The dollar to naira exchange rate today Wednesday, 29 June 2022 remained largely unchanged at the Investors and Exporters forex window and the Central Bank of Nigeria (CBN)’s section of foreign exchange.
The dollar to naira exchange opened the day at N420.70 to a U.S. Dollar on Tuesday and closed at N421, representing a decline in value of N0.30. Forex traders transacted 206.65 million dollars at the official Investors and Exporters window on Tuesday.
In the CBN forex section, U.S. Dollar was sold at N415.6 by the apex bank to authorised dealers, slightly better than N415.64 it exchanged on Monday.
Against the Pounds Sterling, the Naira appreciated from N509.824 to N508.53. However, against the Euro common currency, the value of the Naira dropped from N433.05 on Monday to N439.5 on Tuesday.
Dollar to Naira Black Market Exchange Rate
Forex scarcity continued to drag on the Naira value in the unregulated foreign exchange market popularly known as the black market.
On Wednesday, the Naira was exchanged at N614 for a United States Dollar on the black market. Representing another decline of N7 from N607 it was sold two weeks ago.
According to traders in that section of forex, rising demand amid a chronic scarcity is responsible for the wide foreign exchange rate of the local currency and could worsen if developed economies plunge into recession as widely projected.
Inflow into emerging economies like Nigeria will drop, hence impeding the apex bank’s ability to service the economy.
Crude Oil
Crude oil extended its gains for four consecutive days on Wednesday after it became obvious that OPEC and its allies will not be able to meet their targets as projected.
Brent crude oil, the international benchmark for Nigerian oil, appreciated to $120 a barrel on Wednesday while the U.S West Texas Intermediate (WTI) rose from $99.33 per barrel a week ago to $112.37 per barrel.
According to Jeffrey Halley, Senior Market Analyst, Asia Pacific, OANDA, said “A surprise drop by US API Crude Inventories by 3.8 million barrels helped the bullish momentum, with markets ignoring the rise in refined product stocks. Disruptions to Libyan and Ecuadorian production were supportive, but the Macron’s remarks yesterday around Saudi Arabia and the UAE’s limited production capacity seems to have been the main driver.”