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Naira Remains Stable Across FX Markets Despite Fear Of Depreciation

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Naira Continues To Fall Against Dollar

Naira Remains Stable Across FX Markets Despite Fear Of Depreciation

The exchange rate between the naira and the US dollar closed at N416.50/$1 on Wednesday 10th March at the official Investors and Exporters (I&E) window.

The exchange rate at the I&E window remained stable, albeit a marginal depreciation to close at N416.5/$1 on Wednesday, representing a 0.12% fall compared to N416/$1 recorded on Tuesday, 8th March 2022.

However, naira continues to sell for a minimum of N575/$1 at the Peer-to-Peer (P2P) market, maintaining the same rate in the past three trading sessions. The exchange rate has held its status despite the fear of a devaluation following the Russia-Ukraine face-off that has lingered in the second week.

Meanwhile, the exchange rate at the parallel market depreciated by 0.35% to close at N580/$1 from N578 to a dollar recorded on Tuesday, 8th March 2022. This is according to information obtained from BDC operators interviewed by Nairametrics.

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The depreciation of the naira against the US dollar has been attributed to increased demand for FX in the non-official markets, while the marginal downturn at the I&E window is the usually managed movement, floating between N415/$1 and N416.67$1.

While At The Official NAFEX window

The exchange rate at the Investors and Exporters window closed at N416.5/$1 on Wednesday, 9th March 2022, a 0.12% depreciation from N416 to a dollar recorded on Tuesday.

The opening indicative rate closed at N416.21/$1 on Wednesday, representing a 19 kobo depreciation compared to the N416.02/$1 recorded on Tuesday, 8th March 2022.

An exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N416.5/$1, while it sold for as low as N410/$1 during intra-day trading,

It is worth noting that information on the daily forex turnover at the Investors and Exporters window has not been available on the official exchange rate source (FMDQ).

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Crypto Market

The Crypto market started on a bearish note on Thursday with over $96 billion lost in market capitalization in the early trading hours, as the industry capitalization dipped by 5.32% to stand at $1.713 trillion. The movement in the market can be attributed to the sell sentiments in the most capitalized crypto assets.

Bitcoin, depreciated by 6.45% to trade at $39,253.33 on Thursday morning. In the same vein, Ethereum recorded a 5.01% decline in price to trade at $2,592. Also, Solana dipped by 6.25% to trade at $82.5225. Meanwhile, Terra and Uniswap both dipped by 4.55% and 6.51% to trade at $94.734 and $8.61 respectively.

The crash of the crypto market is following the rally of bitcoin in the previous trading session where the flagship crypto-asset gained over 8% in a single day to hit $41.5k as investors move their funds to cryptos as uncertainty surrounding the Russia-Ukraine war sparks a downturn in the equities market.

Naira Remains Stable Across FX Markets Despite Fear Of Depreciation

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