Naira Slides Further to N419 Per Dollar, Hits N600 at The Black Market

Naira Slides Further to N419 Per Dollar, Hits N600 at The Black Market

  • The naira has lost much of its value as it continues to buckle before major currencies of the world, especially the US dollar
  • At the official Investors and Exporter window, the naira traded at N419 per dollar on Monday, May 9, 2022
  • However, at the parallel market on Tuesday, the naira plummeted to N600 per US dollar after trading at N594 per dollar the previous day

The exchange rate between the Nigerian currency, the naira and the US dollar widened further at the official Investors and Exporters (I&E) window, closing at N419 per dollar.

Nairametrics reports that the exchange rate at the official window grew weaker against the US dollar on Monday, May 9, 2022, to close at N419 per dollar from N417 per dollar as of the closing trading in the preceding week.

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Foreign Exchange, Naira, Dollar
Naira loses at the parallel market Credit: Ijubaphoto
Source: Getty Images

Naira sheds massive value in two days

$53.15 million in Foreign Exchange value were traded on Monday, May 9, 2022, amounting to 39 per cent lower than the $88.42 million traded on Friday, May 6, 2022.

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It should be noted that the supply on Monday shows the lowest in over a month, since April 4, 2022, when N42.39 million foreign exchange value was traded.

However, in the parallel market otherwise known as the black market, the naira firmed up at N590 per dollar, information obtained from Bureau de Change (BDC) operators shows.

External reserve dips by 0.15 per cent

The naira fell massively against the US dollar on Tuesday, May 10, 2022, at the parallel market as it traded at N600 per dollar compared to N594 per dollar the same time the day before.

Nigeria’s external reserve went down by 0.15 per cent on Friday, May 6, 2022, to stand at $39.31 billion in comparison to $39.37 billion recorded the day before.

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The decrease in the external reserve may be due to the Central Bank of Nigeria’s ongoing interventions in the Forex market so as to stabilise the naira.

Naira slumps further, trades at N595 per dollar amid forex scarcity

Recall that has reported that Foreign Exchange scarcity has driven the naira to trade at N595 per dollar on Friday, May 7, 2022, in the parallel market.

The Punch report says that Bureau de Change operators said the dollar was purchased at N585 per dollar and sold at N595 on Friday, May 7, 2022.

The local currency was purchased at N590 to a dollar on Monday, May 2, 2022.


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