Tuesday 16th February 2021: The exchange rate between the naira and the dollar remained stable closing at N409.67/$1 at the NAFEX (I&E Window) where forex is traded officially. This is as the dollar supply rose slightly by 8% on Tuesday.
Naira closed against the US Dollar at N409.67/$1, this was the same rate that it closed on Monday, 15th February 2021. This also represents the sixth straight trading day Naira closed in the N400/$1 region.
At the parallel market where forex is traded unofficially, the naira remained stable closing at N473/$1 on Tuesday, February 16. This was the same rate that it closed on the previous trading day.
Also, Nigeria’s external reserves lost $124 million in 3 days as it fell to $35.633 billion as of February 15, 2021, from $35.757 billion as of February 12, 2021, according to data from CBN.
READ: Another devaluation lurks as dollar sells for N422.59 at NAFEX
Trading at the official NAFEX window
The Naira remained stable against the dollar at the Investors and Exporters (I&E) window on Tuesday, closing at N409.67/$1. This was the same rate that it closed on the previous trading day.
- The opening indicative rate closed at N406.54 to a dollar on Tuesday. This represents a N1.41 drop when compared to N405.13 to a dollar that was recorded the previous trading day on Monday, February 15, 2021.
- An exchange rate of N410 to a dollar was the highest rate during intra-day trading before it closed at N409.67 to a dollar. It also sold for as low as N390/$1 during intra-day trading.
- Forex turnover at the Investor and Exporters (I&E) window rose by 7.9% on Tuesday, February 16, 2021.
- According to the data tracked by Nairametrics from FMDQ, forex turnover increased slightly from $28.21 million on Monday, February 15, 2021, to $30.44 million on Tuesday, February 16, 2021.
READ: Naira gains at NAFEX window as Oil prices approach $60 mark
Cryptocurrency Watch
The world’s largest cryptocurrency, Bitcoin, reached a new record high as it surges past the $50,000 mark for the first time.
- The prices have been up by over 70% so far this year and rose by 4.9% to $50,548 on Tuesday evening.
- This also follows exciting news that includes the world’s most valuable car maker Tesla accepting Bitcoin for future payments, and MicroStrategy planning to raise another $600 million to buy the flagship crypto.
- Its record-breaking rally is however regarded as less volatile than 2017.
- A single bitcoin now trades for N18.9 million down 3.3% while Etherum trades for N665.4k down 7.29%. This was as of 7am Wednesday, February 17th 2021.
READ: Big whale makes biggest Bitcoin transfer worth $5.6 billion for just $18
Oil price heads towards $64 mark
Brent crude oil price hit $63.47, on Tuesday evening, the highest price since January last year as it goes past the $63 mark.
- The oil prices continue to head higher as Texas still grapples with the arctic blast.
- The massive supply disruption is coming at a time when US inventories are shrinking at an accelerated pace and the Organization of the Petroleum Exporting Countries are holding millions of barrels a day off the market.
- The International Energy Agency (IEA) expects that a recovery in global oil demand would outstrip production in the second half of the year, prompting even quicker inventory draws
- Meanwhile, WTI Crude closed at $60.19 (+0.72), Bonny Light $62.51 (+1.74), and OPEC Basket $62.60 (+2.06).
READ: Oil prices drop on poor energy demand outlook
Nigeria’s external reserve dips despite rallying oil prices
- The external reserve dipped further to $35.633 billion as of February 15, 2021.
- This represents a decline of 0.35% compared to $35.757 billion as of 12th February 2021.
- The foreign reserve has been on a steady decline since the 25th of January 2021, losing a total of $888 million in 15 to date.
- Meanwhile, this is still an improvement on the $35.37 billion that it was as of December 31, 2020.
Nigeria also needs the external reserves to hit $40 billion if it is to adequately meet some of the pent up demand that has piled up since 2020 when oil prices crashed and the pandemic caused major economic lockdowns.
