Tuesday, 4th May, 2021: The exchange rate between the naira and the US dollar closed at N411/$1 at the official NAFEX window.

Naira depreciated at the Importers and Exporters window to close at N411 to a dollar on Tuesday, representing a N1 decline when compared to N410/$1 recorded on Friday, 30th April 2021.

On the other hand, the naira remained stable at the parallel market as it closed at N485/$1 on Tuesday, 4th May 2021, the same as recorded on the previous day.

Bitcoin dipped by 5.44% on Tuesday as crude oil prices edge closer to $70 per barrel, while Nigeria’s foreign reserve declined by 0.08% to close at $34.88 billion on Friday, 30th April 2021.

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READ: Exchange rate gains at NAFEX window as Goldman Sachs predicts oil price at $80

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/$1, representing a N1 decline when compared to the N410/$1 that was recorded on Friday.

  • The opening indicative rate closed at N410.5 to a dollar on Tuesday, 4th May 2021, representing a 37 kobo drop when compared to the N410.13/$1 recorded on Friday.
  • Also, an exchange rate of N422 to a dollar was the highest rate recorded during intra-day trading before it settled at N411/$1. It also sold for as low as N395/$1 during intra-day trading, the same as recorded on Friday.
  • Forex turnover at the Investor and Exporters (I&E) window declined by 25% on Tuesday, 4th May 2021.
  • Data tracked by Nairametrics from FMDQ showed that forex turnover reduced from $56.81 million recorded on Friday, 30th April 2021 to $42.59 million on Tuesday, 4th May 2021.

Cryptocurrency watch

Bitcoin, the world’s most popular cryptocurrency, dipped by 5.46% on Tuesday, 4th May 2021 to trade at $54,096.96 as of 11:22 pm.

  • The highly sought-after digital asset lost about $2,743 in a single-day trade, coming on the back of comments made by the Vice-Chairman of Berkshire Hathaway, Charlie Munger.
  • Mr Munger expressed disdain towards the digital asset, describing it as a disgusting development and contrary to the interests of civilisation.
  • Also, Ethereum recorded a 2.47% decline having soared past $3,000 in the previous day’s trading session.
  • The total crypto market capitalisation slumped by 4.28% to close at $2.16 trillion on Tuesday.
  • Bitcoin Depot, a US company, has launched 355 new teller machines across the United States. The announcement comes as the number of ATM locations supporting crypto-fiat exchange now exceeds 19,000 globally.

Crude oil price

Oil prices edged closer to $70 per barrel on Tuesday as Brent Crude gained 2.8% to trade at $69.45.

  • Oil prices rose to the highest level in about seven weeks, as oil demand rebounds in the United States and Europe despite the continual tragic spike in the Covid-19 numbers witnessed in India.
  • The oil complex was also supported on Tuesday by a weaker U.S. dollar, which fell after Monday’s data showed that U.S. manufacturing activity grew in April at a slower pace than expected.
  • This came on the back of the expected economic and oil demand recovery, owing to the easing of lockdown restrictions by U.S. states towards a full reopening of the economy.
  • The bullish run in the global oil market is in line with Goldman Sachs’ prediction that oil prices will rise to $80 per barrel this summer.

External reserve

Nigeria’s external reserve plunged for the 10th consecutive day on Friday, 30th April 2021 as it dipped $27.74 million to close at $34.88 billion.

  • The nation’s foreign reserve declined from $34.91 billion recorded as of Thursday, 29th April 2021 to $34.88 billion on Friday, representing a 0.08% decline.
  • Nigeria’s foreign reserve has dipped $373.57 million since 16th April 2021 to date.