The exchange rate for Dollar to Naira today dipped slightly to N416.54 at the official foreign exchange market managed by the Central Bank of Nigeria (CBN).
This represents a decline of N0.28 or 0.067 percent from N416.26 it exchanged on January 31, 2022.
Against the British pounds, the local currency slid from N561.92 on Tuesday to N565.20 on Wednesday. The trend wasn’t different with the Euro common currency as the Naira dipped to N471.44, slightly below N469.40 it traded on Tuesday.
At the Peer to peer (P2) forex window managed by the FMDQ Group, the Dollar to Naira exchange rate dropped from N415.50 it opened against the United States Dollar to N416.25 on Wednesday. Forex traders at the window transacted forex worth $102.07 million on Wednesday.
Nigeria’s economic uncertainty amid the drop in revenue generation continued to drag on the nation’s ability to prop up the value of the Nigerian Naira and deepen economic activity in Africa’s largest economy. As an economy that depends on crude oil revenue to grow economic activity, Nigeria is still struggling to up its crude oil production despite the recent jump in oil prices.
A recent report from OPEC showed Nigeria’s crude oil production stood at 1.46 million barrels per day in January 2022, against the 1.71 million per day quota assigned to the country by OPEC+.
Crude Oil
Brent crude oil pulled back slightly after OPEC+ agreed to maintain the same production level in March. Brent crude oil, global benchmark use in pricing Nigeria’s oil, dipped by 0.5 percent to $88.95 a barrel on Thursday. The U.S. West Texas Intermediate crude oil was also down, shedding 53 cents, or 0.6 percent at $87.73 a barrel.
“A risk off environment and a modestly stronger dollar are one driver weighing on crude prices,” said Giovanni Staunovo, commodity analyst at UBS.
“The other is probably the realization that the geopolitical tensions in Eastern Europe and the Middle East have so far not disrupted oil production.”
Bitcoin
Bitcoin to Naira exchange rate declined by 2.47 percent to N15.242 million in the last 24 hours. While the Ethereum (Eth) declined by 2.18 percent to N1.089 million. The uncertainty surrounding the cryptocurrency space remained high ahead of the United States interest rate increase and rising US Dollar.