Naira has fallen massively again in the black market with a new exchange rate emerging.
Newsone reports that the dollar to naira exchange rate between the Nigerian official currency and that of the United States closed at N418/$1 at the Investors and Exporters (I&E) window.
This online news platform understands that the naira recorded a 0.24% gain against the US dollar on Wednesday to close at N418/$1 compared to N419/$1 registered as of the close of trading activities on Tuesday, 24th May 2022.
Similarly, a total of $108.33 million in FX exchanged hands in the market on Wednesday, representing a 24.43% increase compared to $87.06 million traded in the previous session.
On the other hand, the dollar to naira exchange rate at the peer-to-peer market declined further by 0.07% to trade at $608.55 on Thursday morning, compared to N608.12/$1 recorded at the same time the previous day. The market has already seen the naira depreciate by 0.39% since the CBN announced the increase in interest rates.
Meanwhile, Newsone Nigeria reports that the exchange rate at the parallel market better known as the black market closed at N609/$1 on Wednesday, a 0.66% downturn compared to N605/$1 recorded in the previous trading session. Recall that the exchange rate fell sharply last week as FX liquidity tightened in the market. This is according to information obtained from BDCs operating in Nigeria.
LAGOS PARALLEL MARKET RATES May 26, 2022 (BLACK MARKET): dollar to naira exchange rate today black market
| Dollar to Naira (USD to NGN) | Black Market Exchange Rate Today |
| Buying Rate | 605 |
| Selling Rate | 609 |
The local currency opened at N609.00 per $1 at the parallel market otherwise known as the black market, today, Thursday, 26 May 2022, in Lagos Nigeria, after it closed at N605.00 per $1 on Wednesday, 25 May 2022.
Even though the dollar to naira opened in the parallel market at ₦609 per $1 today, Newsone reports that the Central Bank of Nigeria (CBN) does not recognize the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.
Newsone Nigeria reports that on the black market, the players buy a dollar for N605 and sell for N609 on Thursday, May 26, 2022, after they bought N600 and sold for N605 on Wednesday, May 25, 2022.
Trading at the official NAFEX window
Naira recorded a second successive gain against the US dollar on Wednesday, with a 0.24% appreciation to close at N489/$1, its highest level in almost three weeks.
- The opening indicative rate closed at N417.79/$1 on Wednesday, 25th May 2022, a 21 kobo appreciation compared to N418/$1 recorded in the previous trading session.
- Furthermore, an exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N418/$1, while it sold for as low as N413/$1 during intra-day trading.
- A total of $108.33 million in FX value was traded on Wednesday, representing a 15.69% increase compared to $87.06 million traded on Tuesday
Crypto market update
The crypto market recorded a marginal decline on Wednesday, closing with a 0.07% drop in market capitalization to stand at $1.252 trillion as of 23:09 (WAT). Although bitcoin recorded a 0.5% increase in price to trade at $29,788.51, Ethereum lost ground by 0.72% to trade at $1,963.
While Uniswap and Terra bother gained 0.36% and 5.62% to trade at $5.62 and $0.000186 respectively on Wednesday, Solana recorded a 2.06% price decline to trade at $48.605.
Nigeria’s external reserves depreciated further by 0.07% on Tuesday to stand at $38.63 billion from $38.65 billion recorded as of the previous day. The decline in the external reserve level can be attributed to the continuous intervention by the Central Bank in the FX market in order to ensure the stability of the local currency.
Meanwhile, Newsone Nigeria reports that the USD started this week at ₦605 in Parallel Market also known as Black Market on Monday, May 23, 2022, in Lagos Nigeria, after it opened at ₦595 last week Monday, May 16, 2022.
