Naira remains stable in official market as CBN steps up foreign exchange intervention – Nairametrics
Wednesday 8 December 2021:The exchange rate between the naira and the US dollar closed at 415.07 N / $ 1 at the official window of investors and exporters (I&E).
The naira held steady against the US dollar on Wednesday to close at N 415.07 / $ 1. This is the same rate as that recorded during previous trading sessions, as the decline in the country’s external reserves continues with a decline of $ 22 million.
However, the naira appreciated against the US dollar on Wednesday as it closed at 568 N / $ 1. This represents a gain of N2 from the N570 / $ 1 recorded in the previous trading session. This is according to information obtained from BDC operators interviewed by Nairametrics.
The local currency has remained stable in the official market as the CBN intensifies its intervention in the foreign exchange market.
Trading at the official NAFEX window
The exchange rate at the Investors and Exporters window was held steady to close at N 415.07 / $ 1 on Wednesday, the same rate as recorded during the last trading session.
The indicative opening rate closed at N413.71 / $ 1 on Tuesday, which is a decrease of 8 kobo from the N413.63 / $ 1 recorded in the previous trading session.
An exchange rate of N444 / $ 1 was the highest rate recorded during intraday trading before settling at N415.07 / $ 1, while it was selling as low as N405 / $ 1 during trading intra-day.
Forex revenue at the official window was slightly flat to trade at $ 225.99 million on Wednesday.
According to data tracked by the FMDQ’s Nairametrics, forex turnover at the I&E window was $ 225.99 million recorded on Tuesday, December 7, 2021, slightly the same volume of $ 225.94 million on Wednesday, 8. December 2021.
The world’s largest and most popular cryptocurrency, Bitcoin, fell 1.21% Thursday morning to trade at $ 49,719.14 as it hovers between gains and losses around the price level of $ 50,000, with traders looking for direction following one of the biggest sellers. -off this year.
On Wednesday, December 8, the global cryptocurrency market saw another drop in investor profit bookings after the market returned the day before.
The crypto market a day ago had regained its momentum after falling steadily over the weekend with all major coins taking losses amid fear of the Omicron variant. The Omicron variant of Covid-19 created panic among investors in all markets, from stocks to crypto, and the result was visible in their plunging numbers.
The global cryptocurrency market saw a sharp decline that day. The crypto market lost value on that day and stood at $ 2.32 trillion. That figure has fallen 3.65% in the past 24 hours.
The total crypto market volume over the past 24 hours was $ 104.09 billion at the time of writing.
Meanwhile, Ethereum, the world’s second largest cryptocurrency by market cap, rose 1.19% to trade at $ 4,372.
Crude Oil Price
Oil extended its gains, with Brent crude rising 0.83% to trade at $ 76.45 a barrel, with early studies showing existing vaccines to be effective against the Omicron variant of the virus, allaying fears of the virus. demand.
Meanwhile, crude oil prices stabilized on Wednesday morning after the Energy Information Administration reported a 0.2 million barrels drawdown from inventories for the week through Dec. 3.
The report comes a day after the American Petroleum Institute surprised markets with an estimated crude oil inventory draw of over 3 million barrels, which helped push prices up.
In EIA estimates, last week’s draft compares to a modest drop of 900,000 barrels for the first week of December. At 432.9 million barrels, US crude oil inventories remain below the five-year seasonal average.
Oil prices had rebounded since the start of the week as initial fears that the new Omicron variant could cause further lockdowns began to fade amid reports of mild symptoms that do not require hospitalization
West Texas Intermediate rose 1.02% to trade at $ 73.10 per barrel. Natural gas fell 0.68% to trade at $ 3,841, while the OPEC basket fell 0.28% to trade at $ 71.41 per barrel.
In contrast, Nigerian Bonny Light crude rose 5.69% to trade at $ 75.18 per barrel.
Nigeria’s external reserve fell 0.05% on Tuesday, December 7, 2021, to close at $ 40.950 billion. This represents a decrease of $ 22 million from the $ 40.972 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.