December demand for the United States Dollar seems to have dragged on the value of the Nigerian Naira at the parallel market, popularly called the black market on Monday, December 13, 2021. The Naira declined against the United States Dollar on the back of rising demand for the US Dollar by importers and businesses struggling to meet the usual increase in demand for items during the Christman period.
Dollar to Naira Exchange Rate at Black Market
At the unregulated black markt, the Naira saw another fall as it went down to sit at N572 per dollar, inching closer to its all-time low of N575 per dollar recorded back in September 2021 when the Central Bank of Nigeria stopped selling dollars to the bureau de change operators.
Dollar to Naira Exchange Rate at Official Market Today
The Naira maintained its recent range, closing at N415.10 per dollar on Friday according to the Investors and Exporters window where the Naira is traded officially.
It took a decline of N0.03 from the N415.07 per dollar at which it closed on Thursday. The currency opened at N413.69 per dollar, but by the end of all the trading for the day the value of the Naira had gone down to sit at N415.10.
On Monday, December 13 2021, the Naira saw a slight fall in its value and opened at N414.05 per dollar which saw a decline of about N0.36 from Friday’s opening of N413.69 per dollar.
As had been touted since weeks back, the Naira seems to have finally found a resting place. Since about a month ago, the Naira started trading at N415 per dollar consistently and only ever witnessed marginal changes in the value, whether appreciation or depreciation.
The stability would however be welcomed, as it is better than the alternative of having the currency crash steadily.
The FMDQ published the Spot and Forward rates for Friday on its website, as it usually does. Friday’s trading saw all transactions on Friday involving the Naira and Dollar trade between a high of N404 per dollar and a low of N452 per dollar.
For the Forward rate, the currency traded at a high of N418 per dollar but fell up to N446 per dollar.
The rates were different from their usual values, as the usual low of N444 per dollar for the Spot rate went further down to N452 per dollar on Friday. For the Forward rate, its high was better than the N430 per dollar which it recorded on Thursday.
The daily turnover was also considerably lower than what was recorded on Thursday, sitting at $84.44 million. This was considerably lower than the $453 million which it saw on Thursday.
Bitcoin to Naira Exchange Rate
Cryptocurrency rebounded from Omicron caused decline recorded last. Bitcoin, the world’s most dominant cryptocurrency, is presently trading at N20,204,481 per coin, with a market cap of N381.86 trillion. Eth, the second most capitalised cryptocurrency gained 0.23 percent to N1.659 million per coin.
Naira Slides Marginally Against US Dollar, Exchanges at N415
The Nigerian Naira fell slightly against the United States Dollar on Monday, according to the last update from the Central Bank of Nigeria.
The local currency was exchanged at N414.89 per dollar on Friday before depreciating by N0.11 or 0.03 percent to N415 on Monday.
It should be recalled that the Naira plunged to N435 against the United States on Friday 31, December 2021 when the Central Bank of Nigeria (CBN) adjusted its exchange rate by N2 to accommodate the change in Nigeria’s economic realities.
The Naira has now improved by about 4.6 percent against the United States Dollar from the year to date. The improvement was after the market digested and interpreted the CBN action as the usual forex devaluation in line with the apex bank policy.
At the unregulated black market, traders in Abuja sold the greenback at N570 a unit and buy it at N569. CBN had attributed Nigeria’s forex challenges to the activities of black market operators and warned Nigerians to stop patronising that section of forex.
Meanwhile, the crypto space remained bearish across the board ahead of US Federal Reserve rate decisions. Bitcoin to Naira exchange rate declined by 2.5 percent to N17.346 million in the last 24 hours while Eth shed 3.6 percent.
Other cryptocurrencies suffer the same fate as Binance coin, Tether, Cardano and XRP depreciated by 3.70 percent, 0.31 percent, 1.72 percent and 2.93 percent.
Bitcoin looks vulnerable above the $41,000 support level, largely due to the drop in capital inflow into the crypto space ahead of a possible interest rate increase in the world’s largest economy, the United States.
“Bitcoin continues to look vulnerable having failed to bounce back strongly off the recent lows. It appeared to be gathering some upside momentum at times last week but it quickly ran into resistance just shy of $45,000 where it had previously seen support. All eyes are now on $40,000 and whether we’re going to see another run at that major support level,” said Craig Erlam, Senior Market Analyst, UK & EMEA, OANDA, in an email to Investors King.
Naira Gains 1.58 Percent to N416 at Official FX Market, Bitcoin, Other Cryptocurrencies Plunge
The Nigerian Naira gained 1.58 percent or N7.56 against the United States Dollar at the official forex market on Wednesday.
The local currency opened the day at N423.56 to a US Dollar before improving in value to N416 against the greenback. At the official forex window managed by the FMDQ Group, investors traded $114.95 million on Wednesday.
The improvement in Naira value was after the market had digested the Central Bank of Nigeria’s currency adjustment. The central bank had adjusted the Naira to Dollar exchange rate by N2 from N411 to N413 on Friday, leading to devaluation outcry across Africa’s largest economy.
On Friday, the Naira plunged to as low as N435 against the United States Dollar at the official forex trading market and N575 at the unregulated parallel market, popularly known as the black market, before moderating to N416.
Meanwhile, bitcoin and other cryptocurrencies plunged across the board. Bitcoin depreciated by 7.16 percent to $43,058 per coin in the last 24 hours. The decline does not stop there as the second most capitalised digital asset, Eth dipped by 9.77 percent to $3,441.
Solana, Ripple (XRP), Luna and Cardano (ADA) lost 11.48 percent, 8.13 percent, 9.5 percent and 8.6 percent, respectively.
The decline was after the US Federal Reserve minutes of December 14 – 15 meeting released on Wednesday revealed that policymakers are planning to raise interest rates as early as March 2022 to curb escalating inflation rate. Generally, hawkish monetary policy is negative for cryptocurrency as it drags on capital inflow into the space and encourages investors to look into more stable assets for higher interest rates.
According to The Wall Street Journal, the “Federal Reserve officials at their meeting last month eyed a faster timetable for raising interest rates this year, potentially as soon as in March, amid greater discomfort with high inflation.
“Minutes of their Dec. 14-15 meeting, released Wednesday, showed officials believed that rising inflation and a very tight labor market could call for lifting short-term rates “sooner or at a faster pace than participants had earlier anticipated.”
Naira Opens 2022 at N426.25 Against the United States Dollar at Official Forex Window
The Nigerian Naira opened the new year at N426.25 against the United States Dollar on Tuesday, January 4, 2022, at the official foreign exchange window managed by the FMDQGroup.
The local currency plunged to N435 against the US Dollar on Friday after the Central Bank of Nigeria (CBN) adjusted its Naira to Dollar exchange from N411 to N413.49. The adjustment is in line with Godwin Emefiele, governor of the CBN, statement that the country operated a managed-float exchange policy.
Naira pared losses against the US Dollar on Tuesday after forex traders, speculators and hoarders might have analysed CBN forex action and interpreted it as the usual adjustments.
At the unregulated parallel market known as the black market, the Naira plunged to N570 against the United States Dollar on January 4th, 2022. Despite the Central Bank of Nigeria (CBN) discouraging patronage at that section of forex, many Nigerians still relied on the black market for their forex needs.
However, the adjustment may not be unconnected to the change in Nigeria’s economic fundamentals. For instance, the nation’s foreign reserves used to back the Naira have been on a downward trend since hitting $41.8 billion on October 29, 2021. Presently, the reserves stood at $40.5 billion. This is despite oil prices trading at almost $80 a barrel, the highest in recent years.
But because of Nigeria’s inability to improve its production process, lower cost of production and generally increase crude oil output, it has failed to take advantage of the surge in oil prices. Therefore, the CBN adjusted Naira to Dollar exchange rate to reflect the nation’s economic reality of insufficient forex and also enable it meet demands.
C & I Leasing Appoints Ugoji Lenin Ugoji as Group Managing Director/CEO
Consumer Loans Hit N2trn, CBN Attributes Rise to Improved Credit Appraisal by Banks
We Are Not Affiliated With Access Capital Investment Platform, Access Bank Warns
News4 weeks ago
Npower Payment: NASIMS Confirms Payment of Allowance to Non-Graduate Trainees
Technology3 weeks ago
World Mobile, Altaeros Partner to Launch Aerostat Balloons to Connect the Unconnected in Africa
News2 weeks ago
Npower Payment: NASIMS Commence Npower Batch C October Payment, Removes November Payroll Status
News4 weeks ago
Sweden Introduces New Measures to Battle COVID-19
News4 weeks ago
Npower News: FG Launches New Skill Acquisition Programme
Cryptocurrency3 weeks ago
Shiba Inu Burn Update: 351.1 Million Shiba Inu Coin Destroyed In 24 Hours
News4 weeks ago
Osinbajo Lauds Buhari Regime’s Social Investment Programmes
Banking Sector4 weeks ago
FirstBank: Unlocking Wealth in Salary Account