Monday 1st March 2021: The exchange rate between the naira and the US Dollar closed at N409.2/$1 at the Investors and Exporters window.
Naira appreciated against the US Dollar on Monday as it closed at N409.2 to a dollar at the NAFEX window, representing a 0.26% gain when compared to N410.25 recorded on the previous trading day.
Meanwhile, the exchange rate remained stable in the parallel market at N482/$1 on Monday after enduring a depreciation of N2 last week Friday from N480/$1 recorded on the previous day.
Also, forex turnover at the Investor and Exporters (I&E) window decreased by 35% from $37.49 million recorded on Friday to $24.38 million on Monday, 1st March 2021.
Trading at the official NAFEX window
The Naira gained against the US Dollar at the Investors and Exporters window on Monday to close at N409.2/$1. This represents a N1.05 gain when compared to N10.25 recorded on the previous trading day.
- The opening indicative rate closed at N409.3 to a dollar on Monday. This represents a 6 kobo gain when compared to N409.24/$1 recorded on Friday.
- Also, an exchange rate of N415 to a dollar was the highest rate during intra-day trading before it closed at N409.2/$1. It also sold for as low as N381/$1 during intra-day trading.
- Forex turnover at the Investor and Exporters (I&E) window dropped to its lowest level in over a month as it declined by 35% on Monday, March 1, 2021.
- According to the data tracked by Nairametrics from FMDQ, forex turnover decreased from $37.49 million recorded on Friday, February 26, 2021, to $24.38 million on Monday, March 1, 2021.
The world’s largest cryptocurrency, Bitcoin gained significantly on Monday to close at $49,629.33 compared to its previous closing of $43,165.78.
- The highly volatile digital asset has risen 76.2% from the year’s low of $27,734 recorded on the 4th of January 2021.
- The world’s biggest and best-known cryptocurrency has however fallen by 16.3% from the year’s high of $58,354 recorded on the 21st of February 2021.
- Meanwhile, Ether ETH=BTSP, the coin linked to the ethereum blockchain network, rose by 8.74% to $1,546.06 on Monday, adding $124.29 to its previous close.
Oil price decline
Brent Crude oil dipped $0.73 on Monday to close at $63.96 representing a 1.13% decline when compared to $64.42 recorded on the previous trading day.
- Although oil prices had rallied earlier in the day after the U.S House passed the stimulus package of $1.9 trillion and another COVID-19 vaccine was approved for use in the United States.
- The progress in the stimulus package approved by the House on Saturday after weeks of impasses lifted the sentiment on the oil market on Monday before recording a downturn later in the day to close negative.
- Meanwhile, Analysts are expecting next week’s meeting of OPEC and its allies to result in more supply returning to the market as the oil prices rally over $60 per barrel.
- WTI Crude closed at $60.04 (-0.99%), OPEC Basket (-1.61%), Bonny Light (-0.58%), and Natural Gas (+0.04%).
External reserve dips to lowest in two months
Nigeria’s external reserve declined by 0.1% to stand at $35.1 billion as of February 246h 2021 compared to $35.14 billion recorded as of 25th of February.
- This represents the lowest external reserve position Nigeria has recorded in two-months when it stood at $34.98 billion as of 24, December 2020.
- It is also worth noting that Nigeria lost over $1.2 billion in external reserves in the month of February.
- According to data obtained from the Central Bank of Nigeria (CBN), external reserves declined from $36.3 billion as of 29th of January 2021 to $35.1 billion as of 26th of February 2021.
- The decline in Nigeria’s external reserve has persisted in the month of February, despite rallying oil prices in the month. This is a cause for worry, as Nigeria will hope to boost its reserve in order to meet up with its accumulated needs, hindered by the crash in oil prices earlier in 2020.