Naira gains at parallel market. Nigeria’s External reserve closes at $34.65 billion as of 25/03/21; Oil trades at $64.57pb as of 28/03/21; Bitcoin trades above $55k

Friday, 26th March 2021, the naira appreciated marginally at the parallel market, as it closed at N485/$1, representing a N1 gain when compared with the N486/$1 that was recorded in the previous trading day.

However, the exchange rate between the naira and the US Dollar closed at N410/$1 at the Investors and Exporters window.

Naira depreciated against the US Dollar on Friday, 26th March 2021 for the second consecutive day at the NAFEX window to close at N410 to a dollar.

This represents a 0.06% drop, when compared to N409.75/$1 recorded on Thursday, 25th March 2021.

This is as Nigeria’s external reserve continued its rebound gaining 0.09% to close at $34.65 billion as of Thursday, March 25, 2021.

Trading at the official NAFEX window

Naira depreciated against the US Dollar at the Investors and Exporters window on Friday to close at N410/$1. This represents a 25 kobo drop when compared to N409.75/$1 recorded on Thursday, 25th March 2021.

  • The opening indicative rate closed at N409.17 to a dollar on Friday. This represents a 4 kobo gain when compared to N409.21/$1 recorded on Thursday.
  • Also, an exchange rate of N414 to a dollar was the highest rate recorded during intra-day trading before it closed at N410/$1. It also sold for as low as N394/$1 during intra-day trading.
  • Forex turnover at the Investor and Exporters (I&E) window dropped by 57.9% on Friday, 26th March 2021.
  • FMDQ showed that forex turnover declined from $171.85 million recorded on Thursday, March 25, 2021, to $72.43 million on Friday.

Cryptocurrency watch

Bitcoin, the most priced and popular cryptocurrency in the world gained 5.32% late Sunday evening to trade above $55,000 after slipping below $51,000 about 2 days ago.

  • Ethereum also gained 3.23% to trade at $1,671.70 as of Sunday night.
  • Microsoft had launched the Decentralized Identity Platform ION on Bitcoin’s Blockchain.
  • The digital assets had witnessed bearish trading after the chairman of the US Federal Reserve stated that bitcoin and other crypto-assets are really not useful as a store of values.

Oil price persistent fall

Oil prices rebound continued on Sunday on concerns that global supply of crude oil and refined products could be disrupted for weeks as workers try to dislodge a giant container ship blocking the Suez Canal.

  • Brent Crude as of Sunday evening traded at $64.57 per barrel as Goldman Sachs said that crude decline in recent weeks had overshot market fundamentals and demand should still increase sharply through the northern hemisphere’s summer season.
  • This was a rebound from a sharp decline earlier last week on concerns that fresh coronavirus lockdowns in Europe would hurt demand.
  • Brent crude gained about 4.23% during intra-day trading on Sunday after dropping about 4% on Thursday while WTI Crude rose by 4.12% during the same period after having tumbled 4.3% a day earlier.
  • Brent ($64.57), WTI crude ($60.97), Bonny Light ($63.00), OPEC Basket ($61.63), and Natural Gas ($2.557).

External reserve increase continues for the 5th consecutive day

Nigeria’s external reserve increased by 0.09% on Thursday 25th, March 2021 to stand at $34.65 billion.

  • This represents the fifth consecutive day increase, gaining a total of $230 million from $34.42 billion recorded as of March 18, 2021, to $34.65 billion as of 25th March 2021.
  • Nigeria’s reserve had lost about $1 billion year-to-date before recording increases in the past five days, which indicates that the recent oil price rally is beginning to reflect in the country’s external reserve.
  • It is important for Nigeria that the increase continues as it will help the Central Bank stabilise the exchange rate against other currencies and meet up with pent-up obligations due to the lockdown embarked on in 2020.

1 thought on “Naira gains at parallel market. Nigeria’s External reserve closes at $34.65 billion as of 25/03/21; Oil trades at $64.57pb as of 28/03/21; Bitcoin trades above $55k

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