Naira Exchange Rates Mixed Across Forex Markets

The value of the Nigerian Naira improved against the United States Dollar, the Pound Sterling and the Euro at the Central Bank of Nigeria (CBN) regulated foreign exchange market, Investors King reports.

The apex bank quoted rate is the rate at which the central bank sells or buys from Deposit Money Banks (DMBs) and International Money Transfer Operators (IMTOs).

Against the United States Dollar, the Naira appreciated by N0.09 from N415.92 a U.S. Dollar to N415.33. Also, the Nigerian Naira improved against the Pound Sterling and Euro to N522.532 and N439.865 from N527.6777 and N444.0362, respectively.

At the Investors and Exporters FX Window, Naira opened the day at N418.38 to a U.S. Dollar on Wednesday and lost 0.20% to close at N419.33. Investors at the window exchanged $82.56 million.

Black Market Naira to Dollar Exchange Rate

At the unregulated peer-to-peer forex section, the Naira was exchanged at N580 to a U.S Dollar in Ibadan. Exchange rates vary depending on liquidity and demand in each state.

However, the Central Bank of Nigeria has warned against patronising that section of forex and blamed operators for some of Nigeria’s forex challenges.

Crude Oil

Oil prices declined on Thursday as concerns over demand in China, the world’s largest importer of the commodity, continue to disrupt the global crude oil outlook.

Brent crude oil, the global benchmark for Nigerian oil, shed 0.59% to $104.70 a barrel while the U.S. West Texas Intermediate crude oil slipped by 0.47% to $101.54 a barrel.

In Beijing, China, public spaces are closed to curb the further spread of COVID-19 in the 22 million population city to avoid a Shanghai-like lockdown. The lockdown in Shanghai disrupted supply chains and factory operations in China, raising concerns over the outlook for the country’s economic growth.

U.S Dollar

U.S Dollar extended its bullish run ahead of the Federal Reserve interest rate increase and the jump in global risk due to the ongoing war in Ukraine.

Global uncertainty bolstered the attractiveness of the U.S. Dollar given its status as a haven currency. A haven currency is purchased or owned in a time of crisis to curb risk exposure.

U.S. index extends its bullish run to $103.69, its highest in two years before pulling back to $103.51 as of the time of writing.

Bitcoin to Naira Exchange Rate

As usual global uncertainty continued to drag on the cryptocurrency space as the Bitcoin to Naira exchange rate remained below $40,000 or at N23.535 million a coin. Eth, the token of the Ethereum blockchain protocol, hovering around N1.7 million a coin.

Other cryptocurrencies remained largely subdued due to global uncertainty and risk.