Monday, 30th August 2021: The exchange rate between the naira and the US dollar closed at N411.63/$1 at the Investors and Exporters window, where forex is traded officially.
Naira appreciated against the US dollar to close at N411.63/$1 on Monday, representing a 37kobo gain when compared to N412/$1 recorded at the close of trading on Friday, 27th August 2021.
However, the naira further depreciated at the parallel market as it closed at N527/$1 on Monday, 30th August 2021, representing a N3 drop when compared to N524/$1 recorded on the previous trading day.
The naira slumped to a new record low against the dollar at the black market on Monday days after the CBN banned microfinance banks from foreign exchange transactions as dollar supply drops significantly by 62%.
According to Reuters, the stoppage of forex allocation to BDC operators by the CBN has drained liquidity in the black market and could further weaken the naira.
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Trading at the official NAFEX window
The naira appreciated against the US dollar on Monday 30th August 2021 to close at N411.63 to a dollar, representing a 0.27% depreciation compared to N412/$1 recorded in the previous trading day.
The opening indicative rate closed at N411.93/$1 on Monday, August 30, as against N411.80/$1 recorded on Friday, representing a 13 kobo depreciation.
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An exchange rate of N415.20 to a dollar was the highest rate recorded during intra-day trading before it settled at N411.63/$1, while it sold for as low as N400/$1 during intra-day trading.
Meanwhile, forex turnover at the Investors and Exporters (I&E) window dropped by 62.2% on Monday, 30th August 2021.
According to data from FMDQ, forex turnover declined from $216.52 million recorded on Friday to $81.81 million on Monday, 30th August 2021.
The world’s most popular and largest cryptocurrency, Bitcoin, was down by 2.03% on Monday evening to trade at $47,040.42 as cryptocurrency investors are pushing alternatives to Bitcoin and Ether to new heights amid a climb in downloads for crypto trading apps.
Cryptocurrency prices continue to be in the red on August 31. The global cryptocurrency market cap is $1.98 trillion, a 5.19% decrease over the last day, while the total crypto market volume over the last 24 hours is $103.08 billion, which makes a 14.10% increase.
Meanwhile, anti-Bitcoin protests broke out in El Salvador as Bitcoin law is set to kick off in less than a week with citizens not entirely convinced about it.
The second-largest cryptocurrency by market capitalization, Ethereum, was up by 2.41% in price to trade at 3,237.43 while XRP slumped by 0.85% to trade at $1.11.
Crude oil price
Brent Crude oil was down 0.04% on Monday evening to trade at $73.38 per barrel after rising earlier in the day as hurricane Ida shut 95% of US Gulf coast oil output.
The Kuwaiti oil minister said that crude oil prices could rise further if OPEC+ stops adding barrels to global supply, which is a possibility after the cartel’s next meeting.
OPEC+ had agreed to boost oil production by 400,000 bpd every month beginning August until the group’s combined output reached pre-agreement levels towards the end of next year.
But now that demand concerns are once again coming to the fore, OPEC+ is signalling that it is always ready to change track.
The West Texas Intermediate (WTI) was down by 0.04% to close at $69.18 per barrel on Monday evening, 30th August 2021, after rising earlier in the day.
Natural gas was down by 0.26% to trade at $4,294, Bonny Light Crude closed the day on a positive note as it gained 1.27% to close at $70.02 while OPEC Basket was up by 1.03% to close at $71.48.
Nigeria’s foreign reserve rose by $91 million as it recorded its third increase in over 2 weeks to close at $33.662 billion on Friday, 27th August 2021, compared to $33.571 billion recorded as of the previous day. The latest increase represents a 0.27% boost in the country’s foreign reserve.
In the same vein, the reserve level has also gained $259 million month-to-date compared to $33.403 billion recorded as of the beginning of the month.
However, its year-to-date change shows a $1.891 billion loss compared to $35.37 billion recorded as of 31st December 2021.
While recent reports have suggested that Nigeria’s foreign reserve position could grow as high as $40 billion by the end of September 2021, the recent decline in the external reserve could be attributed to the decline recorded in the global crude oil market in recent weeks.