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Currencies

Naira gains at black market as rebound in external reserve continues

The naira appreciated marginally at the parallel market, as it closed at N485/$1.

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Friday, 26th March 2021, the naira appreciated marginally at the parallel market, as it closed at N485/$1, representing a N1 gain when compared with the N486/$1 that was recorded in the previous trading day.

However, the exchange rate between the naira and the US Dollar closed at N410/$1 at the Investors and Exporters window.

Naira depreciated against the US Dollar on Friday, 26th March 2021 for the second consecutive day at the NAFEX window to close at N410 to a dollar.

This represents a 0.06% drop, when compared to N409.75/$1 recorded on Thursday, 25th March 2021.

This is as Nigeria’s external reserve continued its rebound gaining 0.09% to close at $34.65 billion as of Thursday, March 25, 2021.

Trading at the official NAFEX window

Naira depreciated against the US Dollar at the Investors and Exporters window on Friday to close at N410/$1. This represents a 25 kobo drop when compared to N409.75/$1 recorded on Thursday, 25th March 2021.

  • The opening indicative rate closed at N409.17 to a dollar on Friday. This represents a 4 kobo gain when compared to N409.21/$1 recorded on Thursday.
  • Also, an exchange rate of N414 to a dollar was the highest rate recorded during intra-day trading before it closed at N410/$1. It also sold for as low as N394/$1 during intra-day trading.
  • Forex turnover at the Investor and Exporters (I&E) window dropped by 57.9% on Friday, 26th March 2021.
  • A cursory look at the data tracked by Nairametrics from FMDQ showed that forex turnover declined from $171.85 million recorded on Thursday, March 25, 2021, to $72.43 million on Friday.

Cryptocurrency watch

Sigma Pensions

Bitcoin, the most priced and popular cryptocurrency in the world gained 5.32% late Sunday evening to trade above $55,000 after slipping below $51,000 about 2 days ago.

  • Ethereum also gained 3.23% to trade at $1,671.70 as of Sunday night.
  • Microsoft had launched the Decentralized Identity Platform ION on Bitcoin’s Blockchain.
  • The digital assets had witnessed bearish trading after the chairman of the US Federal Reserve stated that bitcoin and other crypto-assets are really not useful as a store of values.

Oil price persistent fall

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Oil prices rebound continued on Sunday on concerns that global supply of crude oil and refined products could be disrupted for weeks as workers try to dislodge a giant container ship blocking the Suez Canal.

  • Brent Crude as of Sunday evening traded at $64.57 per barrel as Goldman Sachs said that crude decline in recent weeks had overshot market fundamentals and demand should still increase sharply through the northern hemisphere’s summer season.
  • This was a rebound from a sharp decline earlier last week on concerns that fresh coronavirus lockdowns in Europe would hurt demand.
  • Brent crude gained about 4.23% during intra-day trading on Sunday after dropping about 4% on Thursday while WTI Crude rose by 4.12% during the same period after having tumbled 4.3% a day earlier.
  • Brent ($64.57), WTI crude ($60.97), Bonny Light ($63.00), OPEC Basket ($61.63), and Natural Gas ($2.557).

External reserve increase continues for the 5th consecutive day

Nigeria’s external reserve increased by 0.09% on Thursday 25th, March 2021 to stand at $34.65 billion.

Stanbic 728 x 90
  • This represents the fifth consecutive day increase, gaining a total of $230 million from $34.42 billion recorded as of March 18, 2021, to $34.65 billion as of 25th March 2021.
  • Nigeria’s reserve had lost about $1 billion year-to-date before recording increases in the past five days, which indicates that the recent oil price rally is beginning to reflect in the country’s external reserve.
  • It is important for Nigeria that the increase continues as it will help the Central Bank stabilise the exchange rate against other currencies and meet up with pent-up obligations due to the lockdown embarked on in 2020.

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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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

    Sigma Pensions

    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.

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    • 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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    Currencies

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

    Naira depreciated against the US Dollar at the NAFEX window on Tuesday to close at N411/$1.

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    on

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

    Tuesday,13th April 2021: The exchange rate between Naira and the US Dollar closed at N411/1$ in the Importers and Exporters window, where forex is traded officially.

    Naira depreciated against the US Dollar at the NAFEX window on Tuesday to close at N411/$1. This represents a 0.31% drop when compared to N409.75/$1 recorded on Monday, as the world’s largest cryptocurrency, Bitcoin hits an all-time high rising above $63,000.

    Meanwhile, the naira remained stable against the dollar at the parallel market on Tuesday, 13th April 2021 to close at N482 to a dollar, the same rate that was recorded on Monday, April 12, 2021.

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

    Trading at the official NAFEX window

    Naira depreciated against the US Dollar at the Investors and Exporters window on Tuesday to close at N411 to a dollar. This represents a N1.25 drop when compared to N409.75/$1 recorded on Monday, 12th April 2021.

    • The opening indicative rate closed at N409.58 to a dollar on Tuesday. This represents a N1.30 gain when compared to N410.88/$1 recorded on Monday.
    • Also, an exchange rate of N436.81 to a dollar was the highest rate recorded during intra-day trading before it closed at N411/$1. It also sold for as low as N400/$1 during intra-day trading.
    • Forex turnover at the Investor and Exporters (I&E) window rose by 18.04% on Tuesday, 13th April 2021.
    • A cursory look at the data tracked by Nairametrics from FMDQ showed that forex turnover increased from $45.35 million recorded on Monday, April 12, 2021, to $53.53 million on Tuesday, April 13, 2021.

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

    Cryptocurrency watch

    The world’s most popular digital currency, bitcoin, hit an all-time high above the $63,000 mark, extending its 2021 rally to new heights a day before Coinbase’s share listing in the United States.

    • Bitcoin closed at $63, 625.50 with several analysts feeling bullish, with price targets at $70,000 or higher by next month.
    • Risks remain, as some analysts choose to wait for confirmation of the breakout in price charts, especially as bullish positioning reaches extreme levels in the futures market.
    • The world’s biggest cryptocurrency, which has growing mainstream acceptance as an investment and a means of payment, rose by over 5% on Tuesday. Smaller rival Ethereum also reached a record high of $2,336.75.
    • Major firms including BNY Mellon, Mastercard Inc and Tesla Inc are among those to have embraced or invested in cryptocurrencies.
    • 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.

    Oil price gain

    Brent crude oil price rose on Tuesday as it closed at $64.08 per barrel, indicating a 1.68% increase compared to $63.02 recorded at the close of trade on Monday on signs of US inventory drawdown.

    Sigma Pensions
    • Oil extended gains in Asian trading after an industry report pointed to another decline in US crude stockpiles that followed an upbeat assessment of the demand outlook from OPEC.
    • The American Petroleum Institute (API) on Tuesday reported a draw in crude oil inventories of 3.608 million barrels for the week ending April 9. Analysts had predicted a draw of 2.889 million barrels for the week.
    • OPEC boosted its consumption forecast for this year and predicted the market recovery will continue.
    • The latest data from the Energy Information Administration says that while inventories of crude oil are falling, U.S. oil production slipped from 11 million BPD to 10.9 million BPD during the week ending April 2.
    • Brent Crude closed at $64.08 (+0.64%), WTI Crude closed at $60.62 indicating 0.73% gain, Bonny Light, $62.56 (+0.58%), OPEC Basket (+0.52%) to close at $61.46 while Natural gas rose by 0.23% to close at $2,625

    External reserve

    Nigeria’s external reserve gained $102 million on Monday, 12th April 2021 to close at $35.138 billion, being the highest external reserve position recorded in over a month.

    • This indicates a 0.29% increase when compared to $35.036 billion recorded on Friday, 9th April 2021.
    • It also represents an increase in the country’s external reserve position for the 15th consecutive day, having endured a significant downturn earlier in the year. Nigeria’s reserve has added a total of about $722 million in 15 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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