Dollar to Naira: 6 Times Naira Depreciated in 2022

What is Dollar to Naira?

What is Naira? – Naira is the Nigerian currency. This is the exchange currency used in the country. The currency code for Nairas is NGN and its symbol is (₦).

However, due to the currency’s rank, the international exchange rate is the NGN to USD rate.

What is Dollar? – Dollar is the United States of America’s currency. It is the most commonly converted currency internationally and is regularly used as a benchmark in the Forex market.

The Dollar is used as the standard currency in the international commodity market and has a direct impact on commodity prices.

As the dominant global reserve currency, the Dollar is available in nearly all central banks in the world.

In summary, Dollar to Naira is the exchange of the Naira currency for the Dollar currency. For the purpose of international transactions or, international exchange, participation in the international commodity market and so on.

How many times has Naira depreciated in 2022? –  The Nigerian economy has suffered a huge backdrop due to the constant drop in the nation’s currency. More painful is the fact that the worse is seemingly yet to come (if no dramatic action is taken).

In this article, we will see how many times Naira has dropped in 2022 and the current exchange rate in May.

1. On the 6th of January 2022

On the 6th of January 2022, the Nigerian Naira depreciated marginally against the US dollar to a close at ₦416.25 per $1. This represents a 0.006% fall compared to the previous trading session which was ₦416 per $1.

This, however, also affected forex trading just as it affected the nation’s business and economy. Forex turnover at the official market decreased by 1.1%. It became $113.65 million compared to the previous amount of $114.95.

Furthermore, Naira likewise depreciated in the parallel market by marginally 0.7% to close at ₦572 per $1 compared to the previously recorded ₦568 per $1 towards the end of the year.

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2. On the 21st of February 2022

On this day, the exchange rate between Naira and the US dollar closed at ₦416.67 per $1 at the official Investors and Exporters (I&E) window, representing the first positive movement in the official market in the past four trading sessions.

However, Naira depreciated marginally by 0.17% to close at $576 per $1 compared to the ₦575 per $1 recorded the last Friday.

3. On the 31st of March 2022

Despite the Central Bank of Nigeria’s interventions to defend the value of the Naira, it still depreciated by ₦22 in the first quarter of 2022.

At the official Investors and Exporters (I&E) market, the exchange rate of the Dollar to Naira depreciated to ₦417 per $1. While the Dollar to Naira black exchange rate has maintained its bearish trend pushing forward the Dollar to Naira exchange rate towards ₦600 per $1.

And to safeguard Naira, the CBN has implemented a plethora of restrictions, ranging from prohibiting the selling of dollars to BDCs and the broadcast of black-market rates on AbokiFX.

READ: Pounds To Naira Exchange Rate Today 15th, December 2021

4. On the 5th of April 2022

On this day, the exchange rate of Dollar to Naira at the Official Investors and Exporters window closed at ₦416.83 per $1. This was despite the improved supply in the FX market. The Dollar to Naira exchange rate has depreciated by 0.05% compared to the previously recorded trading session.

However, on the following day which was the 6th of April, Naira depreciated marginally against the US dollar. It traded at a minimum of ₦583 per $1 compared to ₦582 per $1 recorded in the previous trading session. This represents a 0.17% depreciation.

5. On the 10th of May 2022

On this day, the Dollar to Naira exchange rate rose to ₦602 per $1. However, the Dollar to Naira exchange rate closed at ₦418.25 per $1 at the official Investors and Exporters (I&E) window.

6. On the 11th of May 2022

This is the most recent depreciation in the Dollar to Naira exchange rate. The Dollar to Naira exchange rate depreciated further on the 11th of May 2022 in the peer-to-peer market. Trading was set at a minimum of ₦607.32 per $1 compared to the record of ₦602 per $1 recorded the previous day.

However, the Dollar to Naira exchange rate at the parallel market remains stable at ₦590 per $1.

All the above information is obtained from BDCs operating in Nigeria.