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Exchange Rate Weakens As External Reserve Records First Growth In 36 Days

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CityNews Nigeria reports that 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.

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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.

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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.
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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.
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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).
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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.

 

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