The exchange rate between the naira and US dollar closed at N410.8/$1 in the official Investors and Exporters forex window.
Naira appreciated against the US dollar on Friday, 11th June 2021 to close at N410.80 to a dollar as against N411.83/$1 recorded on the previous day, 10th June 2021, representing a N1.03 gain.
However, the naira remained stable at the parallel market, as it closed at N502/$1, while forex turnover increased marginally by 3.2% from $89.89 million to $92.78 million. Crude oil prices have also maintained strong performances as Brent Crude hit $73 per barrel in the early hours of Monday morning.
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Trading at the official NAFEX window
The naira gained against the US dollar at the Investors and Exporters window on Friday to close at N410.8/$1, representing a N1.03 appreciation when compared to the N411.83/$1 that was recorded on the previous day.
- The opening indicative rate closed at N410.56 to a dollar on Friday, 11th June 2021, representing a 23 kobo gain when compared to the N410.79/$1 recorded on Thursday.
- Also, an exchange rate of N430 to a dollar was the highest rate recorded during intra-day trading, before it settled at N410.8/$1. It also sold for as low as N400/$1 during intra-day trading, the same as recorded in over a week.
- Forex turnover at the Investors and Exporters (I&E) window increased by 3.2% on Friday, 11th May 2021.
- Data tracked by Nairametrics from FMDQ showed that forex turnover increased from $89.89 million recorded on Thursday, 10th June 2021 to $92.78 million on Friday, 11th June 2021.
Cryptocurrency watch
The world’s most popular digital currency posted impressive gains on Sunday, 13th June 2021, recording a 9.19% increase to close at $38,809.27. This indicates a gain of $3.266.51 as of 11:59 pm on Sunday.
- Ethereum also posted a 5.78% growth to close at $2,503.75, while XRP gained 5.91% to close at $0.0049.
- On the other hand, the Director, Information Technology Department, Central Bank of Nigeria (CBN), Mrs Rakiyat Mohammed, stated at the banker’s committee meeting on Thursday, that the CBN would be launching a Central Bank Digital Currency (CBDC) before the end of 2021.
- The director made mention of the fact that about 80% of central banks in the world were looking into the possibility of issuing a central bank digital currency, and Nigeria could not be left behind.
Brent hits $73 per barrel
Crude oil prices maintained their strong momentum as Brent crude topped $73 per barrel, having recorded a 0.59% gain in the early hours of Monday morning.
- Bonny Light also gained 0.21% to trade at $72.08, WTI Crude gained 0.52% to trade at $71.28.
- This came on the back of the latest IEA monthly oil report, where they called on OPEC+ to increase production in order to counter higher demand in 2022.
- The agency also claimed that, based on current global economic growth expectations, demand for crude oil and petroleum products would be reaching pre-COVID levels by 2022.
- The agency, however, called for no more investments in oil and gas, as it is expected to hit net zero-emission levels by 2050.
- Meanwhile, the ten largest public oil firms in the world reported a combined profit of $46 billion for Q1 2021, as a result of higher oil prices this year.
External reserve
Nigeria’s external reserve continues to plunge further, as it dipped by $40.79 million on Thursday, 10th June, 2021 to close at $34 billion.
- The decline represents a 0.12% reduction in Nigeria’s external reserve position and the lowest level since May 2020.
- A total of $1.37 billion has been lost in reserves year-to-date, while month-to-date loss stands at $222.33 million.
- The decline has persisted despite the gains recorded in the global crude oil price. Oil prices are already trading over $72 per barrel. This has however been attributed to the decline in crude oil sales, due to the effect of the covid-19 pandemic on the buying capacity of India, which is one of the world’s largest importer of oil.
