Naira kicks off July strong, as Forex transactions rise 95% in H1, 2022 - TrendyNewsReporters Naira kicks off July strong, as Forex transactions rise 95% in H1, 2022 - TrendyNewsReporters
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Naira kicks off July strong, as Forex transactions rise 95% in H1, 2022

by Ebor Cletus Ralph Jr

Although the Nigerian naira began July with a slight rise, the future looks gloomy due to pressure from forex shortages and the Joe Biden administration’s interest rate hike.

According to information from FMDQ Securities on Friday, July 1, the Naira marginally strengthened at the Investors and Exporters window, the official foreign exchange market, to N425.00/$1 from N425.05/$1 the day before.

Due to a decrease in pressure from demand, the overall value of transactions rose by just 2.9%, or $2.22 million, from the $76.64 million reported on Thursday to $78.86 million.

Additionally, the local currency gained N3.56 to sell at N434.03/€1 as opposed to Thursday’s rate of N437.59/€1 on the interbank market, while it increased by N5.26 versus the British pound to N500.65/£1 from N505.91/£1.

The same result was seen in the parallel market on Friday, where the Naira increased by N5 or 0.82 percent against the dollar to trade at N607/$1 as opposed to N612/$1 the day before.

However, the exchange rate between the Nigerian Naira and the US dollar via the Peer-2-Peer (P2P) window decreased by N6, or 0.98 percent, as it was exchanged at N619/$1 as opposed to N613/$1 the day before.

In the meantime, the total amount of dollars traded (turnover) by investors and exporters from January to June 30 increased by 95% year over year (YoY) to $20.23 billion in the first half of the year (H1’22) from $10.34 billion in the prior year.

According to FMDQ data released over the weekend, turnover decreased by 30% on a quarterly basis from $11.9 billion in the first quarter of 2022 (Q1’22) to $8.33 billion in the second quarter of 2022 (Q2’22).

On a month-on-month basis, the trading volume showed consistent fluctuation through the entire half-year, 2022.

Turnover stood at $3.22 billion in January but fell by 33.8 per cent to $2.13 billion in February.

In March, it rose by 207 per cent to $6.55 billion, only to fall again by 59 per cent to $2.63 billion in April.

This trend continued in May when turnover fell by 4.9 per cent to $2.5 billion. The trend was reversed in June as turnover rose 28 per cent to $3.2 billion.

prelliotaglobalconcept

TV Presenter/ Content Writer

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