Naira Falls Flat at Parallel Market, Exchanges For N591/$1 as Foreign Reserve Hits $39.74 Billion

Naira Falls Flat at Parallel Market, Exchanges For N591/$1 as Foreign Reserve Hits $39.74 Billion

  • The naira continued its free fall at the parallel market on Tuesday, April 19, 2022 as it exchange for almost N600/$1
  • Having gained marginally on Thursday, April 14, it however collapsed again after the Easter holidays
  • The Nigerian foreign exchange, however, saw a jump as it increased from $39.73 billion to $39.74 billion as the CBN continued intervention to save the naira

The exchange rate between the naira and the dollar fell flat at the Investors and Exporters window where foreign exchange is traded officially. It closed at N417/$1 in comparison to N417.5/$1 recorded at the I&E window.

The Naira gained marginally against the US dollar on Tuesday, April 19, 2022, after the Easter holiday when it appreciated by 0.12 per cent, closing at N417/$1 lower than the close of trading activities on Thursday last week, according to a Nairametrics report.

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Naira, Dollar, Exchange Rate, Foreign reserve
Credit: Jon Feingersh Photography Inc
Naira Falls Flat at Parallel Market, Exchanges For N600/$1 as Foreign Reserve Hits $39.74 Billion
Source: Getty Images

The dollar shows strength at the parallel market

The sum of $155.44 million was traded on Tuesday, April 19, 2022, amounting to 20.81 per cent lower than the $196.28 million traded in the previous trading session.

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At the peer-peer market, the naira collapsed to N591.1/$1 on Tuesday morning which represented the highest rate recorded since the start of the market.

That also means a 0.19 per cent depreciation in comparison N580/$1 on Thursday, April 15, 2022

Foreign reserve shores up

Also, the exchange rate at the parallel market closed at N589/$1 on Thursday which declined by 0.17 per cent in comparison to N588/$1 which was traded on Wednesday, April 14, 2022, as per information gotten from BDCs in Nigeria.

The Punch reports that Nigeria’s foreign reserve saw a significant improvement as the crude oil rebounded. The external reserve gained about 0.02 per cent on Thursday, April 14, 2022, to stand at $39.74 billion in comparison to $39.73 billion recorded the previous day.

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The Central Bank of Nigeria (CBN) continued its intervention in the official foreign exchange market in order to stabilise the naira.

Hard times ahead: Naira to crash to N600 per dollar this season as e-Naira app’s massive downloads continue

Meanwhile, Legit.ng has reported that while the e-Naira is seeing massive and impressive downloads, the actual Naira is eroding in the official market.

On Monday, December 6, the actual Naira closed at N415 at the official Investors and Exports window.

The eNaira has seen commendable adoption after it was launched in October this year. But experts are not sure if those downloading the app are using it or keeping it for future use or for fun.

Source: Legit.ng

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