Naira falls at NAFEX window as Bitcoin rises above $63,000, an all-time record high
Naira depreciated against the US Dollar at the NAFEX window on Tuesday to close at N411/$1.
Tuesday,13th April 2021: The exchange rate between Naira and the US Dollar closed at N411/1$ in the Importers and Exporters window, where forex is traded officially.
Naira depreciated against the US Dollar at the NAFEX window on Tuesday to close at N411/$1. This represents a 0.31% drop when compared to N409.75/$1 recorded on Monday, as the world’s largest cryptocurrency, Bitcoin hits an all-time high rising above $63,000.
Meanwhile, the naira remained stable against the dollar at the parallel market on Tuesday, 13th April 2021 to close at N482 to a dollar, the same rate that was recorded on Monday, April 12, 2021.
Trading at the official NAFEX window
Naira depreciated against the US Dollar at the Investors and Exporters window on Tuesday to close at N411 to a dollar. This represents a N1.25 drop when compared to N409.75/$1 recorded on Monday, 12th April 2021.
- The opening indicative rate closed at N409.58 to a dollar on Tuesday. This represents a N1.30 gain when compared to N410.88/$1 recorded on Monday.
- Also, an exchange rate of N436.81 to a dollar was the highest rate recorded during intra-day trading before it closed at N411/$1. It also sold for as low as N400/$1 during intra-day trading.
- Forex turnover at the Investor and Exporters (I&E) window dropped by 18.04% on Tuesday, 13th April 2021.
- A cursory look at the data tracked by Nairametrics from FMDQ showed that forex turnover increased from $45.35 million recorded on Monday, April 12, 2021, to $53.53 million on Tuesday, April 13, 2021.
The world’s most popular digital currency, bitcoin, hit an all-time high above the $63,000 mark, extending its 2021 rally to new heights a day before Coinbase’s share listing in the United States.
- Bitcoin closed at $63, 625.50 with several analysts feeling bullish, with price targets at $70,000 or higher by next month.
- Risks remain, as some analysts choose to wait for confirmation of the breakout in price charts, especially as bullish positioning reaches extreme levels in the futures market.
- The world’s biggest cryptocurrency, which has growing mainstream acceptance as an investment and a means of payment, rose by over 5% on Tuesday. Smaller rival Ethereum also reached a record high of $2,336.75.
- Major firms including BNY Mellon, Mastercard Inc and Tesla Inc are among those to have embraced or invested in cryptocurrencies.
- The digital currency has been widely adopted by many, replacing gold as the global digital-reserve asset.
- Meanwhile, exchange tokens, such as Binance Coin, are seeing their value rise ahead of Coinbase’s public debut as well. Binance Coin, known as BNB, rose 23% on Monday, according to CoinMarketCap.com. Huobi Token and KuCoin Token, among others, also gained.
Oil price gain
Brent crude oil price rose on Tuesday as it closed at $64.08 per barrel, indicating a 1.68% increase compared to $63.02 recorded at the close of trade on Monday on signs of US inventory drawdown.
- Oil extended gains in Asian trading after an industry report pointed to another decline in US crude stockpiles that followed an upbeat assessment of the demand outlook from OPEC.
- The American Petroleum Institute (API) on Tuesday reported a draw in crude oil inventories of 3.608 million barrels for the week ending April 9. Analysts had predicted a draw of 2.889 million barrels for the week.
- OPEC boosted its consumption forecast for this year and predicted the market recovery will continue.
- The latest data from the Energy Information Administration says that while inventories of crude oil are falling, U.S. oil production slipped from 11 million BPD to 10.9 million BPD during the week ending April 2.
- Brent Crude closed at $64.08 (+0.64%), WTI Crude closed at $60.62 indicating 0.73% gain, Bonny Light, $62.56 (+0.58%), OPEC Basket (+0.52%) to close at $61.46 while Natural gas rose by 0.23% to close at $2,625
Nigeria’s external reserve gained $102 million on Monday, 12th April 2021 to close at $35.138 billion, being the highest external reserve position recorded in over a month.
- This indicates a 0.29% increase when compared to $35.036 billion recorded on Friday, 9th April 2021.
- It also represents an increase in the country’s external reserve position for the 15th consecutive day, having endured a significant downturn earlier in the year. Nigeria’s reserve has added a total of about $722 million in 15 days.
- This recent increase in Nigeria’s external reserve could however be attributed to the increase in crude oil prices recorded earlier in March before the recent bearish trade in the crude market.
- It could be attributed to the possible increase in diaspora remittance as the CBN offers incentives for every unit of a dollar received in Nigeria from diaspora remittance.
- The external reserve is likely to get a further boost, as the Federal Government recently announced plans to issue $500 million Eurobonds for 2021.
Lagos commences enforcement against building collapse, substandard materials
The state government has moved to actualize its vision of zero tolerance for building collapse.
The Lagos State government said that it has commenced aggressive enforcement against quackery in construction to end building collapse in the state as it called for the support of building professionals.
This is as the state government has moved to actualize its vision of zero tolerance for building collapse.
This disclosure was made by the General Manager of Lagos State Materials Testing Laboratory (LSMTL), Mr Olufunsho Elulade, at its inaugural stakeholders’ conference with the theme, ‘Construction, Material Quality Control and Assurance in Lagos State, on Tuesday in Lagos.
According to a report from the News Agency of Nigeria (NAN), Elulade identified the use of substandard building materials and lack of adherence to quality assurance standards as the major causes of building collapse in the state.
He said the agency will immediately start standard enforcement in the building construction value chain to ensure the use of the right materials.
Elulade said, “We are, hereby, using this medium to state the terms of operations with all our stakeholders across the state; we want to partner with you to move the state forward in order to have safer Lagos for the benefit of all.’’
He emphasized the importance of doing away with the menace of quackery, substandard materials and corruption in the construction sector.
The LSMTL boss outlined the various services offered by its laboratory which includes soil tests, water quality assessment, calibration, destructive and non-destructive tests, among others.
While launching the new logo of the agency, Elulade, pointed out that it was a strategy to eliminate quacks and private laboratories using the agency’s old logo to impersonate its operations and mislead the public.
Also, the Public Relations Officer, Nigerian Institute of Builders (NIOB), Lagos Branch, Mr Olusesanayo Philip said the institute would sustain its public sensitisation campaign adding that the institute was also partnering with LSMTL to sensitise the public on the need to engage professional builders to tame the monster of building collapse in Nigeria.
What this means
The enforcement against quackery and the use of substandard materials in the construction value chain by the Lagos State government will come as a huge relief to residents and a boost to its fight against building collapse.
There have been numerous building collapse incidents in various parts of the state with attendant human casualties, due to the use of substandard materials or non-compliance with the state’s building planning laws and standards.
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