- Naira made a marginal recovery on Wednesday, October 5, 2022, after declining to its worst the day before
- Data from the black market operators said the naira gained about N10 against the US dollar, representing a 1.39 per cent appreciation
- But at the peer-to-peer, official and NAFEX windows, the performance of the naira was very abysmal
The exchange rate between the naira and the US dollar was moderate on the black market after spiralling down to N740 naira to the dollar.
On Wednesday, October 5, 2022, the naira gained N10 against the US greenback to exchange at N730 per dollar at the parallel market from N740 per dollar it traded on Tuesday, October 4, 2022, representing a 1.35 per cent.
Woeful performance at the official market
According to reports, information from black market operators indicates that there has been a marginal improvement in forex liquidity.
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However, at the Cryptocurrency peer-to-per market, the naira was exchanged for N730.3 to the US dollar on the morning of Wednesday, October 5, 2022, declining by 1.94 per cent from the N716 per dollar it traded the previous day.
At the official exchange rate market, the naira depreciated slightly to end the day at N437.25 to the dollar on Tuesday, October 4, 2022, representing a 0.05 per cent decline compared to N437.03 to the dollar on Friday last week.
About $108.24 million was traded on Tuesday, October 4, 2022, signalling an improvement from the $54.89 million it exchanged for the day before.
The country’s external reserves stood at $38.25 billion on September 30, 2022, a decrease of 0.8 per cent from $38.28 billion recorded the day before.
At the Nigerian Autonomous Foreign Exchange Rate (NAFEX) window, the local currency closed at N437.25 per cent to a dollar on Tuesday, October 4, 2022, from N437.03 per dollar recorded the day before.
Tsunami hits the Naira as it exchanges for N730 to a dollar
Recall that Legit.ng has reported that The surging strength of the US dollar is having severe adverse effects on Nigeria's local currency despite moves by the Central Bank of Nigeria to mop up excessive liquidity in the system.
The recent moves by the CBN were supposed to stop the naira from further depreciation.
On Thursday, September 29, 2022, the exchange rate between the naira and the US greenback fell to a record low in the black market, trading at N730 per dollar.