Naira rises to N408.90/$ at NAFEX despite reduced dollar supply

Monday 15th March 2021: The exchange rate between the Naira and the US Dollar closed at N408.90 to a dollar at the Investors and Exporters window.

The Naira appreciated against the US Dollar on Monday to close at N408.90/$1, representing a 0.27% gain when compared to N410/$1 recorded on Friday, 12th March 2021 despite drop in dollar supply.

Also, the Naira remained stable against the US Dollar in the parallel market, to close at N485 to a dollar. the same as the rate that was recorded on the previous day.

This is coming after the Association of Bureau De Change Operators in Nigeria (ABCON) said that BDCs will collaborate with the CBN to defend the naira

Trading at the official NAFEX window

Naira appreciated against the US Dollar at the Investors and Exporters window on Monday to close at N408.90 to a dollar. This represents a N1.10 gain when compared to N410/$1 recorded on the previous trading day.

  • The opening indicative rate closed at N410.95 to a dollar on Monday. This represents a N1.82 drop when compared to N409.13/$1 recorded on Friday.
  • Also, an exchange rate of N412 to a dollar was the highest rate during intra-day trading before it closed at N408.90/$1. It also sold for as low as N390/$1 during intra-day trading.
  • Forex turnover at the Investor and Exporters (I&E) window dropped by 20.68% on Friday, 12th March 2021.
  • Forex turnover declined from $63.88 million recorded on Friday, March 12, 2021, to $50.67 million on Monday, March 15, 2021,

Cryptocurrency watch

Bitcoin, the world’s most popular and largest cryptocurrency dropped by as much as 9.2% before trading at $56,131, after topping out of $61,742 on Saturday.

  • Bitcoin reached its latest all-time high on optimism that some of the pandemic relief payments in the U.S. will end up chasing the digital token’s towering rally.
  • The new mark for the world’s most popular crypto comes after a relatively fallow period for the asset whose gains have been attributed to greater adoption by a clutch of prominent institutional investors.

Oil prices record decline

Brent Crude oil on Monday 15th March 2021 dropped by 1.8% to close at $68.47, as it continued to recover from its slump last year.

  • Despite optimism from Chinese data overnight, forecasts for lower OPEC+ output, and a weaker dollar, oil prices are dropping.
  • Oil declined for a second day as the market’s underlying structure weakened and the dollar strengthened.
  • There have been some suggestions that the drop is due to investors also considering the potential impact of higher taxes and how that could affect corporate profit growth. President Joe Biden is planning the first major federal tax hike since 1993 to help pay for a long-term economic program, according to people familiar with the matter.
  • Oil traders assessed prospects for further recovery from the pandemic and the outlook for rising global demand as the OPEC+ alliance presses on with output curbs to drain inventories.
  • WTI Crude closed at $64.89 (-0.76%), OPEC Basket $68.14 (+1.11), Bonny Light $67.51 (-1.26%), and Natural Gas $2,492 (+0.32%).

External reserve continues its decline

Nigeria’s external reserve declined by 0.12% on Friday, 12th March 2021 to stand at $34.59 billion being a record low in 10 months.

  • The country’s external reserve declined from $34.63 billion recorded as of Thursday, 11h March 2021 to stand at $34.59 billion as of 12th March 2021.
  • Nigeria’s current external reserve position indicates a total drop of about $410 million in the month of March 2021.

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