Naira depreciates in official market as oil price hits two-month high – Nairametrics

Thursday 23 September 2021: The exchange rate between the naira and the US dollar closed at 413.68 N / $ 1 at the official window of investors and exporters.

The naira depreciated against the US dollar on Thursday, to close at N / $ 413.68, down 0.12% from N / $ 413.18 recorded on Wednesday, September 22, 2021. The rate of exchange rate has now averaged 413.46 N / $. $ 1 between Monday and Thursday.

Meanwhile, the parallel market exchange rate appreciated slightly to close at N571 / $ 1 on Thursday against N572 / $ 1 recorded the day before. This is according to information obtained by Nairametrics from BDC operators in Lagos.

The crude oil market continued its uptrend as the price of Brent crude surpassed $ 77 per barrel on Thursday, while Bonny Light traded above $ 74 per barrel.

Nigeria’s foreign exchange reserve also gained $ 128.59 million on Wednesday September 22, 2021 to close at $ 35.95 billion, according to data from the Central Bank of Nigeria. So far in September, the CBN has recorded a total reserve gain of $ 1.94 billion.

Trading at the official NAFEX window

The exchange rate fell against the US dollar on Thursday, September 23, 2021 to end the day at N 413.68 per dollar, a depreciation of 0.12% from N 413.18 / $ 1 recorded on Wednesday. September 22, 2021.

The indicative opening rate closed at N413.12 / $ 1 on Thursday, representing a depreciation of 23 kobo from the N412.89 / $ 1 recorded on Wednesday September 22, 2021.

An exchange rate of N 415 per dollar was the highest rate recorded during intraday trading before settling at N / $ 413.68, while it sold for as low as 404 N / $ 1 during intraday trading, the same as the previous day.

Meanwhile, forex turnover at the official box office fell 23.4% on Thursday, September 23, 2021.

According to data tracked by the FMDQ’s Nairametrics, forex revenue increased from $ 229.72 million on Wednesday to $ 175.86 million on Thursday, September 23, 2021.

Cryptocurrency watch

The crypto market recovered from the decline recorded earlier in the week, gaining 2.52% on Thursday to close at $ 2.029 billion after gaining 9.14% on Wednesday. This indicates that crypto investors made over $ 214 billion in two days.

The market was pushed by the positive rally recorded by Bitcoin, which gained 2.61% to close at $ 44,728.99, while Ethereum registered a gain of 2.17% to close at $ 3,145.94 . XRP, however, fell 0.95% to close at $ 0.9946 on Thursday.

The crypto market suffered a bearish trading session on Tuesday as Bitcoin and Ethereum fell 5.14% to close at $ 40,823.77 and 7.35% to close at $ 2,758.62 respectively. The bearish sentiment in the market has been attributed by analysts to fears over the potential default of Evergrande Group, a China-based real estate company whose collapse would affect the stock market.

Meanwhile, Twitter announced in a blog post that the Tipping feature on its platform will accept more payment options, including Bitcoin. The social media giant announced that people can now tip Bitcoin on its platform, using Strike, the US payment app platform that integrates the use of the Bitcoin Lightning network to enable payments. snapshots globally at virtually no cost.

Crude Oil Price

The crude oil market traded higher on Thursday, consolidating gains from the previous trading session. Brent Crude rose 1.39% to close at $ 77.25 a barrel, despite the drop recorded earlier in the week.

West Texas Intermediate also gained 1.41% to close at $ 73.25 a barrel, Natural Gas gained 4.64% to close at $ 5.028 on Thursday. The OPEC basket closed at $ 74.46 a barrel, indicating a gain of 1.06%.

Nigerian Bonny Light crude also posted positive gains, rising 2.44% to close at $ 74.32 per barrel on Thursday, while other Nigerian crudes Brass River and Qua Iboe both posted 0.97% each for close at $ 74.12.

The positive recovery was attributed to lower supply as the US crude inventory fell to its lowest level in three years and the weakening US dollar. On Wednesday, September 22, 2021, the Energy Information Administration reported a drawdown of 3.5 million barrels of crude for the previous week, bringing its inventories to less than 414 million barrels.

External reserve

Nigeria’s foreign exchange reserve increased further by $ 128.59 million on Wednesday, September 22, 2021 to close at $ 35.95 billion from $ 35.83 billion the day before. The latest increase represents a 0.36% increase in the country’s foreign exchange reserves and the highest level since February of the year.

The reserve has now earned $ 1.94 billion as of September 2021, while the recent gain brings the cumulative gain to $ 579.77 million.

The recent increase in the reserves position, which has continued since August 25, is in line with a recent report suggesting that Nigeria’s foreign exchange reserves position could reach $ 40 billion by the end of September 2021.

Although hitting $ 40 billion seems unlikely, but it is an important step in the right direction, especially with the oversubscription of the federal government’s $ 4 billion Eurobond in the international market for debt.

Disclaimer: Nairametrics does not set or determine exchange rates. NAFEX official rates are obtained from the FMDQOTC website. Parallel market rates are obtained from a variety of sources, including online media. The rates you buy or sell in forex may be different from those described in this article.

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