Business

Naira strengthens at black market as exchange rate rises to N560/$1

The Naira surged to N560/$1 in the early hours of Thursday, December 30, 2021, on the parallel market, marking a huge rise. According to data gathered by Nairametrics from Bureau De Change operators in Lagos State, this is the case.

On Thursday, the parallel market exchange rate increased by 1.58 percent to N560/$1, up from N569/$1 the day before. The exchange rate of N560 to $1 was the lowest since November 29th, 2021.

On the other hand, the P2P market’s exchange rate fell from N568.2/$1 on Wednesday, December 29th, 2021 to N570.2 in the early hours of Thursday, December 30th, 2021. The naira has been steadily depreciating over the last week, sliding from N560.95/$1 before the Christmas break to as high as N571.4/$1 on the P2P market.

I&E window (Official market)
The exchange rate closed at N415/$1 on Wednesday, 29th December 2021, representing a 0.02% appreciation when compared to N415.1/$1 recorded in the previous trading session

Forex turnover at the I&E window dropped from $168.62 million recorded on Friday 24th December 2021 to $119.48 million on Wednesday 29th December 2021.

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An exchange rate of N446.5/$1 was the highest rate recorded during intra-day trading before it settled at N415/$1, while it sold for as low as N405/$1 during intra-day trading.
The opening indicative rate closed at N414.05/$1 on Wednesday, which represents a 49 kobo depreciation compared to N413.54/$1 recorded in the previous trading session.

According to BDC operators interviewed by Nairametrics, the naira strengthening against the US dollar at the parallel market is attributed to the Christmas holiday period, as demand for FX dropped during the holiday period.

Alhaji Suleiman told Nairametrics that due to the holiday period as Nigerians are busy enjoying the festivities, demand for dollar has dropped which has dragged the exchange rate downwards.

Recall that the exchange rate had hovered around N570/$1 since September 2021, after the central bank clamped down on AbokiFX after accusing the online website of manipulating exchange rate, which is tantamount to “economic sabotage”, according to the apex bank.

The rate, however, dropped to as low as N535/$1 on the 11th of November before depreciating to N570/$1 towards the end of the month. Naira has now received significant boost against the US dollar at the black market following Christmas holiday festivities.

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