Tuesday, 30th March 2021, the naira depreciated marginally at the parallel market, closing at N486/$1, this represents a N1 drop when compared to the N485/$1 that was recorded on the previous trading day.
However, the exchange rate between the naira and the US Dollar closed at N409/$1 at the Investors and Exporters window.
The naira appreciated against the US Dollar on Tuesday, 30th March 2021 gaining for the third consecutive day at the NAFEX window to close at N409 to a dollar despite very low dollar supply.
This represents a 0.03% gain, when compared to N409.13/$1 recorded on Monday, 29th March 2021.
READ: Naira remains flat as external reserve fall to just 6 months of imports
Trading at the official NAFEX window
The naira appreciated against the US Dollar at the Investors and Exporters window on Tuesday to close at N409/$1. This represents a 13 kobo gain when compared to N409.13/$1 recorded on Monday, 29th March 2021.
- The opening indicative rate closed at N409.07 to a dollar on Tuesday. This represents a 10 kobo gain when compared to the N409.17/$1 that was recorded on Monday.
- Also, an exchange rate of N411 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 N400/$1 during intra-day trading.
- Forex turnover at the Investor and Exporters (I&E) window rose by 55.4% on Tuesday, 30th March 2021.
- A cursory look at the data tracked by Nairametrics from FMDQ showed that forex turnover increased from $30.84 million recorded on Monday, March 29, 2021, to $47.93 million on Tuesday.
READ: Naira gains at NAFEX as oil prices record biggest single day loss in 11 months
Cryptocurrency watch
Bitcoin, the most priced and popular cryptocurrency in the world gained 2.11% on Tuesday evening to trade above $58, 847.28 as it once more heads towards the $60,000 mark.
- The Chief Executive Officer and founder of cryptocurrency exchange Kraken, Jesse Powell, said that one bitcoin will be worth a Lamborghini by the end of the year
- Ethereum also gained 2.18% to trade at $1,849.46 as of Tuesday night.
- Large firms including Mastercard, Paypal and BlackRock have started using some digital coins in recent months.
- The Chief Executive Officer of Paypal, Dan Schulman used bitcoin to pay for cowboy boots.
READ: Naira gains at NAFEX window as external reserve plunges $1.1 billion in less than a month
Oil prices decline
Oil prices dropped on Tuesday with the reopening of the Suez Canal after a week-long blockage, as the rising US dollar put further pressure on crude.
- Brent Crude as of Tuesday evening traded at $64.14 per barrel as Oil prices were also reacting to a potentially bearish signal about US demand after CDC Director Dr. Rochelle Walensky said on a news conference on Monday that the United States was headed to impending doom with the renewed rise of COVID-19 cases.
- The American Petroleum Institute (API) reported a build in crude oil inventories of 3.910 million barrels for the week ending March 26.
- With the Suez Canal crisis over, the focus has now shifted to the OPEC+ meeting on Thursday, which is expected to decide how much oil production the group will keep off the market in May.
- Brent crude dropped by 1.29% during intra-day trading on Tuesday while WTI Crude dropped by 0.36% during the same period.
- Brent ($64.14), WTI crude ($60.36), Bonny Light ($63.13), OPEC Basket ($62.86), and Natural Gas ($2.620).
External reserve increase continues for the 6th consecutive day
Nigeria’s external reserve increased by 0.26% on Monday 29th, March 2021 to stand at $34.76 billion.
- This represents the sixth consecutive day increase, gaining a total of $340 million from $34.42 billion recorded as of March 18, 2021, to $34.76 billion as of 29th March 2021.
- Nigeria’s reserve had lost about $890 million year-to-date before recording increases in the past six 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.