November 24, 2022
  • November 24, 2022

Naira falls in official market despite 119% improvement in currency supply – Nairametrics

By on December 7, 2021 0

Monday, December 6, 2021:The exchange rate between the naira and the US dollar closed at 415 N / $ 1 at the official Investor and Exporter (I&E) window.

The naira depreciated against the US dollar on Monday to close at N / $ 415, a decrease of 0.07% from the N / $ 414.73 recorded in previous trading sessions, as falling prices The country’s external reserves continued with a decline of $ 33 million.

However, the naira was unchanged against the US dollar on Monday, as it closed at 570 N / $ 1. This is the same rate as that recorded during the previous trading session. This is according to information obtained from BDC operators interviewed by Nairametrics.

The local currency fell in the official market despite a significant 119.3% increase in Forex revenue.

Trading at the official NAFEX window

The exchange rate at the Investors and Exporters window depreciated 27 kobo to close at N 415 / $ 1 on Monday, compared to N 415 / $ 1 recorded in the last trading session.

The indicative opening rate closed at N413.85 / $ 1 on Friday, which is a gain of 21 kobo from the N414.06 / $ 1 recorded in the previous trading session.

An exchange rate of 459.85 N / $ was the highest rate recorded during intraday trading before settling at 415 N / $, when it was selling as low as 404 N / 1 USD during intra-day trading.

Official box office Forex revenue rose sharply 119.3% to $ 225.94 million on Monday.

According to data tracked by FMDQ’s Nairametrics, forex turnover at the I&E front desk increased from $ 103.01 million recorded on Friday, December 3, 2021 to $ 225.94 million on Monday, December 6, 2021.

Cryptocurrency watch

Volatility in the cryptocurrency market continued after a sell-off throughout the weekend and even on Sunday, with prices recovering early on Tuesday after falling on Monday.

The world’s largest cryptocurrency, Bitcoin, rose 4.04% to trade at $ 50,953.40 in the early hours of Monday after a first drop on Monday.

Cryptocurrencies were mostly down on Monday, although market conditions stabilized after the weekend sell off. Bitcoin was trading above its 200-day moving average (currently at $ 46,386), suggesting that selling pressure may ease in the near term.

Bitcoin fell below the $ 1,000 billion market cap level on Monday as the combined crypto market fell towards the $ 2,000 billion mark.

Meanwhile, Ethereum, the world’s second largest cryptocurrency by market cap, rose 4.26% to trade at $ 4,343.93.

Crude Oil Price

Crude oil prices held gains above $ 70 in the early hours of Tuesday as Brent crude rose 0.77% to trade at $ 73.64 a barrel, a sign that concerns about Omicron are overkill.

Oil prices edged up after rebounding nearly 5% the previous day as concerns over the impact of the Omicron variant on global fuel demand eased as Iranian nuclear talks met with downsides. roadblocks, delaying the return of Iranian crude supplies.

Oil prices plunged last week over fears that vaccines would be less effective against the new variant of the Omicron coronavirus, raising fears that governments would reimpose restrictions to curb its spread and affect global growth and demand for oil.

Another sign of confidence in oil demand, Saudi Arabia, the world’s largest exporter, on Sunday raised monthly crude prices.

It comes after OPEC + agreed to continue ramping up production by 400,000 barrels per day in January despite the release of strategic US oil reserves.

West Texas Intermediate gained 1.02% to trade at $ 70.20 a barrel. Additionally, natural gas gained 1.70% to trade at $ 3,719, while the OPEC basket rose 2.26% to trade at $ 71.61 per barrel.

In contrast, Nigerian Bonny Light crude rose 0.82% to trade at $ 71.26 per barrel.

External reserve

Nigeria’s external reserve fell 0.08% on Friday, December 3, 2021, to close at $ 41.085 billion. This represents a decrease of $ 33 million from the $ 41.118 billion recorded the day before.

The steady decline in the country’s reserve level could be attributed to the continued intervention of the umbrella bank to ensure exchange rate stability.

It should be noted that the country’s foreign exchange reserves had gained $ 5.99 billion as of October, thanks to the $ 4 billion raised by the federal government when issuing Eurobonds on the international market. debt.

In November, Nigeria’s external reserve lost $ 633.47 million in value, compared to a gain of $ 5.99 million recorded the previous month and a gain of $ 2.76 million in September 2021. Since then at the start of the year, the reserve gain was reduced to $ 5.74. billion.