplied in the official market. A total of $383.59 million in FX value was traded on Tuesday, 19th July 2022, an increase compared to $95.58 million that exchanged hands on Monday.

On the other hand, the exchange rate at the parallel market fell by 1.69% to close trading activities on Monday at N630/$1 compared to N619.5/$1 recorded in the previous trading session. This is according to information from Bureau De Change operators.

Official Exchange Rate Appreciates As Forex Supply Surges By 301% To $389 Million

Also, the exchange rate at the peer-to-peer market depreciated further by 0.78% on Wednesday morning to trade at a minimum of N635.1/$1 compared to N630.2/$1 recorded on Tuesday morning. This is the highest rate recorded at the unofficial market, according to data tracked by Nairalytics.

Nigeria’s external reserves increased by 0.01% on Monday, 18th July 2022 to stand at $39.45 billion from $39.43 billion recorded as of the previous day. This represents the 27th straight day of improvement for the nation’s foreign reserve.

The external reserve had been on a downward trend due to the continuous intervention by the Central Bank in the FX market in order to ensure the stability of the local currency. However, elevated crude oil prices have seen the reserve level improve.

Trading at the official NAFEX window

The exchange rate at the official market appreciated on Tuesday, 19th July 2022, gaining 1.16% to close at N424.17 to a dollar as against the N429.13/$1 recorded on Monday, 18th July 2022.