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Currencies

Exchange rate gains at NAFEX window as external reserve plunges further

Naira appreciated against the US Dollar on Monday to close at N409.2 to a dollar as Nigeria’s external reserve loses an additional $36.65 million.

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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.

READ: Naira gains at NAFEX window as external reserve plunges $1.1 billion in less than a month

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.

Cryptocurrency watch

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.

READ: Naira strengthens at NAFEX window despite 79.3% drop in dollar supply

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Sigma Pensions

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.

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Currencies

Naira appreciates at NAFEX as Nigeria’s external reserve is set to get a boost

Naira gained against the US Dollar at the NAFEX window on Friday to close at N409/$1.

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Naira falls across forex markets as businesses resume after public holidays

Friday, 9th April 2021: The exchange rate between Naira and the US Dollar closed at N409/1$ in the Importers and Exporters window, where forex is traded officially.

Naira gained against the US Dollar at the NAFEX window on Friday to close at N409/$1. This represents a 0.16% gain when compared to N409.65/$1 recorded on Thursday, as the country’s external reserve is set to receive a boost with the planned issuance of $500 million Eurobonds.

Meanwhile, the naira maintained stability at the parallel market on Friday, 9th April, 2021 to close at N485 to a dollar, the same rate as maintained since last week.

READ: Nigeria’s external reserve drop by $261 million in 15 days, oil firms to sell forex to CBN 

Trading at the official NAFEX window

Naira appreciated against the US Dollar at the Investors and Exporters window on Friday to close at N409 to a dollar. This represents a 65 kobo gain when compared to N409.65/$1 recorded on Thursday, 8th April 2021.

  • The opening indicative rate closed at N409.79 to a dollar on Friday. This represents a 71 kobo gain when compared to N410.50/$1 recorded on Thursday.
  • Also, an exchange rate of N420 to a dollar was the highest rate recorded during intra-day trading before it closed at N409/$1. It also sold for as low as N395/$1 during intra-day trading.
  • Forex turnover at the Investor and Exporters (I&E) window dropped by 41.1% on Friday, 9th April 2021.
  • A cursory look at the data tracked by Nairametrics from FMDQ showed that forex turnover declined from $93.69 million recorded on Thursday, April 8, 2021, to $55.21 million on Friday, April 9, 2021.

READ: Naira gains at NAFEX as oil prices record biggest single day loss in 11 months

Cryptocurrency watch

The world’s most popular digital currency, bitcoin recorded a 3.05% increase in value on Saturday evening, 10th April 2021.

  • Bitcoin went up by 3.05% to trade at $59,907 on Saturday evening, compared to $58,135 recorded at the close of trade on Friday.
  • This is coming after it had risen to $61,222.22 on Saturday, its highest in nearly a month, propelled by talks of constrained new supplies against evidence of wider adoption.
  • Bitcoin (BTC) is up 116% from the year’s low of $27,734 on January 4. It crossed the $60,000 mark for the first time on March 13, hitting a record $61,781.83 on Bitstamp exchange, just after U.S. President Joe Biden signed his $1.9 trillion fiscal stimulus package into law.
  • The digital currency has been widely adopted by many, replacing gold as the global digital-reserve asset.

READ: Nigeria’s external reserve drop by $261 million in 15 days, oil firms to sell forex to CBN 

Sigma Pensions

Oil price gain

Brent crude oil price declined on Sunday evening as it closed at $63.02 per barrel, indicating a 0.28% drop compared to $63.2 recorded at the close of trade on Friday.

  • This is as the fall in oil prices especially towards the end of last week can be attributed to demand concerns and Covid-19 lockdowns in some major economies, due to a spike in infections.
  • The Russian government has said that the coronavirus pandemic could continue to impact on global oil demand until 2024.
  • Crude oil prices had recorded a marginal increase during the week despite the decision of the OPEC+ to ease production cuts in the coming months. However, US Shale Giant has commended the OPEC+ group for bringing supply and demand back to balance.
  • Brent Crude closed at $63.02 (+0.11%), WTI Crude closed at $59.39 indicating 0.12% gain, Bonny Light, $61.55 (+0.46%), OPEC Basket (+0.89%) to close at $61.22 while Natural gas gained 0.67% to close at $2.543.

External reserve

Nigeria’s external reserve gained $29 million on Thursday, 8th April 2021 to close at $35.006 billion, being the highest external reserve position recorded in over a month.

  • This indicates a 0.08% increase when compared to $34.977 billion recorded on Wednesday, 7th April 2021.
  • It also represents an increase in the country’s external reserve position for the 13th consecutive day, having endured a significant downturn earlier in the year. Nigeria’s reserve has added a total of about $590 million in 13 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 further boost as the Federal Government recently announced plans to issue $500 million Eurobonds for 2021.

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Currencies

Exchange rate strengthens at NAFEX as dollar supply spikes by 690%

Naira gained against the US Dollar on Thursday to close at N409.65/$1 while dollar supply surges by 690.6%.

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Naira stabilizes at black market as CBN continues its intervention in forex market

Thursday, 8th April 2021: The exchange rate between Naira and the US Dollar closed at N409.65/1$ in the Importers and Exporters window, where forex is traded officially.

Naira gained against the US Dollar on Thursday to close at N409.65/$1. This represents a 0.33% appreciation compared to N411/$1 recorded on Wednesday.

Meanwhile, naira remained stable in the parallel market on Thursday, 8th April 2021 to close at N485 to a dollar, the same rate as maintained since last week.

READ: Naira falls at NAFEX window despite 394% increase in dollar supply

Trading at the official NAFEX window

Naira appreciated against the US Dollar at the Investors and Exporters window on Thursday to close at N409.65 to a dollar. This represents a N1.35k gain when compared to N4111/$1 recorded on Wednesday, 7th April 2021.

  • The opening indicative rate closed at N410.5 to a dollar on Thursday. This represents a N0.76 depreciation when compared to N409.74/$1 recorded on Wednesday.
  • Also, an exchange rate of N419 to a dollar was the highest rate recorded during intra-day trading before it closed at N409.65/$1. It also sold for as low as N394/$1 during intra-day trading.
  • Forex turnover at the Investor and Exporters (I&E) window increased by 690.6% on Thursday, 8th April 2021.
  • A cursory look at the data tracked by Nairametrics from FMDQ showed that forex turnover grew from $11.85 million recorded on Wednesday, April 7, 2021, to $93.69 million on Thursday, April 8, 2021.

Cryptocurrency watch

The world’s most popular digital currency, bitcoin recorded a 0.18% decline in value in the early hours of Friday, 9th April 2021.

  • Bitcoin was down by 0.18% to trade at $58,135 on Friday morning, bur lead compared to $36,199 recorded at the close of trade on Wednesday.
  • Meanwhile, according to a research report, bitcoin is expected to surge around 600$ to hit the $400,000 level in 2021. This has been well met as major financial institutions in the world such as Visa, Goldman Sachs, and Morgan Stanley have embraced the digitalization of money.
  • The digital currency has been widely adopted by many, replacing gold as the global digital-reserver asset.

READ: Naira remains flat as external reserve fall to just 6 months of imports

Oil price gain

Brent crude oil price recorded a marginal increase on Thursday as it closed at $63.2 per barrel, indicating a 0.06% gain compared to $63.16 recorded at the close of trade on Wednesday.

Sigma Pensions
  • Crude oil prices are beginning to record tepid growth demands are expected to increase due to revived optimism in the market as the United Kingdom has given the first vaccine to about half of its population, while the US has vaccinated about 30% of its population.
  • Crude oil prices have recorded a marginal increase during the week despite the resolve of the OPEC+ to reduce production cuts in the coming months. However, US Shale Giant have commended the OPEC+ group in bringing supply and demand back to balance.
  • Brent Crude closed at $63.2 (+0.06%), WTI Crude closed at $59.75 indicating 0.25% gain, Bonny Light, $60.6 (-2.63%), OPEC Basket (-1.06%) to close at $60.68 while Natural gas dipped by 0.12% to close at $2.519.

External reserve

Nigeria’s external reserve gained $1.79 million on Thursday, 8th April 2021 to close at $34.977 billion, being the highest external reserve position recorded in over a month.

  • This indicates a 0.01% increase when compared to $34.975 billion recorded on Thursday 1st April 2021.
  • This also represents an increase in the country’s external reserve position for the 12th consecutive day, having endured a significant downturn in the early parts of the year. Nigeria’s reserve has added a total of $560.5 million in 12 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 dollar received in Nigeria from diaspora remittance.

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