Currencies
Naira crashes to record low at NAFEX as low dollar supply persists
The exchange rate between the naira and the US Dollar closed at N411.63/$1, a 3 months record low, at the Investors and Exporters window on Tuesday.
The exchange rate between the naira and the US Dollar closed at N411.63/$1, a 3 months record low, at the Investors and Exporters window on Tuesday.
Naira depreciated against the US Dollar on Tuesday as it closed at N411.63 to a dollar at the NAFEX window, representing a 0.59% drop when compared to N409.2 recorded on the previous trading day.
Meanwhile, the naira appreciated against the dollar to close at N480/$1 on Tuesday, March 2, 2021. This represents a N2 gain when compared with the N482/$1 that it closed on the previous trading day.
Although forex turnover at the Investor and Exporters (I&E) window rose by 142.7% from $24.38 million recorded on Friday to $59.17 million on Tuesday, March 2, 2021, the dollar supply still remains low.
Trading at the official NAFEX window
The Naira depreciated against the US Dollar at the Investors and Exporters window on Tuesday to close at N411.63/$1. This represents a N2.43 drop when compared to N409.2 recorded on the previous trading day.
- The opening indicative rate closed at N410.11 to a dollar on Tuesday. This represents an 81kobo drop when compared to N409.3/$1 recorded on Monday.
- Also, an exchange rate of N415 to a dollar was the highest rate during intra-day trading before it closed at N411.63/$1. It also sold for as low as N388.25/$1 during intra-day trading.
- Forex turnover at the Investor and Exporters (I&E) window rose by 142.7% on Tuesday, March 2, 2021.
- According to the data tracked by Nairametrics from FMDQ, forex turnover increased from $24.38 million recorded on Monday, March 1, 2021, to $59.17 million on Tuesday, March 2, 2021.
Cryptocurrency watch
The world’s largest cryptocurrency, Bitcoin dropped on Tuesday to close at $48,814.26 compared to its previous closing of $49,629.33.
- The highly volatile digital asset has risen 76% 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, dropped by 3.95% to $1,520.66 on Tuesday.
Oil price decline
Brent Crude oil dropped $0.95 on Tuesday to close at $63.01 representing a 1.5% decline when compared to $63.96 recorded on the previous trading day.
- The oil price rally had stumbled on the uncertainty surrounding OPEC+ and a stronger dollar.
- Besides the obvious factors that affect oil prices, such as the upcoming OPEC+ meeting that could result in an agreement to boost production, which would dampen prices, there was one new factor, the potential for worsening U.S.-Saudi relations.
- This is coming after the Biden administration released a report that implicated the Saudi Government in the murder of Journalist, Jamal Khashoggi which could negatively affect US-Saudi relations.
- 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 $59.97 (0.37%), OPEC Basket $64.24 (-0.20%), Bonny Light $62.71 (-1.95%), and Natural Gas (+0.04%).
External reserve dips to lowest in two months
Nigeria’s external reserve continued its decline as it dropped by 0.29% to stand at $34.998 billion as of March 1, 2021, compared to $35.1 billion recorded as of February 26, 2021.
- This represents the lowest external reserve position Nigeria has recorded in over 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.
Currencies
Naira gains at black market as external reserves increases by $620 million in 2 weeks
The opening indicative rate closed at N410.88 to a dollar on Monday.
Monday,12th April 2021: The naira appreciated against the dollar at the parallel market on Monday, 12th April 2021 to close at N482 to a dollar. This represents a N3 gain when compared to the N485/$1 that was recorded on Friday, April 9, 2021.
Meanwhile, the exchange rate between Naira and the US Dollar closed at N409.75/1$ in the Importers and Exporters window, where forex is traded officially.
Naira depreciated against the US Dollar at the NAFEX window on Monday to close at N409.75/$1. This represents a 0.18% drop when compared to N409/$1 recorded on Friday, as the country’s external reserve increased by $620 million in 2 weeks.
READ: Naira strengthens at NAFEX window as bitcoin slumps to $52k
Trading at the official NAFEX window
Naira depreciated against the US Dollar at the Investors and Exporters window on Monday to close at N409.75 to a dollar. This represents a 75 kobo drop when compared to N409/$1 recorded on Friday, 9th April 2021.
- The opening indicative rate closed at N410.88 to a dollar on Monday. This represents a N1.09 drop when compared to N409.79/$1 recorded on Friday.
- Also, an exchange rate of N420 to a dollar was the highest rate recorded during intra-day trading before it closed at N409.75/$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 17.9% on Monday, 12th April 2021.
- A cursory look at the data tracked by Nairametrics from FMDQ showed that forex turnover declined from $55.21 million recorded on Friday, April 9, 2021, to $45.35 million on Monday, April 12, 2021.
READ: Naira appreciates at NAFEX as Nigeria’s external reserve is set to get a boost
Cryptocurrency watch
The world’s most popular digital currency, bitcoin, rose by as much as 2.6% to $61,229 on Monday, nearing an all-time high as bullish sentiment gathered steam ahead of listing by the largest US cryptocurrency exchange.
- The cryptocurrency is up almost nine times in the past year, a return that towers above that of more familiar assets like equities or bullion.
- Against the backdrop of Wall Street’s growing embrace of crypto, the direct listing of digital-token exchange Coinbase Global Inc. is generating a lot of interest.
- Coinbase is moving towards a $100 billion valuation as it is due to go public on the Nasdaq on April 14, the first listing of its kind for a major cryptocurrency company and a test of investor appetite for other start-ups in the sector.
- 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.
READ: Best performing mining, industrial and consumer goods stocks from last week
Oil price gain
Brent crude oil price rose on Monday evening as it closed at $63.34 per barrel, indicating a 0.51% increase compared to $63.02 recorded at the close of trade on Sunday on expectations of strong economic recovery.
- Oil prices recorded an increase early on Monday, with WTI Crude topping $60 a barrel for the first time in a week after the Federal Reserve Chairman, Jerome Powell, said that the outlook on the U.S. economy had brightened substantially.
- A weaker U.S. dollar also added to investors’ appetite for crude, while another claim from the Yemeni rebel group, the Houthis that they had targeted oil facilities of Aramco in Saudi Arabia further supported prices.
- Saxo Bank analysts said that the prospect for stronger economic growth helped to offset the impact of a resurgent coronavirus just as OPEC+ prepares to ease production cuts.
- Brent Crude closed at $63.34 (+0.09%), WTI Crude closed at $59.75 indicating 0.08% gain, Bonny Light, $62.20 (+1.06%), OPEC Basket (-0.13%) to close at $61.14 while Natural gas dropped by 0.27% to close at $2.554.
External reserve
Nigeria’s external reserve gained $30 million on Friday, 9th April 2021 to close at $35.036 billion, being the highest external reserve position recorded in over a month.
- This indicates a 0.09% increase when compared to $35.006 billion recorded on Thursday, 8th April 2021.
- It also represents an increase in the country’s external reserve position for the 14th consecutive day, having endured a significant downturn earlier in the year. Nigeria’s reserve has added a total of about $620 million in 14 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.
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/$1.
Friday, 9th April 2021: The exchange rate between Naira and the US Dollar closed at N409/1$ 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
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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