Naira has crashed massively at P2P Market, See New Exchange Rates below.
Newsonline reports that the Nigerian official currency crashed today with the dollar to naira exchange rate at the peer-to-peer market depreciating by 0.852% to trade at a minimum of N592/$1 on Thursday, May 5, 2022, compared to N587/$1 recorded on Wednesday, May 4, 2022.
This online news platform understands that the dollar to naira exchange rate between the naira and the US dollar closed at N418/$1 at the Investors and Exporters (I&E) window, where FX is traded officially.
The exchange rate at the official window strengthened on Wednesday to close at N418/$1 compared to N419/$1 recorded as of the close of trading activities in the previous week. A total of $162.7 million in FX value was traded on Wednesday, which is 2.6% higher than the $158.55 million traded on Friday last week.
Meanwhile, Newsonline Nigeria reports that the exchange rate at the parallel market remained stable at N590 to a dollar. This is according to information obtained from BDCs operating in Nigeria.
Nigeria’s external reserve depreciated by 0.09% on Thursday, 29th April to stand at $39.58 billion, compared to $39.62 billion recorded as of the previous day. The decline in the external reserve level can be attributed to the continuous intervention by the Central Bank in the FX market in order to ensure stability of the local currency.
Trading at the official NAFEX window
Newsonline reports that the Nigerian official currency exchange rate at the Investors and Exporters window closed at N418/$1 on Wednesday, 4th May 2022, representing a 0.24% appreciation against the US dollar compared to N419.33/$1 recorded in the previous trading session.
The opening indicative rate closed at N417/$1 on Wednesday 5th May 2022, which is 30 kobo lower than the N417.3/$ recorded in the previous trading session.
Furthermore, an exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N418/$1, while it sold for as low as N410/$1 during intra-day trading,
A total of $162.7 million was traded in FX at the official Investors and Exporters window on Wednesday.
According to the data from the FMDQ, forex turnover improved marginally by 2.62% from $158.55 million recorded on Friday, 29th April 2022 to $162.7 million on Wednesday.
Crypto market update
On the other hand, the crypto market is currently trailing on a negative note, with the industry market capitalization losing ground by 41 basis points as of press time on Thursday to stand at $1.781 trillion. This is following a similarly bearish performance by the flagship crypto asset as bitcoin dipped 0.3% to trade at $39,572.76.
Ethereum in the same vein recorded a 0.24% decline to trade at $2,933.02, Solana however gained 0.33% to trade at $93.07.
Terra dipped 0.21% to trade at $85.9776134, while Uniswap recorded a 0.25% decline to trade at $7.92.
The local currency opened at N588.00 per $1 at the parallel market otherwise known as the black market, today, Friday, 6 May 2022, in Lagos Nigeria, after it closed at N587.00 per $1 on Thursday, 5 May 2022.
Even though the dollar to naira opened in the parallel market at ₦588 per $1 today, Newsonline reports that the Central Bank of Nigeria (CBN) does not recognise the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.
Newsonline Nigeria reports that on the black market, the players buy a dollar for N583 and sell for N588 on Friday morning, May 6, 2022, after they bought N582 and sold for N587 on Thursday, 5 May 2022.
Meanwhile, Newsonline Nigeria reports that the USD started this week at ₦587 in Parallel Market also known as Black Market on Monday, May 2, 2022, in Lagos Nigeria, after it opened at #587 last week Monday, April 25, 2022.