Naira Gains Massively At Parallel Market Despite Weakening at I&E Window

Naira Gains Massively At Parallel Market Despite Weakening at I&E Window

Flippstack understands that the exchange rate between the naira and the US dollar closed at N416.67/$1 at the official Investors and Exporters (I&E) window., where forex is traded officially.

Naira weakened further against the US dollar on Tuesday with a 0.04% fall to close at N416.67/$1 compared to N416.5/$1 recorded as of the close of trading activities on Monday, 7th February 2022. Naira depreciated at the official window despite the decrease in the demand for the dollar.

On the other hand, Naira appreciated marginally at the parallel market on Tuesday 8th February 2022, to close at N569/$1 compared to N570/$1 recorded in the previous trading session. This is according to information obtained from BDC operators interviewed by Nairametrics.

Similarly, the exchange rate appreciated at the Peer-to-Peer (P2P) forex market, trading at a minimum of N574.17 to a dollar on Wednesday morning. This represents a 0.057% uptick as opposed to N574.5/$ recorded in the previous trading session.

Meanwhile, Nigeria’s foreign reserve continued with a downtrend having reduced by 0.093% to close at $39.94 billion as of Monday, 7th February 2022.

While trading at the official NAFEX window

The exchange rate at the Investors and Exporters window closed at N416.67/$1 on Tuesday, 8th February 2022, which represents a 0.04% depreciation compared to N416.5/$1 recorded in the previous trading session

The opening indicative rate jumped to N415.98/$1 on Tuesday, which represents a 56 kobo depreciation compared to N415.42/$1 recorded in the previous trading session.

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, forex turnover at the official window dropped by 40.4% to $74.56 million on Tuesday.

According to data tracked by Nairametrics from FMDQ, forex turnover at the I&E window decreased from $125.1 million recorded on Monday 7th February 2022 to $74.56 million on Tuesday 8th February 2022.

Naira Gains Massively At Parallel Market Despite Weakening at I&E Window