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

Monday, 22nd March 2021: 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.

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.

 

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.

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.

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).

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.