CBN to sanction banks, BDCs for rejecting outdated, smaller denomination of US {dollars}

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Tuesday, twentieth April 2021: The change fee between the naira and the US greenback closed at N410.67/$1 on the buyers and exporters window, the place foreign exchange is traded formally.

Naira depreciated towards the US greenback to shut at N410.67 to a greenback on Tuesday, twentieth April 2021. This represents a 0.08% decline when in comparison with N410.33/$1 recorded on Monday, nineteenth April 2021.

Naira additionally declined towards the US greenback within the parallel market on Tuesday, because it closed at N486/$1, representing 0.83% depreciation in comparison with N482/$1 recorded on Monday, nineteenth April 2021.

Nigeria’s overseas reserve dipped for the primary in about 19 days, because it declined by 0.1% to face at $35.22 billion.

READ: Naira gains at NAFEX window despite 26.2% drop in dollar supply

Trading on the official NAFEX window

The naira depreciated towards the US Dollar on the Investors and Exporters window on Tuesday to shut at N410.67/$1. This represents a 34 kobo decline when in comparison with N410.33/$1 recorded on Monday, nineteenth April 2021.

  • The opening indicative fee closed at N409.5 to a greenback on Tuesday. This represents a 50 kobo depreciation, in comparison with N409/$1 recorded yesterday.
  • Also, an change fee of N437.41 to a greenback was the very best fee recorded throughout intra-day buying and selling earlier than it closed at N410.67/$1. It additionally offered for as little as N381/$1 throughout intra-day buying and selling.
  • Forex turnover on the Investor and Exporters (I&E) window improved by 42.7% on Tuesday, twentieth April 2021.
  • A cursory take a look at the information tracked by Nairametrics from FMDQ confirmed that foreign exchange turnover elevated from $69.71 million recorded on Monday, April nineteenth, 2021, to $99.49 million on Tuesday.

READ: Naira appreciates at NAFEX as CBN sells forex to foreign investors, first in 2021

Cryptocurrency watch

The world’s most sought-after digital asset, Bitcoin grew by 1.56% to commerce at $56,562.53 on Tuesday, twentieth April 2021.

  • Bitcoin elevated by $867.98, whereas Ethereum additionally grew by 7.96% to commerce at $2,336.1.
  • The cryptocurrency had fallen to $52,000 on Sunday, sharply off its document excessive final week of above $64,800 attributable to a big sell-off tied to rumours of a regulatory crackdown within the US.
  • It is price noting that Bitcoin has risen by 680% up to now 12 months.

READ: Naira gains at NAFEX window despite 26.2% drop in dollar supply

Crude oil worth slumps

Crude oil costs slumped on Tuesday, twentieth April 2021 as Brent Crude dipped by 0.72% to shut at $66.57.

  • The lower may very well be attributed to the rising instances of the covid-19 illness in most European international locations.
  • According to stories, Funds have reduce their positions throughout the six main oil contracts for 2 out of the final three weeks, given the pandemic state of affairs and the persistent uncertainty round jet gasoline demand restoration.
  • Oil costs had posted modest good points within the early hours of Tuesday following stories of an outage in Libya. However, demand issues despatched costs falling to shut at $66.57.
  • Brent Crude closed at $66.57 (-0.72%), WTI Crude closed at $62.44 indicating 1.48% decline, Bonny Light, $65.17 (-0.12%), OPEC Basket (-0.17%) to shut at $65.1 whereas pure gasoline additionally dipped by 0.29% to shut at $2.719.

READ: Has the Naira been devalued?

External reserve

Nigeria’s exterior reserve decreased by 0.1% on Monday, nineteenth April 2021 to face at $35.22 billion.

  • Nigeria’s overseas change reserve dipped for the primary time in 19 days, after having fun with optimistic development because the 18th of March, 2021.
  • The current improve had been attributed to the rise within the worth of crude oil after enduring a major worth crash in 2020.
  •  The CBN coverage on diaspora remittances might need contributed to the current optimistic motion in Nigeria’s exterior reserve.
  • Meanwhile, the Central Bank of Nigeria has ordered Deposit Money Banks (DMBs) and Bureau De Change operatives to simply accept outdated and decrease denominations of {dollars} from their prospects as authorized tender or face sanctions.

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