Naira gains as the country’s external reserve drops continues

dollar naira II

At the Investors and Exporters window, the exchange rate between the Nigerian naira and US dollars was N415.10/$1.

Naira closed at N415.10/$1 on Friday, after a slight depreciation against the US dollar. This is 0.01% less than the N415.07 recorded in previous trading sessions. The drop in the country’s foreign reserves continued with a decrease of $26 million.

The naira closed Friday at N575/$1. This is a drop of N5 compared to N570/$1 recorded during the previous trading session. According to Nairametrics, this information was obtained from BDC operators.

As the forex turnover falls by 84%, the local currency will see a decline in value at the official market.

Trading at NAFEX’s official window

The Investors and Exporters exchange rate closed at N415.10/$1 Wednesday. This is a 3 kobo decrease compared to N415.07/$1 recorded in the previous trading session.

On Friday, December 10, the opening indicative rate closed at N413.69/$1. This is a 2 kobo increase compared to N413.71/$1 recorded in the previous trading session.

An exchange rate at N452.15/$1 was recorded in intra-day trades before it settled at N415.10/$1. It sold for as little as N404/$1 during intraday trading.

The official forex turnover fell by 81.4%, trading at $84.44 Million on Friday.

Nairametrics data from FMDQ shows that forex turnover at the I&E window fell from $453.38 Million on Thursday 9th December 2021 to $84.44 Million on Friday 10th December 2021.

Watch Cryptocurrency

Due to the COVID panic, Bitcoin, the world’s most popular and largest cryptocurrency, fell by 0.66% to $48,849.51

After a brief rebound triggered by the report that US inflation had accelerated, Bitcoin fell for the fourth consecutive week. This was despite the negative sentiment that gripped digital-asset markets recently.

It has also fallen by 30% since November 10, when it reached a record close to $69,000. However, it has gained approximately 65% this year. Ether, also on the verge of an all-time high, fell for a second consecutive day.

Due to a number of factors, the global cryptocurrency market continued to decline. On Saturday, the global cryptocurrency market capitalization stood at $2.24 trillion.

Ethereum, the second-largest cryptocurrency in terms of market capitalization, dropped by 1.66% to trade for $3,978.53

Crude oil prices

Brent crude oil continued to rally, rising by 0.67% to $75.65 per barrel as oil posted its strongest week since August.

WTI futures in West Texas Intermediate (WTI), rose 8.2% last week, with fuel consumption escaping any major blows so far from the omicron variant. However, confidence is low.

After a multiweek plunge, oil has experienced a remarkable turnaround.

There are signs of weakness emerging. Traders face the possibility of a declining physical market for crude oil in Asia, despite Saudi Arabia’s decision to increase oil prices in January.

Some unnamed sources claim that Saudi Arabia will supply all contracted oil volumes to its Asian buyers. This month will mark the fourth consecutive month of full deliveries by Saudi Arabia. This suggests that the crude oil supply is adequate for the moment.

The West Texas Intermediate traded at $72.32 per barrel after an increase of 0.91%. Natural gas traded at $3,979 up 1.38% while OPEC Basket traded at $75.09 per bar up 5.15%.

However, Nigerian crude oil, Bonny Light, fell by 0.60% to trade for $74.38 per barrel.

External reserves

The Nigerian external reserve fell by 0.06% to $40.905 billion on Thursday 9th December 2021. This is a decrease in $26 million, compared to the $40.931 billion that was recorded on the previous day.

The steady decline in the reserve level of the country could be attributed the constant intervention by the apex bank to ensure stability of the exchange rates.

It’s worth noting, however, that $5.99 billion was added to the nation’s foreign reserves in October due to the $4 billion raised in international debt markets by the federal government through the issuance Eurobond.

The value of Nigeria’s external reserves fell $633.47million in November compared to a gain $5.99million in the previous month, and a gain $2.76million in September 2021. The reserve gain is now at $5.74 billion for the year.

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