As FX demand Rises, the Naira Begins March 2022 With A Massive Drop

As FX demand Rises, the Naira Begins March 2022 With A Massive Drop

With FX demand surging, the Naira began March 2022 with a significant drop.

The dollar to naira exchange rate in the parallel market, often known as the black market, fell 1.22 percent on Monday, closing at N580/$1, down from $573/$1 in the previous trading session, which was the same rate it opened the market with on Tuesday morning, March 1, 2022. According to information acquired from BDC operators, this is the case.

On Monday, February 28, 2022, the dollar to naira exchange rate between the Nigerian currency naira and the US dollar at the official Investors and Exporters (I&E) window closed at N416.67/$1.

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The dollar to naira exchange rate at the I&E window declined somewhat on Monday, closing at N416.67/$1, a 0.16 percent drop from N416/$1 in the previous trading session, according to this online news platform.

IMPORTANT NOTE: The exchange rate fluctuates hourly, depending on the number of dollars available and the Demands. What this signifies is… At $580, you can purchase or sell one dollar, and the price can swing dramatically (high or low) within hours.

Meanwhile, FX turnover on the official market fell 40.23 percent to $80.32 million on Monday, compared to $134.39 million the previous Friday. In the previous week, the market transacted for a total of $571.1 million.

In the early hours of Tuesday, 1st March 2022, the dollar to naira exchange rate on the Peer-to-Peer (P2P) FX market rose by 1.276 percent to trade at N572.6/$1 compared to N580/$1 on Monday morning.

Trading At The Official NAFEX Window

On Monday, February 28th, 2022, the dollar to naira exchange rate at the Investors and Exporters window ended at N416.67/$1, a 0.16 percent decrease from the previous month’s rate of N416/$1.

On Monday, the opening indicative rate closed at N415.67/$1, a 32 kobo depreciation from the N415.35/$1 recorded on Friday, February 25, 2022.

Over intra-day trade, the highest rate recorded was N444/$1 before it ended at N416.67/$1, while it sold for as low as N410/$1 during the same period.

Meanwhile, on Monday, February 28th, 2022, FX turnover at the official window fell by 40.23 percent to $80.32 million.

Forex turnover at the I&E window decreased from $134.39 million on Friday, February 25, 2022, to $80.32 million on Monday, according to data analyzed by Nairametrics from FMDQ.

Crypto Market

In the early hours of Tuesday morning, the crypto market began on a strong note, with the industry market capitalization rising 0.39 percent to $1.882 trillion. Similarly, after a big drop in the two previous trading sessions, the flagship cryptocurrency recovered 0.79 percent to trade at $43,532.76 at the same time.

On Tuesday morning, Ethereum rose 0.14 percent to trade at $2,927, while Solana lost 2.62 percent to retail at $97.1125, Terra lost 2.6 percent to trade at $89.0349, and Uniswap lost 1.23 percent to trade at $10.4.

Even though the dollar to naira exchange rate opened in the parallel market at 580 for $1 today, the Central Bank of Nigeria (CBN) does not recognize the parallel market, also known as the black market. As a result, anyone in need of currency should contact their bank, with the I&E window being the sole known exchange, according to the apex bank.

Disclaimer: TOUCHAHEART NIGERIA does not set or determine forex rates. The official NAFEX rates are obtained from the website of the FMDQOTC. Parallel market rates (black market rates) are obtained from various sources including online media outlets. The rates you buy or sell forex may be different from what is captured in this article.