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Currencies

Exchange rate weakens as external reserve records first growth in 36 days

Naira depreciated further against the US Dollar on Monday to close at N410.13/$1.

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CBN

Monday, 22nd March 2021: The exchange rate between the naira and the US Dollar closed at N410.13/$1 at the Investors and Exporters window.

Naira depreciated further against the US Dollar on Monday, 22nd March 2021, to close at N410.13/$1. This represents a 0.03% decline compared to N410/$1 recorded on Friday.

Also, at the parallel market, the currency depreciated against the US Dollar to close at N486 to a dollar. This represents a N1 depreciation compared to N485/$1 recorded on Friday, 19th March 2021.

Forex turnover also dipped by 44.3% from $46.43 million recorded on Friday to $25.88 million, while Nigeria’s external reserve grew by 0.11% to close at $34.46 billion as of 19th March 2021. This represents the first growth recorded in exactly 36 days.

Trading at the official NAFEX window

Naira depreciated against the US Dollar at the Investors and Exporters window on Monday to close at N410.13/$1. This represents a 13 kobo decline when compared to N410/$1 recorded on Friday, 19th March 2021.

  • The opening indicative rate closed at N410.7 to a dollar on Monday. This represents a N0.65k depreciation when compared to N410.05/$1 recorded last week Friday.
  • Also, an exchange rate of N412 to a dollar was the highest rate recorded during intra-day trading before it closed at N410.7/$1. It also sold for as low as N401/$1 during intra-day trading.
  • Forex turnover at the Investor and Exporters (I&E) window dropped by 44.3% on Monday, 22nd March 2021.
  • A cursory look at the data tracked by Nairametrics from FMDQ showed that forex turnover declined from $46.43 million recorded on Friday, March 19, 2021, to $25.88 million which is the lowest recorded in 15 days.

Cryptocurrency watch

Bitcoin, the world’s most popular and largest cryptocurrency is currently trading at $54,536.72 as of 4:46 am on Tuesday.

  • This represents a 0.77% increase compared to the previous day’s trade.
  • According to a recent article published by Nairametrics, the number of entities owning more than 1000 Bitcoins has hit a one-month low, amid the high volatility at the world’s most popular crypto market.
  • The report indicated that the number of wallets holding 100 Bitcoins just reached a 1-month low of 2,266.
  • Meanwhile, as the price of Bitcoin continues to appreciate in value, traders have shown expectation for some form of price correction, which is why there is a significant amount of market volatility, with sellers and buyers trying to take hold.

Oil price persistent decline

Brent crude oil continued its current bearish trend as it dipped $0.81 to close at $63.81 on Monday 22nd March 2021. This represents 1.24% decline in a single day.

  • The decline in crude oil prices was attributed to rising US Dollar value, increasing US crude inventories, and fresh setbacks in vaccination programs in Europe.
  • Additionally, the EIA inventory report showed that US commercial crude oil inventories rose above 500 million barrels for the first time this year.
  • Also, over a dozen countries in Europe are still suspending the AstraZeneca vaccine over the concerns of blood clots.
  • Meanwhile, WTI Crude traded at positive rejoin to close at $61.55 (+0.21%), Bonny Light ($62.91), OPEC Basket ($62.47), Natural Gas ($2.568).

External reserve grows first time in 36 days

Nigeria’s external reserve grew by 0.11% on Friday, 19th March 2021 to stand at $34.46 billion, representing the first positive growth recorded in 39 days.

  • The country’s external reserve moved upward from $34.42 billion recorded as of Thursday, 18th March 2021 to stand at $34.46 billion as of 19th March 2021.
  • The current external reserves positive represents a $917.68 million decline when compared to the last day of 2020 when it stood at $35.37 billion, while it has lost $643.6 million year to date.
  • The recent persistent decline in Nigeria’s external reserve position can be attributed to the intervention of the Central Bank in the forex market, with the aim of managing the exchange rate volatility in the country.

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Currencies

Naira remains stable across forex market as dollar supply improves significantly by 430%

Naira remained stable against the US Dollar at the NAFEX window on Thursday to close at N410.50/$1.

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Naira value

Thursday,15th April 2021: The exchange rate between Naira and the US Dollar closed at N410.50/1$ in the Importers and Exporters window, where forex is traded officially.

Naira remained stable against the US Dollar at the NAFEX window on Thursday to close at N410.50/$1 as there was no movement when compared to the rate that was recorded on Wednesday, as dollar supply improves significantly by about 430%.

Also, the naira remained stable against the dollar for the third day at the parallel market on Thursday, 15th April 2021 to close at N482 to a dollar, the same rate that was recorded on Wednesday, April 14, 2021.

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 remained stable against the US Dollar at the Investors and Exporters window on Thursday to close at N410.50 to a dollar. This was the same rate that was recorded on Wednesday, 14th April 2021.

  • The opening indicative rate closed at N410.50 to a dollar on Thursday. This represents an 86 kobo drop when compared to N409.64/$1 recorded on Wednesday.
  • Also, an exchange rate of N437.62 to a dollar was the highest rate recorded during intra-day trading before it closed at N410.50/$1. It also sold for as low as N392/$1 during intra-day trading.
  • Forex turnover at the Investor and Exporters (I&E) window rose significantly by 429.93% on Thursday, 15th April 2021.
  • A cursory look at the data tracked by Nairametrics from FMDQ showed that forex turnover increased from $21.92 million recorded on Wednesday, April 14, 2021, to $116.16 million on Thursday, April 15, 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, went up by over 1% to close at $63,441 on Thursday evening as most investors still think it is a bubble.

  • Bitcoin had crossed the $64,000 mark on Wednesday after it traded past the $63,000 mark the previous day for the first time.
  • The Co-Founder and Managing Director of Nexo, Antoni Trenchev, had said that Bitcoin could hit $100,000 in the next 12 to 18 months.

Oil price gain

Brent crude oil price went up slightly on Thursday to close at $66.83 per barrel, indicating a 0.3% increase compared to $66.63 recorded at the close of trade on Wednesday as it trades at a one-month high.

  • Oil extended its climb out of a month-long trading range with further signs of an accelerating rebound taking shape in the U.S.
  • Oil remains firmly above its most recent trading range, where it had been stuck near $60 a barrel since mid-March as some regions faced a resurgence in virus cases. Continued signs of a stronger U.S. market are also pushing prices higher.
  • Brent Crude closed at $66.83 (+0.38%), WTI Crude closed at $63.46 indicating 0.49% gain, Bonny Light, $64.79 (+3.56%), OPEC Basket (+2.46%) to close at $63.39 while Natural gas rose by 1.53% to close at $2,658

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

External reserve

Nigeria’s external reserve gained about $27 million on Wednesday, 14th April 2021 to close at $35.199 billion, being the highest external reserve position recorded in over a month.

british airways
  • This indicates a 0.08% increase when compared to $35.172 billion recorded on Tuesday, 13th April 2021.
  • It also represents an increase in the country’s external reserve position for the 17th consecutive day, having endured a significant downturn earlier in the year. Nigeria’s reserve has added a total of about $783 million in 17 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.

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Currencies

Naira appreciates at NAFEX as CBN sells forex to foreign investors, first in 2021

Naira appreciated against the US Dollar at the NAFEX window on Wednesday to close at N410.50/$1.

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Wednesday,14th April 2021: The exchange rate between Naira and the US Dollar closed at N410.50/1$ in the Importers and Exporters window, where forex is traded officially.

Naira appreciated against the US Dollar at the NAFEX window on Wednesday to close at N410.50/$1. This represents a 0.12% gain when compared to N411/$1 recorded on Tuesday, as the Central Bank of Nigeria in its first sale, in 2021, to foreign investors seeking to repatriate their funds abroad, sold $20 million to them according to Reuters.

Meanwhile, the naira remained stable against the dollar for the second day at the parallel market on Wednesday, 14th April 2021 to close at N482 to a dollar, the same rate that was recorded on Tuesday, April 13, 2021.

READ: Naira falls at NAFEX window as Bitcoin rises above $63,000, an all-time record high

Trading at the official NAFEX window

Naira appreciated against the US Dollar at the Investors and Exporters window on Wednesday to close at N410.50 to a dollar. This represents a 50 kobo gain when compared to N411/$1 recorded on Tuesday, 13th April 2021.

  • The opening indicative rate closed at N409.64 to a dollar on Wednesday. This represents a 6 kobo drop when compared to N409.58/$1 recorded on Tuesday.
  • Also, an exchange rate of N422 to a dollar was the highest rate recorded during intra-day trading before it closed at N409.64/$1. It also sold for as low as N392/$1 during intra-day trading.
  • Forex turnover at the Investor and Exporters (I&E) window dropped significantly by 59.05% on Wednesday, 14th April 2021.
  • A cursory look at the data tracked by Nairametrics from FMDQ showed that forex turnover declined from $53.53 million recorded on Tuesday, April 13, 2021, to $21.92 million on Wednesday, April 14, 2021.

READ: Naira gains at NAFEX window despite 26.2% drop in dollar supply

Cryptocurrency watch

The world’s most popular digital currency, bitcoin, reached another all-time high on Wednesday, touching $64,717.01 before coming down to $62,298.51 as of Wednesday evening ahead of Coinbase’s historic stock market listing in New York.

  • Bitcoin, which has been up and down over the last few weeks, crossed $64,000 on Wednesday after it had just yesterday, crossed the $63,000 mark for the first time.
  • The rally has come in anticipation of cryptocurrency exchange Coinbase’s hotly tipped US stock market listing.
  • Earlier on Wednesday, the price of Dogecoin, recorded a new milestone as it went up by 54%, establishing a new all-time high of $0.1161.
  • Meanwhile, Coinbase, a Cryptocurrency exchange, finally made its highly anticipated debut on Nasdaq on Wednesday, April 14, 2021, becoming the first company devoted entirely to cryptocurrency to enter the US stock exchange with a $100 billion valuation.

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

Oil price gain

Brent crude oil price jumped on Wednesday to close at $66.63 per barrel, indicating a 3.98% increase compared to $64.08 recorded at the close of trade on Tuesday as the Energy Information Administration (EIA) reports crude draw.

  • The EIA in its report said that crude oil inventories had shed 5.9 million barrels in the week to April 9, compared with an inventory draw of 3.5 million barrels reported for the previous week.
  • The EIA’s inventory estimate comes a day after the American Petroleum Institute reported a 3.6-million-barrel inventory draw in crude oil for the same period but a 5.565-million-barrel build in gasoline stocks, which prevented oil prices from swinging significantly up or down.
  • The oil rally can also be attributable to the picking up of US oil demand as economic expansion quickens. The West Texas Intermediate (WTI) crude futures surged more than 5% on Wednesday and broke out the narrow trading range they had been stuck in since mid-March.
  • Morgan Stanley, meanwhile, said in a new note that it expected prices to remain range-bound through the end of the summer, at between $65 and $70 per barrel for Brent.
  • Brent Crude closed at $66.63 (+4.65%), WTI Crude closed at $63.18 indicating 4.99% gain, Bonny Light, $62.56 (+0.58%), OPEC Basket (+0.67%) to close at $61.87 while Natural gas declined by 0.08% to close at $2,617

External reserve

Nigeria’s external reserve gained about $34 million on Tuesday, 13th April 2021 to close at $35.172 billion, being the highest external reserve position recorded in over a month.

british airways
  • This indicates a 0.1% increase when compared to $35.138 billion recorded on Monday, 12th April 2021.
  • It also represents an increase in the country’s external reserve position for the 16th consecutive day, having endured a significant downturn earlier in the year. Nigeria’s reserve has added a total of about $756 million in 16 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.

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