Naira crashes to report low at NAFEX as low greenback provide persists

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The alternate fee between the naira and the US Dollar depreciated to shut at N410.25/$1 on the Investors and Exporters (NAFEX) window, the place foreign exchange is traded formally. This is because the CBN Governor has urged that the official alternate fee has been devalued.

Similarly, on the parallel market the place foreign exchange is traded unofficially, the naira depreciated closing at N482/$1 on Friday, February 26. This represents 0.42% drop when in comparison with the N480/$1 that it closed on the earlier buying and selling day.

However, foreign exchange turnover on the Investor and Exporters (I&E) window decreased by 79.3% from $212.43 million recorded on Wednesday to $43.97 million on Thursday twenty fifth February 2021.

READ: Naira strengthens at NAFEX window despite 79.3% drop in dollar supply

Trading on the official NAFEX window

The Naira depreciated towards the US Dollar on the Investors and Exporters window on Friday closing at N410.25/$1. This represents a 0.39% drop when in comparison with N408.67/$1 recorded on Thursday, February 25, 2021.

  • The opening indicative fee closed at N409.24 to a greenback on Friday. This represents an 8 kobo drop when in comparison with N409.16/$1 recorded on Thursday.
  • Also, an alternate fee of N415 to a greenback was the very best fee throughout intra-day buying and selling earlier than it closed at N410.25/$1. It additionally bought for as little as N392/$1 throughout intra-day buying and selling.
  • Forex turnover on the Investor and Exporters (I&E) window dropped by 14.7% on Friday, February 26, 2021.
  • According to the information tracked by Nairametrics from FMDQ, foreign exchange turnover decreased from $43.97 million recorded on Thursday, February 25, 2021, to $37.49 million on Friday, February 26, 2021.

READ: World’s largest oil producer loses four million barrels per day

Cryptocurrency watch

The world’s largest cryptocurrency, Bitcoin, dropped 6.39% to shut at $43,165.78 on Sunday, shedding $2,944.20 from its earlier shut.

  • Bitcoin has misplaced 26% from the 12 months’s excessive of $58,354.14 on February 21, when it went up amid rising confidence that it’ll change into a mainstream funding and funds automobile.
  • A fast recap of bitcoin’s worst weekly efficiency since March 2020, exhibits that the week’s excessive volatility was not attributable to one issue. It was largely triggered by an overheated derivatives market as merchants rushed to exit leveraged bets that had collected.
  • Further drops had coincided with a sell-off within the broader inventory market on account of rising considerations over surging bond yields, which could cut back the attraction for riskier belongings like cryptocurrencies.
  • Etherium dropped 8.88% to shut at $1,329.46 on Sunday, shedding $129.57 from its earlier shut.
  • Meanwhile, Nigeria’s Vice President, Yemi Osibanjo, whereas disagreeing with the CBN on its current ban on cryptocurrencies, known as for crypto regulation realizing totally properly the function it performs within the international monetary ecosystem. Osibanjo suggested CBN and SEC to create a regulatory highway map for cryptocurrencies.

READ: How Nigeria can make more money from Oil?

Oil value dip marginally on account of pullbacks

Brent crude oil value closed at $64.42 per barrel, dropping $1.69, the WTI Crude closed at $61.50 per barrel, dropping $2.03, OPEC Basket closed at $65.42, gaining $1.42 whereas the Bonny Light closed at $64.33 per barrel, dropping $1.20.

  • These forecasts have known as for a rise in crude oil provide in response to costs climbing above the pre-pandemic degree.
  • Analysts are additionally anticipating that subsequent week’s assembly of OPEC and its allies will end in extra provide returning to the market.
  • U.S. crude oil manufacturing fell in December to a median 11.063 million barrels per day, when in comparison with the common of 12.8 million barrels per day that was achieved in December 2019, based on the Energy Information Administration’s newest month-to-month report.
  • U.S. crude oil manufacturing fell a median of 58,000 barrels per day, the EIA stated on Friday.

The regular decline in exterior reserves

Nigeria’s exterior has declined by 0.15% to face at $35.17 billion as of February twenty fourth 2021 in comparison with $35.23 recorded as of twenty third February.

  • This signifies that Nigeria has misplaced a complete of $1.13 billion in exterior reserve optimistic within the month of February.
  • According to information obtained from the Central Bank of Nigeria (CBN), exterior reserves declined from $36.3 billion as of twenty ninth of January 2021 to $35.17 billion as of twenty fourth of February.
  • It is nevertheless value noting that the decline in Nigeria’s exterior reserve has continued regardless of a pointy improve in international crude oil costs as it’s at present over $64 per barrel from $55.04 recorded as on the finish of January.

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