Naira falls to N580/$1 at black market as demand for FX surges

The exchange rate between the naira and the US dollar closed at N416.67/$1 at the official Investors and Exporters (I&E) window.

The exchange rate at the I&E window depreciated marginally on Monday to close at N416.67/$1, which represents a 0.16% fall compared to N416/$1 recorded in the previous trading session.

In the same direction, the exchange rate at the parallel market depreciated on Monday to close at N580/$1, representing a 1.22% decline compared to $573/$1 recorded in the previous trading session. This is according to information obtained from BDC operators interviewed by Nairametrics.

Meanwhile, FX turnover at the official market dropped by 40.23% to $80.32 million on Monday from $134.39 million recorded on Friday of the previous week. Recall that a total of $571.1 million was traded in the market in the previous week.

On the other hand, the exchange rate at the Peer-to-Peer (P2P) forex market appreciated by 1.276% to trade at N572.6/$1 in the early hours of Tuesday, 1st March 2022 compared to N580/$1 recorded on Monday morning.

Trading at the official NAFEX window

The exchange rate at the Investors and Exporters window closed at N416.67/$1 on Monday, 28th February 2022, which represents a 0.16% depreciation compared to N416/$1 recorded in the previous month.

The opening indicative rate closed at N415.67/$1 on Monday, representing a 32 kobo depreciation compared to the N415.35/$1 recorded on Friday, 25th February 2022.

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 40.23% to $80.32 million on Monday, 28th February 2022.

According to data tracked by Nairametrics from FMDQ, forex turnover at the I&E window decreased from $134.39 million recorded on Friday, 25th February 2022 to $80.32 million on Monday.

Crypto market

The crypto market started on a positive note with a 0.39% appreciation in the industry market capitalization to stand at $1.882 trillion in the early hours of Tuesday morning. In the same vein, flagship crypto asset gained 0.79% as of the same time to trade at $43,532.76 having witnessed a significant downturn in the two previous trading sessions.

Also, Ethereum gained 0.14% to trade $2,927, while Solana dipped 2.62% to trade at $97.1125, Terra recorded a 2.6% decline in price to trade at $89.0349, while Uniswap dipped 1.23% to trade at $10.4 on Tuesday morning.